Los Angeles County Employees Retirement Association’s board approved an emerging managers implementation strategy for fixed income, and in about a month the fund expects to issue RFIs for a manager to run about $150 million. The board for the $32 billion system in December expanded its emerging manager policy to include real estate, fixed income and alternative assets in addition to equities. At that time, it asked staff to submit implementation strategies for each asset class to the board for approval.
The fixed-income search will be conducted internally with the help of consultant Frank Russell. The RFI will consist of a questionnaire to determine which managers meet the fund’s criteria, including performance and investments that fit the structure of the system’s $9 billion fixed-income portfolio, said Juan M. Almaguer, senior investment officer for fixed income. The first phase of the process, including the RFI, should be completed within the next three months, he said, after which staff will choose a shortlist of managers for the formal search process.