Los Angeles County Employees Retirement Association (LACERA) is seeking to invest $1.2bn (€1.1bn) in core real estate this year, as it shifts away from separate accounts in favour of open-ended funds.
According to a board meeting document, the pension fund plans to commit capital to three to five constituents of the NFI-ODCE index, which tracks open-ended core US real estate funds.
The pension fund is moving away from separate accounts to reduce portfolio concentration and operational risk.
It could possibly invest in more core and core-plus funds to complete the portfolio.
LACERA has 6.1% of its real assets and inflation hedging portfolio in core real estate, just above its target of 6%. As a result, new investments in core funds will need to follow dispositions from its separate accounts.
Separate account holdings are expected to be sold over a three-year period that started in July last year.
LACERA also increased its agriculture portfolio, making a $85m secondary purchase in the TIAA-CREF Global Agriculture fund, which invests in farmland in the US, Australia and Brazil.
The pension fund already has exposure to the vehicle, having invested last year.
