Los Angeles City Employees' Retirement System hired EAM Investors for a $101 million active U.S. small-cap growth equity portfolio, replacing Franklin Advisers, minutes from the board's June 9 meeting show.
The portfolio will be benchmarked to the Russell 2000 Growth index. EAM was hired as a result of an RFP launched Nov. 10. Wilshire Associates, the pension fund's general investment consultant assisted.
Separately, Wilshire and the pension fund's staff are evaluating the feasibility of reducing active management following in the steps of $302.8 billion California Public Employees' Retirement System, Sacramento, the June 9 minutes show.
Rodney June, LACERS chief investment officer, told the board the pension fund already increased its allocation to indexed strategies as a cost-reduction measure, the minutes said.
General Manager Thomas Moutes said LACERS officials are also considering bringing some investment management in-house, which will require additional staff and the evaluation of investment staff compensation, the minutes said.