The $75.6 billion Los Angeles County Employees Retirement Association (LACERA) has adopted a structure review of its real assets portfolio.
The structure review indicates LACERA would continue to invest in private infrastructure and natural resources assets, which will eventually largely replace public market equities in these categories as well as commodities futures.
LACERA’s real assets program has existed in its current structure since its 2018 inception, with the plan to replace the public market equity completion and commodities futures portfolios with private assets over time. It is believed this structure will better meet LACERA’s risk/return and diversification objectives.
Under the new pacing and commitment schedule, LACERA is targeting a 4 percent infrastructure allocation by 2024 and a 5 percent infrastructure allocation by 2026.
The portfolio consists of a core versus noncore split, with oversize core commitment through open-end funds in