Los Angeles City Employees' Retirement System added new allocations of 5% each to credit opportunities and real assets, Linda Aparicio, spokeswoman for $10.3 billion system, wrote in an e-mail.
As part of a new asset allocation approved at their board meeting Tuesday, officials also beefed up international equities by nine percentage points to 29% and private equity by three percentage points to 12%. System officials also adopted a custom real assets benchmark of 50% private real estate and 50% TIPS.
Information on whether LACERS officials plan to launch searches for managers or will be tapping existing managers could not be ascertained by deadline.
Funding came from trimming domestic equities by thirteen percentage points, core fixed income by seven percentage points and private real estate by two percentage points.
According to a memo to the board, system officials also plan to ask its core-plus bond managers to change to a core mandate.
System officials plan to initiate a search for new managers if one or more of the managers cannot convert to a core bond portfolio, according to a memo to the board by investment consultant Wilshire Associates that included the next steps to take following adoption of the asset allocation.
LACERS' entire $2.62 billion fixed-income portfolio is in core-plus bonds, according to a Sept. 30 investment report on the system's website.