Los Angeles City Employees' Retirement System renewed for one year its contract with Progress Investment Management to manage $41.3 million in an emerging manager-of-managers equity portfolio benchmarked to the Russell 3000 Index, said Linda Aparicio, spokeswoman for the $9.1 billion system.
The system originally invested $50 million with Progress in November 2006, which has been “challenged with investment underperformance due to poor manager selection,” according to a memo to the board from Daniel P. Gallagher, CIO. Since LACERS typically gives managers three to five years to prove themselves, staff recommended a one-year contract extension and negotiated a reduced management fee of 60 basis points, down from 68 bps.
