Louisiana Municipal Police Employees Retirement System, Baton Rouge, hired Orleans Capital Management to run about $50 million in active intermediate-term fixed income, said Benjamin Huxen II, executive director and general counsel, in an email.
The $1.9 billion pension fund issued an RFP in April following the approval in February of an increase in its target to core fixed income to 25% from 14%.
Mr. Huxen said the pension fund had decided to move to more "safe-haven assets" given where the pension fund believes we are in the current market cycle.
There was no incumbent intermediate-term manager. Garcia Hamilton & Associates and Loomis, Sayles & Co. were the other finalists.
Funding comes from cash, Mr. Huxen said.
Other target changes within fixed income in February were increases in emerging markets debt (local currency) to 5.5% from 4%, and decreases in targets to bank loans and high-yield bonds to 1.5% from 2% each.
In equities, the pension fund increased its target to domestic large-cap equities to 17% from 16% and lowered targets to international equities to 17% from 20%, emerging markets equities to 7.5% from 8% and domestic small/midcap equities to 7% from 8%.
In real assets, the pension fund kept core real estate at 8% and eliminated its 2% target to liquid real assets. As a result of the elimination of that latter target, the pension fund liquidated its $20 million investment with Energy Opportunities Capital Management.
In multiasset strategies, the pension fund kept its hedge fund target intact at 5% and eliminated the 6% target to global asset allocation. Private equity, in its own category, remains at its 5% target.
Investment consultant NEPC assisted with the search.