Los Angeles County Employees Retirement Association, Pasadena, Calif., terminated a $430 million midcap growth equity portfolio managed by Putnam and will transfer the assets to a temporary index portfolio run by Barclays Global Investors. It will be benchmarked to either the Russell 2500 or Russell 2500 growth index, she added.
Eventually, staff of the $30.6 billion system may ask the board to approve a search for an active domestic small-cap to midcap growth equity manager to run the $430 million, said Lisa Mazzocco, principal investment officer for equities.
Putnam was terminated because the portfolio no longer fit with the funds objectives, she said.
Separately, the board added McKee Investment Management to the list of candidates in its search for one or more emerging fixed-income managers to run up to a total of $320 million. There are now 19 candidates, said Juan M. Almaguer, senior investment officer, fixed income.
Staff expects to bring a shortlist of finalists to the board by the end of September, he said.