Los Angeles City Deferred Compensation Plan will search for active and passive equity and fixed-income underlying managers to run a total of $4.2 billion in its five core menu funds before the end of the year, said Steven Montagna, chief personnel officer.
The $6.6 billion 457 plan will issue an RFP because of the requirement in its investment policy that the plan put the services up for bid every five years, Mr. Montagna said.
All incumbent managers will be invited to rebid, he added.
The funds, underlying managers and assets in the plan as of March 31, are:
- The DCP Large-Cap Stock Fund, with $2.3 billion in passive domestic large-cap equities managed by Vanguard Group;
- The DCP Mid-Cap Stock Fund, with $197 million in passive domestic midcap equities managed by Vanguard and $97 million each in active domestic midcap equities managed by Virtus Investment Partners and Voya Investment Management;
- The DCP Small-Cap Stock Fund, with $136 million and $121 million, respectively, in active domestic small-cap equities managed by Hartford Funds and Dimensional Fund Advisors, and $127 million in passive domestic small-cap equities managed by Vanguard;
- The DCP International Stock Fund, with $387 million in active international equities managed by MFS Investment Management, $101 million in active international small-cap equities managed by Brandes Investment Partners and $98 million in active emerging markets equities managed by Dimensional; and
- The DCP Bond Fund, with $289 million in active domestic core-plus fixed-income managed by Loomis Sayles & Co. and Natixis, and another $289 million in passive domestic fixed income managed by Vanguard.
The RFP will be posted before the end of 2019 at the City of Los Angeles' contractor website. A timeline for the RFP has yet to be determined.
Investment consultant Mercer is assisting.