Louisiana Teachers’ Retirement System, Baton Rouge, hired Morgan Stanley Investment Management to run about $500 million in active domestic large-cap growth equities, said Dana Brown, director of public markets.
The $16.3 billion pension fund issued a solicitation for proposals in February for managers to split the $1 billion portfolio managed by Boston Co. Asset Management and Brown Advisory. Boston Co. was rehired last month to continue running its $500 million portion of the portfolio.
For the other half, Brown Advisory rebid for the services and was a finalist along with Loomis Sayles & Co.
Separately, the pension fund rehired Dimensional Fund Advisors, and named Baillie Gifford, Harding Loevner and Schroder Investment Management as finalists to evenly split a $650 million active emerging markets equity portfolio. Finalist presentations followed by a decision will take place at the pension fund’s June 2-3 board meeting.
The pension fund conducted an expedited invitation-only search earlier this year due to the announcement by second incumbent Vontobel Asset Management that Rajiv Jain, co-CEO and CIO, would be leaving the firm in May. The pension fund had originally intended to issue an open solicitation for proposals this summer because Dimensional and Vontobel’s contracts were due to expire later this year. Vontobel did rebid for the services.
Investment consultant Aon Hewitt Investment Consulting assists with all searches.
Also, the pension fund committed up to $125 million to GSO Capital Opportunities Fund III, a mezzanine debt fund managed by GSO Capital Partners, the credit-oriented division of Blackstone Group. The pension fund previously committed up to $75 million to GSO Energy Select Opportunities Fund in May 2015.
Finally, the pension fund hired Hancock Agricultural Investment Group to manage a $75 million agricultural separate account.
