Los Angeles County Employees' Retirement Association is reviewing its fixed-income structure in preparation for conducting an asset-liability study later in the year, said David Kushner, chief investment officer of the $37.5 billion Pasadena, Calif.-based retirement association.
“In the fixed-income study, we are going to determine what other opportunities we would have access to that are high quality and that have better returns,” Mr. Kushner said.
“LACERA is conducting the fixed-income structure review first to get good return assumptions, and then LACERA will launch an asset-liability study,” Mr. Kushner said.
LACERA conducts an asset-liability study every three years, Mr. Kushner said. LACERA officials are targeting completion of the study for late summer or early fall.
The asset-liability study will probably not result in searches because changes in the fixed-income structure will most likely lead to opportunistic investments, Mr. Kushner said. These opportunities are typically structured more like private equity than traditional public market opportunities.