Los Angeles Fire and Police Pensions (LAFPP) has renewed its US real estate separate account relationship with AEW Capital Management for another three years.

The current AEW relationship, which manages a 12 property US portfolio valued at $461m (€391.5m), expires on 31 December 2020.

The $25.3bn pension fund said in a meeting document that for a short assessment period of only two and a half years, the “AEW’s portfolio returns has been acceptable, with since inception returns exceeding the benchmark by 47 bps net of fees”.

LAFPP said AEW is currently restructuring the core portfolio by implementing the investment strategy of a diversified income-oriented portfolio in the top 20 metropolitan statistical areas. AEW is finalising one acquisition and one disposal, which will be reported on later in the year, the pension fund said.

”Another three-year contract would provide a longer period to assess the success of AEW in transitioning the real estate separate account portfolio as well as managing the board’s assets through a full market cycle,” LAFPP said.

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