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.
Current managers are invited to rebid. The RFPs will be posted on LACERS' website. Selections are expected as early as June. LACERS' general investment consultant, NEPC, is assisting.
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.
