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.)
        

          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.
        

          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.