Alameda County Employees Retirement Association, Oakland, Calif., will withdraw its $50.6 million investment in the AFL-CIO Housing Investment Trust, according to minutes from the systems March 14 board meeting, which cited high management fees, organizational issues and decreasing net returns. The $5.2 billion fund has a $269 million real estate portfolio. Betty Tse, CIO at ACERA, did not return a call requesting comment.
There has been no change in the portfolio management team in the past four years. The increase in management fees partly reflects the additional resources invested to ensure compliance in the Sarbanes-Oxley environment, Chang Suh, chief portfolio manager at the AFL CIO, wrote in an e-mail response. As of Dec. 31, the trust has outperformed the Lehman Aggregate Bond index for the one-, three-, five- and 10-year return periods, according to the e-mail.