Los Angeles County Employees Retirement Association increased the target range for its global equity emerging manager program and hired two new managers to provide separate account services for the program.
In a closed session at its Oct. 12 meeting, the $71.2 billion retirement association's board hired NewAlpha Asset Management and Leading Edge Investment Advisors to run a total of up to 10% of the global equity portfolio, the pension plan reported.
The selection was made following an RFP search launched in May.
The two firms will providing manager sourcing and selection for a portfolio of approximately five to 10 emerging managers, the RFP showed.
LACERA had 31.4% of its total plan assets invested in global equity as of Aug. 31.
Also at its Oct. 12 meeting, the board increased the target allocation range for the global equity emerging manager program to 0%-10% from 0%-5% of the global equity portfolio, said Jonathan Grabel, CIO of the Pasadena, Calif.-based pension plan, in an email.
The board increased the range so that it could make larger allocations to global equity emerging managers with differentiated strategies, possibly improving portfolio returns, according to a staff memo.
Before the increase, LACERA had one global equity emerging manager with an $81 million portfolio.
