LACERS Mulls Allocation Shift to Real Assets, Extends with Axiom

The Los Angeles City Employees’ Retirement System (LACERS) is considering a shift in target asset allocation that would see it reduce its commitment to equities in favor of real assets and fixed income, according to minutes from its August 27 board meeting.  

LACERS is in the midst of an ongoing review of asset allocation with consultant NEPC. The possible new allocation would see the total equity target shift to 50% from 63%, while the target for real assets increases to 23% from 12% and fixed income to 26% from 24%. The allocation to cash will remain at 1%. 

In recent board meetings, NEPC presented on infrastructure investments, and the LACERS board said it is considering infrastructure for possible inclusion in its asset allocation policy.

At the meeting, the board also approved a one-year contract extension with Axiom Investors, which manages an active non-U.S. emerging markets growth equities strategy for LACERS. 

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