Los Angeles City Employees' Retirement System could issue an RFP for a general consultant later this year to test the marketplace, according to a memorandum to the board by Daniel Gallagher, the system's CIO.
The $8.2 billion system's current consultant, Pension Consulting Alliance, has been retained for one year; its contract was set to expire today.
The system had last searched for a general consultant in 2006, but the RFP resulted in only two respondents, according to the memo. Staff recommended another search “in view of the unprecedented decline in the financial markets and with changes in public funds.”
A decision and potential timetable for a search has not been set.
Separately, LACERS officials are considering adding a 3% real return asset class to improve the plan's returns as part of its ongoing asset allocation review. The board is also considering adding a 1% cash allocation to address liquidity risk, according to PCA recommendations.
The board also committed up to $20 million to TA Associates XI, a growth equity fund with a $3.5 billion target.