Searches and Hires

Louisiana State Employees pledges $200 million, reports 9.5% FY return

Louisiana State Employees' Retirement System, Baton Rouge, made two new commitments totaling $200 million, spokeswoman Tonja Normand said in an email.

The $11.5 billion pension fund committed $125 million to DoubleLine Mortgage Opportunities Master Fund, a mortgage-backed securities fund managed by DoubleLine Capital, and $75 million to GoldenTree Distressed Fund III, a distressed debt fund managed by GoldenTree Asset Management. Both are existing relationships for LASERS; the pension fund hired both managers in February 2016 to run $200 million each in global multisector fixed income.

Separately, the pension fund announced a gross return of 9.5% for the fiscal year ended June 30. For the three, five and 10 years ended June 30, LASERS returned an annualized gross return of 7.4%, 8,4% and 7%, respectively. The pension fund returned a gross 15.8% for the fiscal year ended June 30. Benchmark information was not provided.

LASERS reported returns by broad asset class, reporting a gross return for alternatives at 11.9%, equities at 10.1% and fixed income at 2.6% for the fiscal year ended June 30.

As of that date, the actual allocation was 15.2% international large-cap equities, 14% domestic large-cap equities, 13.6% private markets, 12.7% emerging markets equities, 7.5% domestic small-cap equities, 6.8% risk parity, 6.7% absolute return, 5.7% international small-cap equities, 4.2% domestic midcap equities, 4% global multisector fixed income, 3.9% high-yield fixed income, 3.5% core fixed income, 1.7% emerging markets debt and 0.5% cash equivalents.