Los Angeles City Employees' Retirement System hired PGIM and Wellington Management to manage a total of about $800 million in active emerging markets debt, said Rodney June, CIO of the $19.4 billion pension plan, in an email.
Staff anticipated the total will be split evenly between the two managers, but the board gave staff discretion to change that due to possible constraints on Wellington's strategy. Funding will be from PGIM's existing $440 million emerging markets debt hard currency portfolio and rebalancing of other asset classes.
The selection was made following an RFP launched in June 2019. General investment consultant NEPC assisted.
Separately, LACERS amended its proxy voting policy to support increasing the number of women on corporate boards. LACERS will now vote against or withhold votes for the chair of the nominating committee of a company if there are no women on the board unless there is a firm commitment, with measurable goals, to achieve gender diversity by the following year.