Los Angeles City Employees' Retirement System hired Wasatch Advisors for a $230 million active emerging market small-cap equities mandate, Rodney June, CIO of the $19 billion pension plan, said Tuesday.
LACERS launched an RFP on June 10, 2019, for a manager to run a separately managed account. LACERS general investment consultant NEPC assisted in the search.
Separately, the board changed the benchmark for Axiom International Investors, which manages $464 million in active emerging markets growth equities, to the MSCI Emerging Markets index from the MSCI Emerging Markets Growth index. It also extended Axiom's contract for one year until Dec. 31. Axiom is currently on watch for underperformance relative to the benchmark.
The MSCI Emerging Markets Growth index is highly concentrated in three stocks, which collectively represent about 34% of the index, which drives benchmark performance and increases risk, a staff report to the board said. In response, staff and NEPC recommended switching to a more diversified benchmark.