"Retirement Plan and Investment Giant BlackRock Make Portfolio Moves Amid High Inflation"
The Los Angeles County Employees Retirement Association (LACERA), which manages $70 billion in assets, plans to increase its bond holdings as a result of the higher interest rate environment. The pension plan will revisit its strategic asset allocation this summer, considering changes to its stock, bonds, real estate, and real assets allocations. LACERA's move to more fixed income is part of a broader trend among pension funds, which are expected to shift to more bonds as annual capital markets assumptions used by chief investment officers tilt the equation to more bonds. However, this does not necessarily mean a shift back to the 60-40 stocks/bonds approach.