Los Angeles County Employees Retirement Association, Pasadena, Calif., will require external money managers hired by the board to disclose the placement agents they employ and their fees under the $30.5 billion systems new policy, said CIO Lisa Mazzocco.
Managers must also disclose whether the placement agent is registered with a regulatory agency.
The policy also requires managers to assure the association that the fee will not be paid by the association or the limited partnership fund, and that no LACERA board members, employees, consultants or their immediate family members are employed or paid by the placement agent firm.
Also, prospective managers must identify the current or former association board members, employees or consultants who suggest retaining a placement agent.
LACERAs current external managers are not affected by the new rule.