Los Angeles City Employees' Retirement System committed $40 million to CIM Urban REIT; $25 million to CB Richard Ellis Strategic Partners IV; $10 million UrbanAmerica Fund II; and $8 million to Sterling Venture Partners II. The board of the $9.4 billion fund also hired Donald Smith & Co to manage $90 million and PanAgora to manage $150 million, both in active domestic small-cap value equities. Funding came from cash.
Separately, the board terminated Pacific Financial Research, which managed $623 million in active domestic large-cap value equities, for organizational changes, and Oak Associates, which managed $218 million in active domestic large-cap growth equities, for performance, said Robert Aguallo Jr., the fund's general manager. Half the money from the Pacific Financial Research portfolio will be put in a Russell 1000 Value index fund run by existing manager Barclays Global Investors; and the other half will go to an active domestic equity portfolio run by existing manager Aronson + Johnson + Ortiz. Oak's portfolio will be managed by Alliance Capital, which already runs an active domestic equity portfolio for the fund. Further information was unavailable by press time. Tucker Hewes, spokesman for Oak Associates, declined to comment.
In addition, fund officials plan to look for a pool of transition managers, said a fund official who did not want to be identified. They plan to issue an RFI in December, but further details haven't been determined. Investment consultant Pension Consulting Alliance will assist. Fund officials want to have managers to choose from when they terminate money managers.