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Los Angeles City Employees extends contracts of 3 equity managers

Los Angeles City Hall
Los Angeles City Hall

The Los Angeles City Employees’ Retirement System approved contract renewals for three managers.

The $15 billion pension fund renewed State Street Global Advisors’ contract to manage a $1.6 billion passive MSCI World ex-U.S. Investable Market index portfolio until June 30, 2022, according to minutes of it Jan. 24 meeting.

Contracts with Dimensional Fund Advisors to manage $313 million in active non-U.S. emerging markets value equity and Principal Global Investors to manage a $116 million active U.S. midcap core equity portfolio were both renewed through June 30, 2020.

Separately, the investment committee on Feb. 14 selected semifinalists in the system’s search for a private equity consultant — Cliffwater, incumbent Portfolio Advisors and TorreyCove Capital Partners. The staff will conduct further due diligence and is expected to recommend two finalists to the board for selection.

The staff also recommended to the investment committee that Hamilton Lane be included as a semifinalist but the committee removed the firm from the list because it has filed to go public.

“Hamilton Lane should not be considered,” said Nilza R. Serrano, investment committee and board member, during the meeting. “It will be a different company in a couple of months.”