LACERA adopts plan to rebalance real estate portfolio

The $56bn US public pension plans to shed $1.4bn of core assets to meet new allocation targets.

The Los Angeles County Employees’ Retirement Association (LACERA) outlined a pacing plan for rebalancing its $6.2 billion private real estate portfolio at yesterday’s board meeting.

The $56 billion US public pension, looking to reduce its “Real Assets and Inflation Hedging” portfolio by $1.4 billion, will facilitate sales totaling $700 million of its currently-held core and value-added assets over the course of 2018. The pension will correspondingly increase its exposures to opportunistic real estate and credit by $295 million and $337 million, respectively.

In addition, LACERA’s plan calls for allocations of up to $550 million for new investments with existing separate account managers.

The pension has an 11 percent overall allocation to private real estate. Platinum subscribers may click here for the pension’s full profile, including key contacts, allocation strategy and fund investments.