Louisiana Municipal Police Employees Retirement System, Baton Rouge, hired Guggenheim Investments to run between $50 million and $55 million in an active domestic high-yield bond portfolio, said Kelli Rogers, chief financial officer.
The $1.8 billion pension fund issued an RFP in April after terminating Post Advisory Group, which ran $83 million in a similar portfolio, due to personnel changes.
Other finalists were Columbia Management Investment Advisers, First Eagle Investment Management and Nomura Asset Management.
The rest of Post’s portfolio will partially fund a shortlist search for Louisiana Municipal Police’s first bank loan manager, to run between $50 million and $55 million. The rest of that funding will likely come from cash, Ms. Rogers said.
That search follows creation of a 3% target allocation to bank loans in July 2013.
Investment consultant NEPC, which assists the pension fund in all searches, will bring a shortlist to the pension fund’s Nov. 19 board meeting, where finalists will likely be chosen, Ms. Rogers said.
