Los Angeles City eyes private credit manager search

Los Angeles City Employees Retirement System officials plan to launch a search for one or more private credit managers to run a new $670 million mandate, according to sources with knowledge of the retirement board's action.

The search follows the $17.8 billion pension plan's adoption of a new asset allocation in April and an implementation plan in August. The mandate's benchmark is the Credit Suisse Leveraged Loan index plus 200 basis points.

Pension officials plan to launch an RFP in November. NEPC, the system's general investment consultant, also will screen its database for a list of potential candidates. LACERS staff and NEPC plan to develop a list of semifinalists in January and the board is expected to make selections in April.

Separately, the board Tuesday extended the contract of AJO, which manages a $184 million active large-cap value equity portfolio, for one year to Oct. 31, 2019. LACERS had placed AJO on watch for performance in July 2016 but the firm has shown progress toward compliance with LACERS monitoring policy, according to board materials.