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Pension trustees terminate Artisan Partners, approve Northern Trust passive mid‑cap growth account
Summary
Trustees voted unanimously to remove Artisan Partners as the active domestic mid‑cap growth manager and approved a separately managed passive mid‑cap growth index account with Northern Trust, citing multi‑year underperformance and a significant fee reduction (from ~80 bps to 4 bps).
Jay Rabins, finance director, told the Clearwater Pension Trustees on Nov. 3 that the investment committee recommended terminating Artisan Partners, the plan’s domestic mid‑cap growth active manager hired in 2001, because of persistent underperformance. Trustees voted to terminate and to replace the active mandate with a separately managed passive account indexed to the Russell Mid‑Cap Growth Index.
Rabins said the passive product with Northern Trust would carry a fee of roughly 0.04% (4 basis points), compared with about 0.80% (80 basis points) for the previous active manager. The move responds to the committee’s review of performance and fees and aligns the mid‑cap equity allocation with the plan’s current strategy.
Trustees also approved routine updates to the plan’s investment policy and several administrative items including new hires accepted into the pension plan and individual pension benefit requests, all by unanimous voice vote.
