Los Angeles City Employees' Retirement System's board will decide at its Tuesday meeting whether to launch an RFP for one or more managers for a $68 million active multistrategy real assets allocation, board agenda materials for the $13.5 billion pension fund show.
Funding will come primarily from a reduction in exposure to domestic equity managers. The managers would tactically allocate assets among real asset strategies such as inflation-linked bonds, real estate investment trusts, commodities, gold and currencies, the agenda materials state.
If approved, the search would be scheduled to be launched no later than July 7, and pension fund officials expect a selection would be made in the fourth quarter. LACERS general investment consultant Wilshire Associates is assisting.
The board is also expected to decide whether to hire CEM Benchmarking for a benchmarking study, comparing investment management and administrative services costs and performance.
Separately, LACERS expects to launch an RFI for a proxy-voting agent in July and a bank custodian search in August, minutes from the board's June 10 meeting said. The due diligence could last up to three months due to the multiple services involved including master custody, securities lending, investment performance, analytical and integrated disbursement.
In other action, the board renewed for three years the contract of Loomis Sayles & Co. for a $1.2 billion actively managed core domestic fixed-income portfolio. The contract will now expire on July 31, 2017.
