Los Angeles City Employees Retirement Systems board today hired Batterymarch Financial Management to run $130 million in emerging markets equities, according to a source close to the $10.95 billion system. A search was launched in June. Funding would come from decreasing Boston Co.s non-U.S. equities portfolio to $190 million, with the balance coming from trimming the $543.5 million active European equities portfolio managed by Capital Guardian.
Separately, the board reinstated Marvin & Palmer as manager of $100 million in active international core equities. The board had decided to terminate the firm in June 2007 but postponed redeploying the assets, pending the adoption of a new non-U.S. equity allocation. The manager outperformed its benchmark by 1,640 basis points for the year ended March 31.
The board also committed $10 million each to private equity funds Element Partners II and NGEN Partners NGEN III, and $5 million to StarVest Partners II.
Separately, the board broadened the mandates of Thomson, Horstmann and Bryants $320 million active small-cap core equity portfolio and Aronson + Johnson + Ortizs $450 million active large-cap value equity portfolio to allow the managers to use 10% of their existing portfolios in 130/30 strategies.