Los Angeles Fire and Police Pension System board members plan to interview five finalists for general consultant, including incumbent Pension Consulting Alliance, at their Dec. 9 meeting, said Michael Perez, general manager for the $12.7 billion system.
The other finalists are Consulting Services Group, Mercer, NEPC and R.V. Kuhns.
The system launched a search in July because PCA's contract expires April 1.
Separately, the board at its Nov. 5 meeting renewed the investment contract of Reams Asset Management for three years. Reams manages $574 million in an opportunistic fixed-income portfolio for the system; its current contract expires Nov. 30.
The board also renewed for three years its contract with Northern Trust Global Investments, which manages a $620 million Barclays Capital Aggregate Bond index fund. The system also will switch the commingled account to a separately managed account sometime before the end of the new contract. Its current contract expires Nov. 30.
PCA assisted with both renewals.
The system also changed its investment policy to give its new private equity consultant some discretion over private equity investments. The “discretion in a box” establishes an investment plan allowing the consultant to make commitments of $25 million or less that meet set criteria. The system is in the midst of a search for a new private equity consultant to replace Aldus Equity Partners, which it terminated in May after the SEC had filed charges against the firm and Saul Meyer, one of its founding principals, alleging a kickback scheme involving the investments of the $116.5 billion New York State Common Retirement Fund, Albany.
