LACERS to focus on higher-return real estate as it rebalances core holdings

Los Angeles City Employees Retirement System (LACERS) plans to focus on higher-return real estate investments over the next 12 months and rebalance its existing core fund holdings.

The pension fund plans to commit $100m (€87.7m) to new non-core strategies during the 2017-18 fiscal year, according to a board meeting document, while earmarking only $20m for core strategies.

At the same time, it will assess the performance of core open-ended funds in which it has investments with a view to reallocating capital accordingly.

LACERS, which is being advised by The Townsend Group, is likely to split the $100m into three commitments.

It will focus on funds active in the US office, retail and niche property markets, while also considering international strategies. 

Townsend said LACERS would consider filing redemptions from underperforming core open-ended funds and re-investing the capital in two funds.

The pension fund has investments in a number of core funds, including Jamestown Premiere Property Fund, JP Morgan Strategic Property Fund, Lion Industrial Trust, Morgan Stanley Prime Property Fund and Principal US Property Account.

Its core fund portfolio was valued at $411.5m at the end of 2016.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2575

    Asset class: Core Real Estate Muli-Manager Separate Managed Account.
    Asset region: Global.
    Size: CHF 150m.
    Closing date: 2019-12-20.

  • QN-2578

    Asset class: Sovereign Local Currency Emerging Market Debt.
    Asset region: Local emerging markets.
    Size: EUR 950m.
    Closing date: 2019-12-19.

  • QN-2582

    Asset class: Emerging Market Corporate Debt Hard Currency Investment Grade.
    Asset region: Emerging Markets.
    Size: USD 40 – 60 m.
    Closing date: 2020-01-07.

Begin Your Search Now