Los Angeles County Employees Retirement Association trustees will consider this month whether staff should further pursue moving the management of some of the $27 billion funds indexed assets in-house.
Barclays Global Investors manages $8.5 billion in passive equity in S&P 500, Russell 1000 Value, MSCI EAFE, EAFE-Europe and Lehman Aggregate funds. The board is scheduled to consider at its March meeting a proposal allowing staff to transfer in-house an S&P 500 portfolio of $500 million to $1 billion.
Although the system expects internal management to be more expensive, it said staff would benefit from the staff-development opportunities internal management would present. Moreover, internally managing assets provides a backup manager if BGI encounters serious organizational problems, staff noted.