The Los Angeles County Employees Retirement Association, Pasadena, Calif., plans to increase the fund's active international equity exposure next year by adding one or more active international managers to run up to $1.5 billion in total assets, said Lisa Mazzocco, CIO of the $34 billion system. Funding is expected to come from the system's $4.2 billion EAFE index portfolio. Further details have not been determined, she said.
The board on Wednesday also selected Wilshire Associates and Mercer Investment Consulting as finalists in its search for a general consultant, Ms. Mazzocco said. The board is expected to make a selection in September. Incumbent Russell Investment Group was invited to rebid.
Separately, the board committed $10 million to Bertram Growth Capital I, a private equity fund.
The board also revised the system's custom composite fixed-income benchmark, reducing the high-yield portion to 9% from 11%. In addition, it changed the benchmarks for active international managers Capital Guardian Trust, which runs $225 million, and Acadian Asset Management, which runs $500 million, from the MSCI EAFE index to MSCI EAFE plus Canada, Ms. Mazzocco said. The board also decided to transfer $320 million to a new Canada-only index fund run by Barclays Global Investors from the $4.2 billion EAFE index fund, also run by BGI, she said.
Finally, the board expanded a $384 million hotel portfolio run by Cornerstone Real Estate Advisers to include both core and non-core properties. The board has not determined whether it will also increase Cornerstone's mandate.