The Los Angeles Water & Power Employees’ Retirement Plan was presented with two RFP recommendations at the August 23 board meeting.
It was recommended that an RFP for a second unconstrained global equity manager be issued. An RFP to evaluate replacements for LA Capital, the existing emerging markets equity manager, was also recommended.
The RFP recommendations stem from a review of the Global Equity portfolio. Investment consultant, RVK, has recommended long-term target allocation that would provide broad exposure similar to the MSCI All Country World Investable Market Index, include active management in segments of the market that offer alpha opportunities, provide exposure to active management, include meaningful levels of passive management, and reduce total management fees. The recommended target allocation would decrease International Large Cap Active to 15% from 20%, and increase the Global unconstrained target to 10% from 4%.
The LA Capital Emerging Markets Equity mandate has been on the watch list since 2019. The market value of the account was approximately $468 million as of June 30, 2023.
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Written By: Koncheng Moua, Director of Data Management and Strategy
Koncheng Moua is the Director of Data Management and Strategy at Dakota.