Los Angeles Fire & Police Pension System’s board will restrict its external domestic small-cap equity managers, other than fund-of-funds managers, to purchase stocks up to $3 billion in market capitalization, up from the previous range of $1.5 billion to $2 billion, said Michael A. Perez, general manager.
The $12.2 billion system’s board made the change because the system’s small-cap growth manager, Frontier Capital, wanted more flexibility to buy stocks within the Russell 2000’s market-cap range of $1.7 billion to $2.8 billion in 2008, according to a staff report to the board.
Also, the Dow Jones U.S. Select Real Estate Securities index was selected as the system’s REIT benchmark, replacing the Dow Jones Wilshire RElT index. Dow Jones’ contract with Wilshire Associates to calculate and maintain the index expired March 31, and each company came out with REIT indexes.
The system’s current RElT managers, Morgan Stanley lnvestment Management and Principal Global Investors, agreed to be measured against the Dow Jones U.S. Select Real Estate Securities index, according to the staff report.