LACERS Considering Increased Exposure to High Yield, Emerging Market

The Los Angeles City Employees; Retirement System reviewed their asset allocation goals with consultant NEPC during the April 9th Board meeting. 

Goals for the 2024 asset allocation study include; re-aligning their equity allocation to more closely resemble the market opportunity set, expanding real asset allocations beyond REITs, TIPS, and private real estate, and consider the restructuring of their public fixed income portfolio, increasing their high yield exposure and decreasing their emerging markets debt exposure. 

Additionally, they plan to explore additional asset mixes that resemble peer funds with risk-adjusted returns and potentially increasing their exposure to private markets. 

NEPC presented a few different asset class mixes that reflect the goals. Discussions will continue in future meetings.

As of January 31, 2024 LACERS was valued at approximately $22.57 billion.

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