Louisiana Teachers' Retirement System, Baton Rouge, rehired Morgan Stanley Investment Management to run about $700 million in active domestic large-cap growth equities, said Dana T. Brown, director of public markets.
The $26.9 billion pension fund issued a solicitation for proposals in June for two large-cap growth managers to run $700 million each due to the pending expiration of the contracts of Morgan Stanley and other incumbent Mellon Investments.
The pension fund's board at a Sept. 9 meeting voted to retain Morgan Stanley and named Baillie Gifford & Co., J.P. Morgan Asset Management and T. Rowe Price Group as finalists for the other portfolio. The three firms will make presentations at the board's meeting scheduled for Oct. 7-8.
Mr. Brown said Mellon Investments did rebid for the services.
As of June 30, the pension fund's actual allocation to domestic equities was 26.7%.
Investment consultant Aon Investments USA is assisting.
Separately, the board at its Sept. 9 meeting approved commitments of up to $100 million to Ares Special Opportunities Fund II, an opportunistic private credit fund managed by Ares Management; up to $75 million each to middle-market special situations fund Clearlake Capital Partners VII, managed by Clearlake Capital Group, and to growth equity fund Summit Partners Growth Equity Fund XI; up to $50 million to Lion Industrial Trust, an open-end industrial real estate fund managed by Clarion Partners; and up to $50 million to Insight Partners XII and $10 million to Insight Partners XII Buyout Annex Fund, both growth equity funds managed by Insight Partners.
As of June 30, the pension fund's actual allocation to alternative assets and real estate was 39.8%.
Finally, the board rehired Mercer as investment consultant for the $2.7 billion 401(a) plan it oversees. The board had issued an SFP in June due to the pending expiration of that firm's contract. There were no other finalists.
