The Los Angeles County Employees Retirement Association, Pasadena, Calif., selected Goldman Sachs Asset Management and Principal Global Investors to manage $500 million each in domestic core-plus fixed income, said Juan M. Almaguer, principal investment officer, public markets, for the $35.2 billion plan. Funding will come from cash and reducing an $880 million Lehman Aggregate bond index fund managed by Barclays Global Investors; amounts have not been determined.
The board also selected finalists in its search for two to three domestic enhanced equity index managers to run a total of $1 billion, Mr. Almaguer said. The finalists are Goldman Sachs Asset Management, INTECH and Twin Capital Management, which offer stock-based strategies, and PIMCO and Western Asset Management, which offer synthetic strategies. The number of managers to be hired and portfolio sizes will be determined at the board's Oct. 11 meeting. Funding would come from reducing several equity index funds managed by Barclays Global Investors.
Separately, the board increased the maximum size of future emerging private equity manager investments to $30 million each, from $10 million, said Christopher J. Wagner, senior investment officer, private equity. Currently, the association has a $25 million emerging manager private equity portfolio; its target allocation is 3.5% of the association's $2.1 billion private equity portfolio.