The Los Angeles Water and Power Employees' Retirement Plan board is considering allocating 1% of plan assets to hedge funds as part of its current 5% alternatives allocation. So far, the fund's only alternative investment is a $60 million private equity allocation. Fund officials are looking for one or more hedge fund-of-fund managers, said Sangeeta Bhatia, retirement plan manager for the $6.5 billion fund. Performance Consulting Associates will provide a list of firms from which fund officials are expected to make a selection by year's end.
The board also selected Glass Lewis as its first proxy voting adviser. Glass Lewis will be responsible for all of the fund's proxy voting and will review proxy guidelines as recommended by PCA. The duties had been handled internally.