Louisiana Municipal Police Employees Retirement System, Baton Rouge, created a target to diversified multisector fixed income, raised its overall target allocation to equities, and reduced targets to core fixed income and core real estate.
The $2.6 billion pension fund's board approved the changes at its meeting Wednesday following the recommendation of investment consultant NEPC to increase its equity exposure to be more in-line with NEPC's equity market values, said Benjamin Huxen II, executive director and general counsel.
Within its overall equity allocations, the pension fund increased targets to domestic large-cap equities to 20% from 17%, domestic smidcap equities to 10% from 8% and emerging markets equities to 9.5% from 8.5%, while the target to international equities was reduced to 16% from 18%.
Within fixed income, the pension fund created a new 11.5% target to diversified multisector fixed income and reduced the target to core fixed income to 11.5% from 25% and the target to emerging markets debt (local currency) to 4.5% from 5.5%. The target to high yield remains unchanged at 3%.
Within alternatives, the target to core real estate was reduced to 7% from 8% and the target to private equity remains unchanged at 7%.
The current actual allocation is 23.7% core fixed income, 19.9% international equities, 19.1% domestic large-cap equities, 8.7% domestic smidcap equities, 8.6% emerging markets equities, 6.9% core real estate, 4.7% emerging markets debt (local currency), 4% private equity, 3.5% high yield and the rest in hedge funds.
No manager terminations are scheduled.
Separately, the board named finalists in the shortlist search for a private equity manager to run a $215 million customized private equity fund of one portfolio, Mr. Huxen said. Adams Street Partners, HarbourVest Partners and Portfolio Advisors are scheduled to make presentations at MPERS' April 21 board meeting, with a decision expected shortly thereafter.
