Los Angeles City Employees' Retirement System expects to initiate four searches in the near future.
One search would be for a manager-of-emerging managers to run up to $75 million in small-cap equity and could be launched as early as June 9, according to materials on the $13.5 billion pension fund's website.
LACERS' general investment consultant Wilshire Associates is assisting.
LACERS would launch the search because it is switching to small-cap equity manager-of-emerging managers from mid- to large-cap.
LACERS currently has three manager-of-emerging managers: Attucks Asset Management, Capital Prospects and Progress Investment Management Co. Capital Prospects and Progress would be required to bid for the new allocation because their current strategies are large- and midcap equities. Attucks would not be required to rebid because its current $46 million portfolio is in small-cap equities and Attucks is in “good standing” as defined by LACERS manager monitoring policy.
Other searches under consideration are for a multiasset real asset manager, a proxy-voting agent and a custodian. No further information was available by press time.
Separately, LACERS committed up to $10 million to Blue Sea Capital Fund I, a lower-middle-market buyout fund, according to a notification to the board.
LACERS' private equity consultant Portfolio Advisors made the discretionary commitment.
The board also approved Wilshire's recommendations to reduce its 34% U.S. equity exposure, which was more than its 24% target allocation, by seven percentage points to fall within the upper bands of the target allocation range of 19% to 29%. About six percentage points of the reduction would be allocated to the international equity portfolio and about one percentage point of the reduction allocated to the credit opportunities portfolio, bringing international equity to 29.1% and credit opportunities, 2.5%. LACERS also amended its investment policy and alternative investments policy to specify that future private equity allocations will be funded by reductions in U.S. equities.
