LACERA taps Grosvenor Capital for opportunistic credit
By Arleen Jacobius | December 11, 2012 3:58 pm
Los Angeles County Employees' Retirement Association, Pasadena, Calif., committed an additional $200 million to a customized hedge fund-of-funds portfolio managed by Grosvenor Capital Management focused on opportunistic credit, said David Kushner, chief investment officer for the $39.8 billion pension fund.
LACERA initially committed $250 million to Grosvenor in a customized fund-of-funds program, when it began its hedge fund program in October 2011, according to a recently released memo to the board of investments for its Nov. 5 meeting.
Separately, at its Wednesday meeting, the board of investments is expected to decide whether to approve a target allocation range for opportunistic strategies within the U.S. equity composite of zero to 5%.
The board of the $38.8 billion pension plan on Aug. 8 adopted a new asset allocation. No further information was available at press time.
In other scheduled action, the board is planning to determine whether to approve a staff plan to look for a manager to run a new hedge fund-of-funds mandate and expand into a direct hedge fund program.
The measure is designed to help the pension fund reach its 3% allocation target, which was raised from 1% in August. LACERA had 0.7% invested in hedge funds as of June 30.
The board also plans to decide whether to approve a commitment of up to $100 million to middle-market private equity fund Riverside Capital Appreciation Fund VI.
The board is also scheduled to approve the investment policy for the Other Post-Employment Benefit Trust, approved to be set up in June to hold and invest assets to pre‐fund the Retiree Health Program, which is a health insurance program and death benefits for retired employees and their dependents that LACERA administers.
The trust's investment policy, initially all in enhanced cash, would eventually mirror the investments of the pension plan, according to staff's proposal. The trust's asset allocation would be reviewed in six months as the trust evolves and there is clarity regarding asset size and cash flows.
On May 15, Los Angeles County had entered into a trust and agreement with the LACERA investment board to act as trustee and investment manager.