PASADENA, Calif. — The Los Angeles County Employees Retirement Association reduced the passively managed investment range in its $7 billion international equity portfolio by 10 percentage points, said Juan Almaguer, the $34 billion fund's principal investment officer, public markets.
The new international equity allocation ranges are 30% to 50% passive, from 40% to 60%; 10% to 20% regional active, from 30% to 40%; and 30% to 50% non-U.S. active, from 15% to 30%.
Mr. Almaguer said the system made the changes to increase the portfolio's risk-adjusted profile. Staff will give the board an implementation plan in August detailing which mandates will be lowered and what new manager searches will be conducted, he said.
Barclays Global Investors manages a total of $4.5 billion in MSCI EAFE, EAFE/Europe only and emerging markets index portfolios. The fund's active international equity managers are Fidelity with $640 million; GAM USA, $520 million; Acadian Asset Management, $510 million; and Capital Guardian, $550 million in emerging markets and $230 million in EAFE.