Los Angeles City Employees’ Retirement System (LACERS) is planning to issue its first-ever request for proposal (RFP) seeking infrastructure managers, the pension fund’s investment consultant NEPC disclosed in a meeting document.
The RFP search is expected to begin as soon as next month, with the new manager mandates expected to be awarded between January and March of next year.
The $25.2bn pension fund approved a 5% dedicated infrastructure allocation during its board meeting in December 2024.
NEPC recommends a core-satellite structure of 60% actively managed and 40% passively managed global listed infrastructure for the pension fund.
The pension fund intends to focus its infrastructure investments across the sub-sectors of transportation, energy and utilities, communication and social.
The expected return targets for these sectors are 11% to 15% for transportation, 10% to 14% for communication and 8% to 12% for social and energy/utilities.
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