Los Angeles Fire & Police Pension System launched an asset allocation study at its board meeting Thursday.
Concurrent with that study, the board of the $13.2 billion fund will review whether to continue its hedge fund and private equity programs, currently with targets of 5% and 10%, respectively, and will review its roster of investment managers and eliminate or replace “marginal or underperforming investment managers,” for potential cost savings and greater investment returns, according to a new strategic plan adopted April 1.
The board also expects to incorporate risk and liquidity considerations into the asset allocation. System officials expect to complete their individual program reviews by Oct. 31 and complete the asset allocation study by Jan. 31.
Any decisions on manager changes would be implemented by June 30, 2011.
R.V. Kuhns, the system’s general consultant, is assisting.