Louisiana School Employees’ Retirement System, Baton Rouge, is conducting an invitation-only search for an active international value equity manager to run $80 million, said Christopher Saik, chief investment officer.
The search is the result of the $1.8 billion pension fund changing the structure of its international equity portfolio to a “core-satellite” structure from “kind of a grab-bag allocation,” Mr. Saik said.
Funding will come in part from the termination of EARNEST Partners, which ran a $60 million active international core equity portfolio. Mr. Saik said the termination was due solely to the change in portfolio structure and not performance.
Funding will also come from the termination last September of Thornburg Investment Management, which ran $80 million, due to underperformance; Thornburg spokeswoman Rebecca Carrier said at the time that the company does not comment on client decisions.
Investment consultant Segal Rogerscasey is compiling a shortlist, and finalists will likely be interviewed sometime in April, Mr. Saik said, with a decision expected shortly Rogerscasey is compiling a shortlist, and finalists will likely be interviewed sometime in April, Mr. Saik said, with a decision expected shortly thereafter.
Assets are parked in an EAFE index fund managed by Mellon Capital Management. Mr. Saik said the remaining $60 million will stay in that index fund as part of the core satellite structure.