Los Angeles Water and Power Employees’ Retirement Plan is renewing its relationship with StepStone Real Estate, with a new five-year contract as its investment consultant when the current deal expires next March.
The pension fund disclosed in a board meeting document that StepStone’s duties will include assisting in the selection and evaluation of new fund investments and investment managers.
StepStone’s other fiduciary duties include continuously reviewing the pension fund’s investment policies, guidelines and real estate portfolio, as well as developing an annual strategic plan for the portfolio.
The projected annual fee for StepStone Real Estate will begin at $155,000 (€133,000) and will reach a final annual fee of $174,452, based on a three percent yearly increase.
Los Angeles Water and Power Employees said it also intends to commit to the Vistria Housing Fund, though the amount was not disclosed.
The Vistria Housing Fund’s strategy is to invest in US affordable housing properties.
The LA Water and Power Employees pension fund’s real estate portfolio is currently valued at $2.33bn, representing 9.9% of its total assets, nearing its 10% target allocation.
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