Police pension fund on the hunt for a new investment adviser

The Louisiana Municipal Police Employees’ Retirement System is on the hunt for a new investment consultant. Trustees for the $1.38 billion fund are conducting an invitation-only search, following personnel changes involving its current consultant, Segal Rogerscasey. The board has issued invitations to five investment consultant finalists that were interviewed during its last search in January 2011—including Segal Rogerscasey—as well as all firms currently doing business with any public retirement fund in Louisiana. Plans are to select finalists at the board meeting Jan. 16 and take a final vote on Feb. 20. MPERS continues to struggle with certain investments. A recent independent financial analysis of the fund by CPAs Duplantier, Hrapmann, Hogan & Maher shows its overall value declined by $39.4 million in the fiscal year that ended June 30. The largest percentage losses in the past year were in real estate investments—including Olde Oaks Golf Course, the market value of which fell nearly 43% to $1.72 million, and the Golf Club at Stonebridge, down 56% to $1.18 million. MPERS is now in the process of trying to sell the two courses after having spent nearly $16 million to purchase and improve them, as well as thousands of dollars over the years to cover operating expenses. The fund also lost money in the past fiscal year through its pooled bond fund and international marketable securities. Over the past five years, the actuarial value of the pension fund’s assets have fallen 13.6%, from $1.60 billion in 2008 to the current $1.38 billion. During that same five-year period, its unfunded accrued liability has grown from $240.3 million to more than $931.2 million. — Penny Font