Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

http://www.businessweek.com/news/2013-03-14/los-angeles-pension-fund-will-invest-785-million-in-commodities

Bloomberg News

Los Angeles Pension Fund Will Invest $785 Million in Commodities

March 14, 2013

The Los Angeles Fire and Police Pension System, with about $15.7 billion in assets, is allocating about $785 million for commodities, its first investment in the asset class.

The fund will allocate 5 percent of its money over a two- year period for investments including commodity-related futures, stocks and private equity, Tom Lopez, the fund’s chief investment officer, said in a telephone interview from Los Angeles. The private-equity portion is already being invested, he said.

Investing in commodities “is simply an additional diversifier for the fund,” Lopez said. “It provides some inflation protection, and the expectation is for a return close to equities.”

The pension system’s board of directors made the decision to allocate a portion of the fund to commodities in December 2010, Lopez said. In September, the board started reviewing investment options for raw materials, he said.

To contact the reporter on this story: Elizabeth Campbell in Chicago at ecampbell14@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus