PASADENA, Calif. Los Angeles County Employees Retirement Association will now make real estate co-investments, said Lisa Mazzocco, chief investment officer for the $38 billion fund. Staff will have investment authority for commingled funds and separate accounts of less than $50 million, and co-investment decisions for larger amounts will be made by the board. Also, staff will consult with an independent fiduciary for new managers with which the association does not already have a relationship. The board adopted the co-investment policy for its $3.6 billion real estate portfolio because co-investments provide one more opportunity to get real estate exposure in a competitive market, Ms. Mazzocco said.
San Bernardino County boosts timber investment
SAN BERNARDINO, Calif. San Bernardino County Employees Retirement Association increased its commitment to TimberVest Partners II to $50 million from $30 million. The board of the $6 billion system made the original commitment in April.
New joint venture to run real estate hedge funds
LONDON CB Richard Ellis and derivatives specialist Reech AiM formed a joint venture to manage real estate hedge funds from London. Reech CBRE Alternative Real Estate LLP has launched the Iceberg Alternative Real Estate Fund, the first in a series of six planned funds each with a capacity of £400 million ($800 million), said Andrew Waterworth, spokesman for both firms. The fund invests in European financial instruments with real estate exposure and has a benchmark of LIBOR plus 15 percentage points. Institutions, hedge funds of funds and private investors have committed 25% to the fund, said Martin Samworth, a CBRE managing director, in a news release.
Schwab launches real estate mutual fund
SAN FRANCISCO Charles Schwab Investment Management introduced its first real estate mutual fund, which is available in institutional and retail shares. The Schwab Global Real Estate Fund invests in real estate investment trusts, said Sondra Harris, Charles Schwab spokeswoman. Schwab bought real estate research firm Global Real Analytics in January to create strategies based on the firms research, Ms. Harris said.
The fund will be managed by Jeffrey Mortimer, senior vice president and chief investment officer of equities; Dionisio Meneses Jr., managing director and portfolio manager and former senior manager of Global Real Analytics; and David Siopack, managing director and portfolio manager, and former senior manager of GRA.