New Orleans Sewerage & Water Board hired Mellon Investments to manage $7 million each in passive emerging markets equities and passive international small-cap equities for its $218 million defined benefit plan.
The board of trustees voted to hire the manager for both portfolios at its June 21 meeting, a webcast of the meeting showed.
Funding comes from a reduction in an active international large-cap core equity portfolio managed by EARNEST Partners, leaving it with about $38 million.
The hiring is the latest step in the implementation of a new asset allocation originally approved in November 2021 that included a recommendation to add additional diversification in the international equity portfolio to include passive emerging markets equities and passive international small-cap equities.
As of May 31, the actual allocation to international equities was 24.1%; the target is 21%.
Investment consultant Marquette Associates assisted.