Louisiana Teachers' Retirement System, Baton Rouge, will conduct five money manager searches and one investment consultant search in 2021.
The $21.1 billion pension fund's board on Thursday approved issuing solicitations for proposals throughout 2021 due to the expirations of the contracts of the incumbent managers and consultants, said Dana T. Brown, director of public markets.
Mr. Brown said the specific sizes of the portfolios have yet to be determined, but he provided managers' current portfolio sizes. All managers and consultants are invited to rebid.
The first SFP to be issued will be for active international small-cap equity managers after the board reviews and approves the document at its Jan. 7 meeting. Current managers Mondrian Investment Partners and Dimensional Fund Advisors, whose contracts both will expire March 31, currently run $282 million and $253 million, respectively. Proposals will be due Feb. 8, finalist interviews will take place April 8 and the board will make a selection April 9.
The pension fund is then due to issue an SFP for active emerging markets equity managers shortly after the Feb. 4 board meeting. Growth manager Harding Loevner and value manager Dimensional, whose contracts expire in 2021 on June 1 and Nov. 7, respectively, currently run a respective $547 million and $492 million. Proposals will be due March 8, finalist interviews will take place May 6, and a selection is set to be made May 7.
Shortly after its March 4 board meeting, the pension fund is then scheduled to issue an SFP for investment consultants for its defined benefit and defined contribution plans. Aon Investments USA is the current DB plan consultant, and Mercer is the current DC plan consultant. Both contracts will expire June 30. Proposals will be due on a yet-to-be-determined date in April. Finalist interviews are scheduled for June 3 and selections are expected June 4.
The next SFP to be issued shortly after the April 8 meeting will be for an active emerging markets debt manager. Western Asset Management, whose contract will expire March 1, 2022, currently runs $279 million. Proposals will be due May 10. Finalist interviews will take place July 8, followed by a selection July 9.
After that, the pension fund will issue an SFP following its June 3 meeting for active domestic large-cap growth equity managers. Morgan Stanley Investment Management and Mellon Investments, whose contracts are currently set to expire May 4 and April 6, respectively, currently run a respective $697 million and $557 million. Proposals will be due July 12. Finalist interviews will take place Sept. 9, followed by a selection Sept. 10.
Finally, the pension fund will issue an SFP for active global fixed-income managers following its Aug. 5 meeting. Current managers Brandywine Global Investment Management and Pacific Investment Management Co., both of whose contracts are currently set to expire Oct. 5, currently run $617 million and $593 million, respectively. Finalist interviews will take place Nov. 4, followed by a selection Nov. 5.
As of Oct. 31, the pension fund's actual allocation was 37.6% alternative assets and real estate, 26.5% domestic equities, 13% international developed markets equities, 8.4% global fixed income, 5.9% domestic fixed income, 4.9% emerging markets equities, 1.3% emerging markets debt, 1.1% global real estate investment trusts, 0.8% cash and 0.5% other investments.