Los Angeles City Employees’ Retirement System (LACERS) has adopted a new strategic real estate plan for fiscal year 2020–2021, according to a recent board meeting document.
Under the plan, LACERS will commit between $130 million and $210 million to real estate annually. The pension fund will increase its exposure to industrial strategies that are complementary to those of LACERS’ core industrial holdings, which currently represent the majority of the system’s exposure to the property type.
LACERS will also consider a value-added, diversified manager to increase its exposure to apartment assets in the United States. In addition, the system said it will evaluate noncore diversification opportunities and consider an ex-U.S. strategy.
LACERS will look to allocate between $30 million and $70 million to no more than one core fund, and between $100 million and $140 million to two or three noncore funds.
