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Deferred‑comp committee votes to replace Vanguard international‑value fund with Hartford fund
Summary
The advisory committee voted unanimously to terminate the Vanguard International Value fund on the plan menu and map those assets to Hartford International Value, citing style drift and relative performance; the recommendation came from plan consultants and was approved at the Sept. 2 meeting.
The Deferred Compensation Advisory Committee voted unanimously to remove the Vanguard International Value fund from the plan menu and map the assets to Hartford International Value.
Vincent, the county’s fiduciary consultant, presented analysis showing that the incumbent Vanguard fund had drifted away from a pure international‑value strategy and had underperformed peer benchmarks. "Vanguard International hasn't been performing very well. This is the second reason that's giving us pause and [a] rationale to terminate," Vincent said while reviewing peer rankings and risk/return charts.
Consultant analysis compared three replacement candidates (Dimensional Fund Advisors, Dodge & Cox, and Hartford). Vincent recommended mapping the assets to Hartford; he said Hartford had stronger risk‑adjusted returns in the consultant’s analysis. "Our recommendation is to terminate Vanguard and map the assets to Hartford. Our second choice if the committee is cost conscious, is DFA," he said.
A committee member moved to terminate the Vanguard fund and map to Hartford; another member seconded the motion. On the voice vote the chair called for aye; the meeting record states, "All in favor, say aye. Aye. Opposed? Motion carries unanimously."
The committee’s decision directs staff to implement the fund replacement and to complete the paperwork to effect the mapping. Vincent noted the replacement will alter the international value allocation and discussed fee differences: Vanguard’s fee had recently fallen to 36 basis points, DFA at about 38 bps, Dodge & Cox at about 52 bps, and Hartford at about 81 bps; the committee weighed performance and fees in reaching its decision.
The replacement will be processed through the plan’s administrative procedures and staff indicated they would bring back implementation details and timing at a future meeting.
