Louisiana State Employees’ Retirement System, Baton Rouge, hired DoubleLine Capital and GoldenTree Asset Management to run $200 million each in global multisector fixed income, said Robert W. Beale, chief investment officer, in an e-mail.
The $9.9 billion pension fund conducted a shortlist search as a result of the creation of a 4% target to global multisector/credit, renamed from the pension fund’s previous 2% opportunistic credit target.
The other finalists were Marathon Asset Management and Neuberger Berman.
Funding for the new allocation, as well as increases in the private equity target to 14% from 13% and international small-cap equity target to 5% from 3%, comes from reducing targets to domestic large-cap equity to 14% from 15% and domestic small-cap equity to 7% from 8%, and eliminating the 3% real assets/commodities target. The pension fund previously terminated commodities managers Gresham Investment Management and Pinnacle Asset Management, as well as Thomson Horstmann & Bryant from a $130 million domestic small-cap equity portfolio, as part of the allocation changes.
Investment consultant NEPC assisted.
Randy Diamond contributed to this story.