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Los Angeles County Employees Retirement Association (LACERA)

PRI reporting framework 2020

You are in Strategy and Governance » Outsourcing to fiduciary managers and investment consultants

Outsourcing to fiduciary managers and investment consultants

SG 12. Role of investment consultants/fiduciary managers

New selection options have been added to this indicator. Please review your prefilled responses carefully.

12.1. Indicate whether your organisation uses investment consultants.

12.2. Indicate how your organisation uses investment consultants in the selection, appointment and/or monitoring of external managers.

Asset class

Asset class

12.3. Indicate if your organisation considers responsible investment in the selection, appointment and/or review processes for investment consultants.

12.4. Indicate whether you use investment consultants for any the following services. Describe the responsible investment components of these services.

Describe how responsible investment is incorporated

          LACERA restructured and simplified its Investment Policy Statement in 2018 and further revised it in 2019. LACERA’s general investment consultant provided review, input, and collaboration on the project. The Investment Policy Statement incorporates reference to ESG in a set of framing investment beliefs that were developed in 2016 in conjunction with the general consultant. The Investment Policy Statement also incorporates into the fund’s investment philosophy and strategy explicit consideration for “responsible stewardship and beneficial ownership rights,” including incorporation by reference to LACERA’s Corporate Governance Principles articulating the fund’s views on ESG matters. (See http://www.lacera.com/BoardResourcesWebSite/BoardOrientationPdf/policies/invest_policy_stmt.pdf.)
        

Describe how responsible investment is incorporated

          LACERA’s general consultant provides market return assumptions to guide the development and approval of LACERA’s strategic asset allocation. Market return assumptions incorporate macro economic trends such as demographic change and technological disruption. As LACERA prepares for its next asset allocation, LACERA has incorporated into its strategic plan to incorporate climate risk to develop a climate-aware strategic asset allocation, in conjunction with its consultants.
        

Describe how responsible investment is incorporated

          LACERA’s general consultant and asset class specialized consultants provide both general and specific investment research that may address market return assumptions; macro economic trends such as demographic change, geopolitical risks, and technological disruption; and peer analysis or best practice reviews on investment approaches, including consideration of ESG in the investment process of specific asset classes.
        

12.7. Additional information [Optional].

Investment consultants report to the Board of Investments and work in parallel with LACERA staff in the external manager selection, appointment, and monitoring process.


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