Giant LA fund wants UN PRI signatory for emerging markets mandate

Fund managers should consider becoming a signatory or incorporating principles

The $36.6bn (€28.2bn) Los Angeles County Employees Retirement Association (LACERA) is seeking a UN Principles for Responsible Investment signatory firm to manage an active emerging markets equity mandate.

Pasadena-based LACERA, which signed up to the PRI in November 2008, is calling on prospective investment managers to “consider becoming a UN PRI signatory and/or incorporating these principles into the firm’s investment process”.

Firms are encouraged to back the PRI “as long as making such a commitment is consistent with your fiduciary responsibilities and does not result in any additional costs”.Prospective managers must have at least $600m in the asset class and a minimum seven-year track record. LACERA also wants a firm that conforms to Global Investment Performance Standards (GIPS) for performance reporting.

The tender, which closed this week, says the mandate will be benchmarked to the MSCI Emerging Markets (Net) Index. Although mandate size was not disclosed, managers were asked to quote a fee proposal for a $200m account.

LACERA’s portfolio consists of 50% in US and non-US public equities, 10% in private equity, 26% in domestic fixed income, 10% in real estate, 3% in commodities, and 1% in hedge funds. Link to RFP