Los Angeles City Employees' Retirement System hired CoreCommodity Management to run about $135 million in an active long-only commodities mandate, minutes from LACERS' Oct. 14 board meeting show.
The board for the $13.9 billion pension fund issued an RFP on April 14.
LACERS also committed up to $35 million to Clarion Lion Industrial Trust, a $4.9 billion open-end core-plus real estate fund managed by Clarion Partners.
Separately, the board terminated Sit Investment Associates, which managed a $102 million active domestic small-cap growth equity portfolio, for performance. Sit's assets were transferred to Franklin Templeton Investments, which now manages a total of $267 million in a similar strategy. Further information was unavailable by press time. Roger Sit, CEO and global chief investment officer, could not be reached for comment by press time.
In other action, the board at its Oct. 28 meeting reduced the pension fund's assumed rate of return to 7.5% from 7.75%, said Mimi Linn, spokeswoman, in an e-mailed response to questions. The board reduced the rate of return rate following an actuarial experience study for the period from July 1, 2011, through June 30 by Segal Consulting, LACERS' actuarial consulting firm.
