Los Angeles Fire & Police Pensions adopted a new asset allocation, increasing private equity by 2 percentage points to 14%, adding a 2% private credit allocation and reducing commodities by 4 percentage points to 1%, said Ray Ciranna, general manager of the $24.9 billion pension plan, in an email.
The new asset allocation is expected to lower the volatility of its total portfolio. "We anticipate that the changes will occur slowly over the coming year as the board still needs to make a number of decisions and develop an implementation plan to effectuate the overall changes," Mr. Ciranna said.
The asset allocation retains the remaining target allocations: 29% to broad U.S. equities, 21% broad international equities, 12% U.S. aggregate fixed income, 10% real estate, 5% TIPS, 3% high yield fixed income, 2% unconstrained fixed income and 1% cash equivalents.
