Los Angeles City Employees’ Retirement System (LACERS) is considering increasing its private real estate allocation from 5% to 8%.

According to a board meeting report, the pension fund is conducting an asset allocation review with its investment consultant NEPC.

The change would mean its allocation to core real estate could move from 3% to 4.8%, and its non-core exposure could rise from 2% to 3.2%. 

LACERS tends to invest in real estate through funds, so is likely to increase its exposure through fund investments under the advice of its real estate consultant The Townsend Group.

Last year, LACERS planned to commit $100m to non-core real estate funds and $20m to core strategies during its 2017-18 fiscal year.

The pension fund’s investments in real estate investment trusts (REITs) are expected to be unaffected, since they form part of a separate 5% liquid real assets allocation.

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