Los Angeles City Deferred Compensation Plan is searching for active and passive equity and fixed-income managers to run the plan's core investment options with a total of $4.4 billion in assets.
The $7.2 billion 457 plan issued an RFP because it is considering using separate accounts and/or collective investment trusts in the lineup, said Steven Montagna, executive director, in an email.
Currently, the core lineup consists of five white-label funds with multiple underlying mutual funds: the DCP Bond Fund, DCP Large-Cap Stock Fund, DCP Mid-Cap Stock Fund and DCP International Stock Fund.
The RFP is seeking managers that offer separate accounts and CITs in the following asset classes: active core-plus fixed income, active emerging markets equities, active international developed markets equities, active international small-cap equities, active midcap and small-cap growth and value equities, passive domestic large-cap, midcap and small-cap equities and passive fixed income.
Mr. Montagna said the plan does not enter into direct contracts with mutual funds, and a search for mutual funds is occurring concurrently with this RFP process. Managers of mutual funds, both incumbents and potential new managers, need to update their information in the Mercer GIMD database and there is no bidding necessary.
The RFP is available on the city of Los Angeles' procurement website. Proposals are due at 3 p.m. PDT on Oct. 1. A selection will be made in the first half of 2021.