Los Angeles Fire and Police Pension System is conducting a shortlist search for a manager to run $150 million to $175 million in REITs, and later this year it will look for a hedge fund-of-funds manager to run up to $100 million, said Tom Lopez, CIO. Both are new allocations; funding will come from cash.
Townsend Group, the plan's real estate consultant, will compile the REIT manager shortlist. The $12.2 billion fund has a 10% real estate target, and 7% of assets are now committed. Fund officials haven't set a timeline for making a selection.
Alternatives consultant Pension Consulting Alliance will assist the system in developing a hedge fund-of-funds investment policy. The system has a 10% alternatives target, of which four percentage points are invested. There is no timeframe for a search or selection.
Separately, system officials plan to select a new general manager by May 31. Gary Mattingly, the current general manager, will retire once his replacement is selected. The application deadline is April 4; further information is available on the system's website at www.lacity.org/pen. The system hired EFL Associates to assist with the search.