Los Angeles City Employees’ Retirement System adopted a new real estate strategic plan, with new commitments of $50 million to core funds, a combined $90 million to $95 million to two to three value-added managers, $75 million to opportunistic managers and at least $20 million to international investments, confirmed Linda Aparicio, spokeswoman for the $10.7 billion system.
The system already invests in those strategies and though the new plan includes a preference for investing with the current roster of 36 managers, other managers could be hired, according to the strategic plan recommended by real estate investment consultant Courtland Partners. The system would invest with new managers only “if that manager offers exceptional talent/opportunity not available within the current LACERS roster,” according to the plan.
The plan also calls for increasing investment in open-end commingled funds, modestly decreasing exposure to closed-end commingled funds and using an external manager to run a separate account that would include the purchase of a new headquarters building for the pension fund.
Further information, including the size of the system’s current real estate allocation, was not immediately available.