The Los Angeles City Employees' Retirement System's board on Tuesday approved issuing an RFP for a real estate consultant, said Wayne Ige, investment officer for the $9.1 billion system. The contract of incumbent Townsend Group expires June 30, but the board has extended it to Sept. 30. Townsend has been invited to rebid. The RFP is expected to be on the system's website at www.lacers.org on June 29. Proposals are due Aug. 10, and a selection is expected by Sept. 30. Currently, the system has $370 million invested in real estate.
The board also plans to eventually search for a global inflation-linked bond manager. No details have been finalized. The system's consultant, Pension Consulting Alliance, advised that the time isn't right for the search now because the market's too pricey, Mr. Ige said. Funding would have come from a $297 million Lehman Aggregate index account run by Lehman Brothers Asset Management; the board has extended that firm's contract for a year.
Separately, the board committed $5 to Acon-Bastion Partners II, a midmarket buyout fund.