Los Angeles Fire & Police Pension System renewed fixed-income manager Loomis Sayles & Co's contract to manage a $613.5 million long-duration government credit portfolio for another three years ending Sept. 30, 2018, said Ray Ciranna, general manager for the $19 billion pension fund, in an e-mail.
The renewal is subject to successful contract negotiations. The board renewed Loomis Sayles' contract following a due diligence process. No RFP was issued. The Loomis Sayles portfolio decreased by about $15 million during the review period of Oct. 1, 2012, to June 30 mostly due to monthly income withdrawals totaling about $61.6 million. However, over the last three years, Loomis Sayles' performance was “solid,” its returns since inception have been good and its current fees are among the lowest of the pension fund's managers, a staff report said. General investment consultant RVK assisted.
Separately, the board at its Aug. 20 meeting voted to enhance its current private equity management fee reporting processes. This could include asking managers for additional information on fund expenses and verifications of carried interest. The staff will report back to the board at a future date with options and recommendations on auditing and verifying management fees and carried interest, Mr. Ciranna said.
