Los Angeles City Employees' Retirement System board adopted a summary strategy and guidelines for alternative investments.
Under the new guidelines, the system added a commitment target that it set at 4%, or one percentage point above the target allocation. Currently, LACERS has $162 million committed to alternative investments with $60 million funded, said Dan Gallagher, CIO. A 3% allocation would equal $198 million.
A preliminary draft of the summary by the $6.6 billion system's alternative investments consultant, Pathway Capital, included an option that could have given Pathway full discretion when choosing investments for the system. That option was not included in the final draft that was adopted by the board.