The Los Angeles Water and Power Employees’ Retirement Plan has approved the adoption of infrastructure into its real return asset class following the recommendation of the plan’s general consultant, RVK.
At the Feb. 12 retirement board meeting, RVK presented an educational session addressing the potential role of infrastructure investment in the plan’s portfolio. This was in line with a routine asset class structural review the retirement plan undertakes every three to five years to assess the current manager lineup and to determine if new managers and/or new mandates may be warranted.
After discussing the real return structure study, staff and RVK recommended the retirement board consider a dedicated infrastructure mandate to add value to the plan’s real return lineup. The real return target allocation currently represents 5 percent of the plan’s total portfolio and is composed of commodities, timber and passive short-duration TIPS. The asset class has appro
