LACERS ditches investment consultant

The $9bn Los Angeles pension fund is planning to transfer ‘specialised alternative investment consultant services’ from PCA to its traditional investment consultant, Hamilton Lane.

The Los Angeles City Employees’ Retirement System is set to terminate its relationship with Pension Consulting Alliance and transfer the mandate for consultancy services to Hamilton Lane Advisers, LACERS told Private Equity International.

Hamilton Lane is already LACERS’ current traditional alternative investment consultant, but will assume PCA’s “specialised alternative investment consultant services” if the LACERS Board approves the recommendation, it said. Specialised alternatives include investments with emerging managers, funds focused on underserved markets, demographically targeted partnerships and geographically targeted investments.

LACERS’ specialised alternative investments are expected to achieve “attractive risk-adjusted returns that complement LACERS’ traditional private equity program.” The pension, which has $9.0 billion in assets, has a target allocation to alternatives of 9 percent and an actual allocation of 10.5 percent.

Last month, the California Public Employees Retirement system, the largest pension in the US with $23 billion in assets, proposed a new consultant policy that would ban investment consultants from also working as money managers for the pension’s investments. The new policy would impact consultants that advise the alternatives sector including PCA and Wilshire Associates.   

Final action on CalPERS’ new consultant policy isn’t expected to happen until August.