The Los Angeles County Employees Retirement Association’s Board of Investments has approved a commitment of up to $250 million to a newly launched fund by Investors Diversified Realty, a Cleveland-based investment management firm, according to John McClelland, principal investment officer at LACERA.
The new fund, Core Property Index Fund, is the first private equity real estate index vehicle made available to institutional investors. It is also an open-end commingled fund that will seek to match the returns of the NCREIF NFI-ODCE Index (ODCE) with a tracking error of 12 basis points or less on a net-of-fee basis, according to board meeting documents.
The IDR fund provides an opportunity for LACERA to obtain “beta” exposure to core real estate. LACERA approved the allocation in an effort to increase core commingled fund exposure, according to the d
