Louisiana Teachers’ Retirement System, Baton Rouge, will conduct five searches for money managers in 2017, said Dana Brown, director of public markets, in an e-mail.
The $16.9 billion pension fund’s board at its meeting on Dec. 2 approved a timeline of solicitations for proposals due to current managers’ contract expirations; all will be invited to rebid. Exact amounts of the searches will be determined when the SFPs are drafted, Mr. Brown said.
First, the pension fund will issue an SFP for an active emerging markets debt manager following board approval at its Jan. 5 meeting, with a due date of Feb. 6. A decision is expected on April 7. The pension fund hired Western Asset Management to run up to $300 million in active emerging markets debt in 2012, its first exposure to the asset class.
An SFP for a domestic core fixed-income manager will follow, shortly after board approval at its Feb. 2 meeting, with a due date of March 6. A decision is expected on May 5. The pension fund hired Prudential Fixed Income to manage $400 million in 2012.
The pension fund will then issue an SFP for a domestic core-plus fixed-income manager following board approval at its May 4 meeting, with a due date of June 5. A decision is expected on Aug. 4. The pension fund hired Loomis Sayles & Co. to manage up to $400 million in 2012.
Then, the pension fund will issue an SFP for a real estate investment trust manager, following board approval at its June 1 meeting, with a due date of July 3. A decision is expected on Sept. 8. Information on the current REIT manager was not available.
The last search of 2017 will take place in September, when the pension fund issues an SFP for an active domestic small-cap growth equity manager. Current manager AllianceBernstein was hired in 2013 to run up to $250 million. Board approval for the SFP is expected at its Sept. 7 meeting, and the due date will be Oct. 9. A decision is expected on Dec. 1.
The current size of each manager’s portfolio could not be learned by press time.
Investment consultant Aon Hewitt Investment Consulting is assisting with all searches.
Separately, the pension fund committed up to $75 million to Crow Holdings Realty Partners VIII, a real estate fund managed by Crow Holdings Capital. The pension fund previously committed $50 million to Crow Holdings Realty Partners VII in 2015.
The pension fund also committed up to $50 million each to private debt fund Benefit Street Partners IV and Harbert U.S. Real Estate Fund VI, managed by Harbert Management. Both are first-time commitments for the pension fund.