(updated with correction)
Los Angeles City Employees’ Retirement System committed $20 million each to Paladin Realty Latin American Investors IV and Hancock Timberland XI, subject to successful contract negotiations, Linda Aparicio, spokeswoman for the $9.8 billion system, wrote in an e-mail.
Separately, the system is terminating corporate governance manager Relational Investors, which managed $106 million as of Sept. 30 in domestic equities benchmarked to the Russell 1000 Blend index, according to Ms. Aparicio’s e-mail and the system’s third-quarter investment report. LACERS had invested a total of $125 million in Relational Investors X, an open-ended, large-cap domestic equity fund. The board exercised its 90-day right to withdraw its capital under the limited partnership agreement.
Relational has been on the system’s watchlist for organizational changes since June and for performance since September. Its return for the quarter was -20.7% and -3.1% for the 12 months ended Sept. 30.
Ralph V. Whitworth, a founder and principal of Relational, was traveling and could not be reached for comment by press time.
Relational earned 16% on the LACERS portfolio since the end of the third quarter and as of Wednesday the portfolio is up 2% for the year, according to a spokesman for the fund. Relational's concentrated portfolio with a small number of stocks experienced volatility in the third quarter along with the market, the spokesman said.