Louisiana Municipal Police Employees Retirement System, Baton Rouge, hired Hotchkis & Wiley Capital Management to run about $46 million in high-yield fixed income, said Benjamin Huxen II, executive director and general counsel, in an email.
The $2.1 billion pension fund issued an RFP in May following the termination of Guggenheim Investments from a similar portfolio. Investment consultant NEPC had recommended the termination at the pension fund's May 16 board meeting due to a non-public Securities and Exchange Commission investigation that made it "difficult for NEPC to monitor the fund," which led to the recommendation, meeting minutes said. Assets were temporarily parked in a high-yield exchange-traded fund managed by State Street Global Advisors.
Other finalists were Barings and Columbia Threadneedle Investments.
As of Aug. 31, the pension fund's actual allocation to fixed income was 22%.
NEPC assisted with the search.