Allocates $535 million total to 5 managers
Louisiana Teachers' Retirement System, Baton Rouge, will conduct eight money manager searches in 2018, said Dana Brown, director of public markets.
The $18.7 billion pension fund's board approved the 2018 timeline for solicitations for proposals at its Dec. 1 board meeting. All SFPs are scheduled to be issued because of expiring contracts of incumbent managers; all managers are expected to be eligible to rebid. The timeline includes proposal due dates and finalist interview dates, if the board deems interviews necessary. Decisions take place on the days of the interviews.
Mr. Brown said the "AUM size for each mandate will be determined at the time the SFP is approved by the board." He did not name specific incumbent managers.
First, the pension fund will issue an SFP on Jan. 8 for active international equity managers. Proposals will be due on Feb. 5, and finalist interviews are scheduled for April 5. Baillie Gifford and LSV Asset Management were hired in 2013 to run $469 million and $496 million, respectively.
On Feb. 5, the pension fund will issue an SFP for active domestic smidcap core equity managers and an SFP for an active international large-cap growth equity manager. Proposals for both will be due on March 5 and finalist interviews are scheduled for May 3. In 2015, the pension fund hired Westwood Management and William Blair to split a $515 million active domestic smidcap core equity portfolio. The most recent hiring of an international large-cap growth equity manager could not be immediately learned.
The pension fund then will issue on March 5 an SFP for an active domestic small-cap value equity manager. Proposals will be due on April 9 and finalist interviews are scheduled for June 7. Fiduciary Management Associates was hired in 2013 to run $395 million.
The following month, on April 5, the pension fund will issue an SFP for a global high-yield fixed-income manager. Proposals will be due on May 7 and finalist interviews are scheduled for July 12. The pension fund in 2013 hired AllianceBernstein (AB) to run $325 million.
Then, the pension fund will issue an SFP on May 7 for an active domestic midcap growth equity manager. Proposals will be due on June 11 and finalist interviews are scheduled for Aug. 2. In 2013, the pension fund hired Voya Investment Management (then ING U.S. Investment Management) to run $175 million.
The pension fund is scheduled to issue an SFP on June 11 for active domestic large-cap value equity managers. Proposals will be due on July 6 and finalist interviews are scheduled for Sept. 6. The pension fund in 2013 hired Delaware Investments and LSV Asset Management to run $300 million and $850 million, respectively.
Finally, the pension fund will issue an SFP for a private markets manager on Aug. 6. Proposals will be due on Sept. 10 and finalist interviews are scheduled for Nov. 1. In 2013, the pension fund was scheduled to issue a similar SFP, but instead renewed its contract with Hamilton Lane.
Separately, the pension fund hired AllianceBernstein and T. Rowe Price Group to run a combined $350 million in active domestic small-cap growth equities, said Mr. Brown. The pension fund issued an SFP in September because AllianceBernstein's contract was expiring. AB was the sole manager; how the portfolio will be divided has yet to be determined, Mr. Brown said. Other finalists were Brown Advisory and Geneva Capital Management.
Investment consultant Aon Hewitt Investment Consulting will assist with all the searches in 2018 and assisted with the small-cap growth search.
Also, the pension fund committed up to $75 million to buyout fund Bridgepoint Europe VI. The pension fund previously committed $75 million to Bridgepoint Europe V in August 2014.
The pension fund also committed up to €50 million ($59.6 million) to Harbert European Real Estate Fund V, managed by Harbert Management. The pension fund previously committed up to $50 million to Harbert U.S. Real Estate Fund VI in December 2016.
Also, the pension fund committed up to $50 million to Sterling Value Add Partners III, a retail real estate fund managed by Sterling Organization. It is Louisiana Teachers' first commitment to a Sterling fund.