Los Angeles County Employees Retirement Association, Pasadena, Calif., revised its investment policy to delegate manager selection and termination to its CIO and investment staff.
Under the new investment policy statement approved at the Nov. 8 meeting, the board of the $72.6 billion pension fund retained the responsibility for approving asset class structure reviews that place limitations on manager asset concentration. In addition, the policy includes guardrails to prevent the CIO from exerting undue influence on the pension fund to invest with favored managers. These guardrails include requiring board approval of CIO-sourced investment opportunities as well as requiring investment consultants to independently evaluate and concur with each investment mandate approval or termination.
LACERA's CIO and staff already had investment-related investment authority. Within that, the CIO and staff has the responsibility for co-investments and alternative investment secondary market transactions within board-approved structure review guidelines. Staff also can take time-sensitive actions with CEO and board chair concurrence, when necessary for the pension fund's best interests.
