LAFPP to bump up real estate expenses in new 2020–2021 budget

Los Angeles Fire & Police Pensions (LAFPP) has approved its budget for 2020–2021, which includes a 7 percent bump of investment managers’ expenses — a $7.52 million increase from the 2019–2020 budget.

LAFPP said investment management expenses for the 2020–2021 budget represents 7.9 percent of total 2020–2021 estimated expenditures, which are projected at $114.43 million.

The changes are primarily attributed to a $2.72 million increase for public equities and a $4.38 million increase for private equities due to increasing commitments in these asset classes.

As a result, the real estate asset class will see a 2.5 percent increase. Investment management expenses for this asset class will bump up