Los Angeles City Employees Retirement System LACERS

1
Los Angeles City Employees Retirement
System-LACERS-

• Emerging Managers Program
• Allan Emkin, PCA
• October 6, 2005

2
Implementation Plan

• Components for a successful program
• Statement of Purpose
• Staffing
• Intent to Develop and Maintain Program Resources
• Intent to Implement
• Accountability
• Tracking and Monitoring
• Communications Protocol among the parties

3
Implementation Plan

• Statement of Purpose
• To support the development of new and innovative
  initiatives in securities brokerage that will
  enlarge the landscape of providers, while
  providing increased opportunities for new firms.
• To support and promote competition among
  brokerage firms.
• To contribute to industry best practices
  regarding the engagement of new and innovative
  trading strategies and firms.

4
Implementation Plan

• Staffing
• Review and analyze trading patterns
• Maintain open dialogue with managers and brokers
  regarding communication protocol and specific
  manager requirements
• Track filing protocol for reports and broker
  information
• Schedule forums and other such initiatives.

5
Implementation Plan

• Intent to Develop and Maintain Program Resources
• Continue to identify firms.
• Maintain up-to-date information on firms.

6
Implementation Plan

• Intent to Implement
• Develop understanding and language for investment
  managers, stating LACERS intent to implement and
  track, based on best practices and subject to
  best execution
• Establish standards for business executed through
  firms
• Actual business executed with firms
• Verification of manager attempts to trade with
  firms
• Measures to improve manager participation and
  compliance.

7
Implementation Plan

• Accountability
• Develop quarterly tracking procedures regarding
  trading activity
• Develop schedule of manager/brokerage forums to
  encourage exchanges between LACERS, LACERS
  managers and LACERS brokers.
• Develop mechanisms for tracking best execution
  capabilities of the brokers

8
Implementation Plan
A sample report
9
Implementation Plan

• In Conclusion
• Components for a successful program
• Statement of Purpose
• Staff
• Intent to Develop and Maintain Program Resources
• Intent to Implement
• Accountability
• Tracking and Monitoring
• Communications Protocol among the parties