The $6.2bn Louisiana State Employees Retirement System (LASERS) has removed a $600m US tactical asset allocation (TAA) mandate from Invesco and plans to make substantial changes to its asset allocation.
According to Robert Borden, the fund's chief investment officer, Invesco was dropped for performance reasons.” The fund was disappointed with returns from its TAA program in general. He said that Invesco was the second manager that the fund had dropped from its TAA mandate within the past eight years, Bankers Trust being the first.
Invesco's termination has prompted the fund to suspend its search for managers for its US and global TAA mandates. The mandates were worth a combined $670m. Borden said that LASERS is now considering several options, including TAA overlay, as part of a strategic plan at the fund. The strategic plan also includes a heavily revised asset allocation mix, he said.
Additionally, LASERS is looking for managers to run a $180m emerging market equity mandate and expects to allocate approximately $180m to the selected manager or managers. The closing date for proposals is July 9, 2001. Interested asset managers can contact either the fund or its consultant, Peter Gerlings, at New England Pension Consultants.
By Geoffrey Ho
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