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| LACERS Portfolio Management |
The money in LACERS fund comes from three sources: Member contributions, contributions from the City of Los Angeles, and earnings from LACERS investments. For the fourth quarter ending December 31, 2007, the fund was valued at $11.4 billion.
Who Sets LACERS' Overall Investment Policy?
The LACERS Board of Administration sets the overall investment policy and vision for LACERS with the goal of establishing the most optimal investment portfolio. The Board approves LACERS asset allocation, selects investment fund managers, and fulfills their fiduciary responsibilities, relying on the "Prudent Person Standard"
Prudent Person Standard: A fiduciary must discharge his or her duties with the care, skill, prudence and diligence that a prudent person acting in a like capacity would use in the conduct of an enterprise of like character and aims.
LACERS Portfolio Management section has the responsibility of implementing Board policy. They must weigh different investment options and balance their risk and reward while focusing on the long-range performance.
Portfolio Management staff have the responsibility of managing the asset allocation (the percent of our assets allocated to a particular type of investment), monitoring the performance of LACERS investments (contracted to various money managers), and comparing the performance of contracted investment managers to others. They evaluate the performance of our investments and research options so that they may present recommendations to the Board, who decides the most prudent action necessary to maximize returns and minimize risk.
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