Los Angeles City Employees’ Retirement System hired Quantitative Management Associates and Axiom International Investors for a combined $411 million in emerging markets equities and Prudential Fixed Income for $200 million in active emerging markets debt, according to minutes for the $12 billion pension fund’s July 23 meeting.
Axiom will actively manage a $253 million emerging markets growth equities strategy benchmarked to the MSCI Emerging Markets Growth index, and QMA will run $158 million in core emerging markets equities benchmarked to the MSCI Emerging Markets index.
Both managers were hired following an emerging markets equity search launched July 23, 2012, and a revised search launched Dec. 10, 2012, with relaxed minimum qualifications.
Prudential Fixed Income’s portfolio will be benchmarked to the J.P. Morgan EMBI Global Diversified index. Prudential’s selection followed a search launched March 8. LACERS general investment consultant Wilshire Associates assisted with both searches.
Further information, including funding, was unavailable at press time.
Separately, LACERS committed up to $20 million in middle-market mezzanine fund Levine Leichtman Capital Partners V, according to documents on the pension fund’s website. The fund has a fundraising target of $1.5 billion. LACERS committed $20 million each to Levine Leichtman Capital Partners III and Levine Leichtman Capital Partners IV.
