Los Angeles County Employees Retirement Association, Pasadena, Calif., slightly increased its equity and commodities allocations and trimmed fixed income as part of a new asset allocation, said Lisa Mazzocco, CIO of the $31.1 billion association.
Equities, which also was changed to a single global portfolio from separate domestic and international portfolios, was increased by a percentage point to 52% of total assets. Commodities also was increased by a percentage point to 3%, while fixed income was trimmed by two percentage points to 26%. Target allocations remaining unchanged are real estate, 10%, private equity 7% and cash 2%.
It is not known if the allocation changes will lead to changes in external managers.
The association also increased its active U.S. equity emerging manager range to 0 to 5% of the total equity portfolio from 2% to 4% to give the system additional flexibility in making changes or hires, Ms. Mazzocco said. The association currently has $260 million in equities managed by active domestic emerging managers.
Staff was given discretion to vary the association's submanager selection criteria for its U.S. equity emerging manager mandates on a case-by-case basis. No searches are currently scheduled, she said.
The asset allocation changes were made following an asset-liability study, Ms. Mazzocco said. Wilshire Associates, the system's general consultant, assisted.
Separately, Goldman Sachs was hired to provide agency-based securities lending services for the association's domestic equity and corporate bond portfolios. Goldman Sachs had provided only principal lending services.