LACERA looks to place $1.2b in core real estate in 2023

The Los Angeles County Employees Retirement Association (LACERA) is planning to invest $1.2 billion in core real estate in 2023, in line with a pacing model approved by the board in 2022.

The implementation plan includes maintaining a target allocation of 6 percent to core real estate within real assets and inflation hedges, which was at an actual allocation of 6.1 percent, as of June 30, 2022. It also includes transitioning away from separate accounts to commingled funds to reduce portfolio concentration and operational risk, as well as underwriting additional core and core-plus funds to complete the portfolio.

According to LACERA, pacing for new investments in core funds will need to follow dispositions in separate account assets. The separate account structure will be sold throughout a projected three-year period, beginning fiscal year 2023. The pension fund intends to conduct an RFP to engage a third-party fiduciary for the transition and ultimate sale of directly