Los Angeles decreases real estate expense budget
The $15.5 billion Los Angeles Fire and Police Pension will have a $22.86 million real estate investment expense budget for 2017–2018, which is 24.2 percent of the total investment expense budget, according to a document on the pension fund’s website.
This is a $1.5 million decrease from its 2016–2017 budget, which the pension fund attributed primarily to the sale of a property and increased commitments to core commingled funds.
Investment management expenses for the 2017–2018 proposed budget represent 7.6 percent of total estimated expenditures for the year and are projected to be $94.5 million, an increase of about $3.4 million (3.7 percent) from the 2016–2017 budget, said the report.
Actual payments to investment managers depend on the dollar amount of assets under management, the portfolio performance, the period in which the fee is calculated, and the terms and conditions of the individual contracts as approved by the board. These investment manage