Los Angeles City Employees Retirement System (LACERS) is proposing a temporary reduction of its real estate allocation in the current fiscal year from 7% to 6%.
The $22.6bn (€22.4bn) pension fund’s investment consultant NEPC disclosed in a meeting document that the proposed allocation reduction during the current fiscal year which started 1 July has become necessary due to a recorded increase in allocations for both real estate and private equity.
According to NEPC, the increase was caused by a capital market shift in the public market portion of the pension fund’s portfolio.
IPE Real Assets reported in May that LACERS was planning to invest up to $450m in real estate in fiscal 2023.
The pension fund disclosed in the meeting document that it had made a $100m commitment to Cortland Growth and Income Fund, a core-plus open-ended US apartment fund.
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