Los Angeles City Employees’ Retirement System cut its target fixed-income allocation to 27% of plan assets, from 31%, and increased private equity and real estate to 7% each, from 5%. The board for the $6 billion fund trimmed the portfolios of active domestic fixed-income managers Loomis Sayles and Lincoln to $572 million each.
Separately, the board put Loomis Sayles on probationary status, with a formal review in six months, due to the retirement of portfolio manager Kent Newmark at the end of this year. It also renewed its contract with INVESCO Realty Advisors, which runs a portfolio with a target of $100 million real estate equity.
