Los Angeles City Employees' Retirement System plans to launch in February two RFPs totaling a little more than $1 billion: one for a high-yield and bank loan credit mandate and one for U.S. small-cap equities, according to sources close to the situation at the $16.5 billion pension fund.
The credit search will be for managers to run two mandates: $235 million each to high-yield credit and hybrid high-yield/bank loan credit. The domestic small-cap equities search will have three mandates: $178 million each to U.S. core, U.S. value and U.S. growth.
Separately, the LACERS board extended to March 31, 2020, the contract of Aegon USA Investment Management, which manages a $376 million active U.S. high-yield fixed-income portfolio. NEPC assisted.