LACERS relaunches searches for equity managers to run $1.6 billion
By Arleen Jacobius | January 15, 2013 4:07 pm
Los Angeles City Employees' Retirement System relaunched two RFPs for six or more international equities managers that would run a combined $1.61 billion, according to the RFPs.
The board for the $11.4 billion pension fund decided at its Nov. 27 meeting to amend the searches to relax certain “artificial” required manager track record qualifications for emerging managers, according to the minutes and other materials from that board meeting.
One RFP is for one or more active emerging markets equity managers to run a total of $664 million in one or more of three long-only emerging markets equity investment strategies: core emerging markets ($158 million), value emerging markets and growth emerging markets ($253 million each). The strategies must be benchmarked against one of the three following indexes: MSCI Emerging Markets index, MSCI Emerging Markets Value index or the MSCI Emerging Markets Growth index.
The other RFP seeks at least three managers for active core, growth and value non-U.S. developed-markets equities benchmarked to either MSCI EAFE or World ex-U.S.
Both RFPs are available on the LACERS website. Responses are due Jan. 31. Officials expect for each search to hire three or more investment managers with at least one manager selected for each of the three style mandates, including core, growth and value.
The board amended its searches because no emerging manager within general investment consultant Wilshire Associate's database participated in the investment manager search that closed in August. The new search process could be completed as early as in April.
Separately, the board committed up to $15.9 million to SSG Capital Partners II, a special situations fund managed by SSG Capital Management, according to a memo to the board for its Jan. 8 meeting. The fund's target is $400 million and expects to invest in companies in which the owners or creditors are under some financial stress, primarily in China, India and Indonesia.
This is LACERS' first investment with SSG Capital Management. Private equity consultant Hamilton Lane made the commitment through its discretionary mandate.