New Orleans City Employees' Retirement System hired BlackRock (BLK) and Grantham, Mayo, Van Otterloo & Co. to manage $15 million each in global tactical asset allocation portfolios, said Jesse Evans Jr., director, in an email.
The $375 million pension fund issued an RFP in April for its first GTAA managers; other finalists were J.P. Morgan Asset Management (JPM), Morgan Stanley (MS) Investment Management and Pacific Investment Management Co.
Funding will likely come from reductions in equity, fixed income and alternatives managers, Mr. Evans said. Specifics will be decided at future board meetings.
As of June 30, the actual allocation was 44.2% domestic equities, 18.2% core-plus fixed income, 14.9% international equities, 7.5% private equity, 5.8% real estate, 5.4% international fixed income, 2.8% hedge funds and 1.2% cash.
The pension fund's target allocation is 44% domestic equities; 20% core-plus fixed income; 14% international equities; 5% each hedge funds, international fixed income, private equity and real estate; and 2% cash reserves.
Investment consultant AndCo Consulting assisted.