LOS ANGELES -- The $7.7 billion Los Angeles City Employees Retirement System board is modifying its $1.9 billion in domestic fixed income.
The board changed the benchmarks of three portfolios and shifted assets between a passive and active portfolio.
The changes were made to provide more representative market exposure.
Loomis, Sayles & Co. and Lincoln Capital Management Co., which manage active portfolios of $300 million and $680 million, respectively, now will be benchmarked to the Lehman Universal index. Loomis' previous bogey had been the Lehman Long Term Government Corporate, and Lincoln's, the Lehman Aggregate. The board also changed the benchmark of a $920 million passive portfolio managed by Lincoln, to the Lehman Aggregate from the Intermediate Government Corporate index.
Also, the board set the percentages for the active portfolios at 35% each and reduced the passive portfolio to 30%, transferring $380 million from Lincoln's passive portfolio to Loomis.