Los Angeles City Employees' Retirement System reported a net return of 29.1% for the fiscal year ended June 30, surpassing its benchmark of 27.4%.
For the three, five, 10 and 20 years ended June 30, the board reported net returns of 11.4%, 11.3%, 9.1% and 7.5%, respectively, below the respective benchmarks of 12.3%, 11.9%, 9.4% and 7.6%.
LACERS earned a net return of 1.1% for the fiscal year ended June 30, 2020.
The top-performing asset class for the fiscal year ended June 30 was private equity with a 55.2% net internal rate of return, outperforming its 48.4% benchmark; followed by U.S. equity with a net 44.3% (44.2%); non-U.S. equity, 40.5% (35.7%); public real assets, 17.3% (21.7%); credit opportunities, 11.7% (12.6%); real assets, 11.5% (10.6%); and core fixed income, 0.9% (-0.3%).
As of June 30, the pension fund had an actual allocation of 27.7% non-U.S. equity, 21.8% U.S. equity, 16% core fixed income, 13.5% private equity, 10.8% real assets, 8.3% opportunistic credit and the rest in cash.
LACERS' target allocation is 29% non-U.S. equity, 24% U.S. equity, 19% core fixed income, 12% private equity, 10% real assets, 5% opportunistic credit and 1% cash.
