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Trustees replace underperforming manager with Fidelity 500 index fund to modestly boost AI exposure
Summary
The board voted to terminate a long‑underperforming manager identified in the transcript as "Poland" and to move that allocation into a Fidelity 500 index fund to gain measured exposure to top AI‑related stocks; trustees said the change is modest relative to the overall portfolio.
At the Nov. 12 meeting, the board approved replacing a persistent underperformer in the equity sleeve (referred to in the transcript as "Poland") with a Fidelity 500 index fund.
Investment staff and the plan’s consultant recommended the change after reviewing multi‑year performance data and noting the board’s desire for modest additional exposure to AI‑related large‑cap names. The consultant explained that an index approach would provide broader but still limited exposure to large‑cap growth names (the Fidelity 500 product cited by the presenter is intended to add incremental exposure without adopting a pure growth mandate).
The presenter said the proposed change would be modest relative to total portfolio size (the example allocations discussed would increase exposure to certain AI names by roughly 1–1.5 percentage points of the total plan, using the figures in the handout). A trustee moved to approve the manager termination and the index replacement; another trustee seconded. The board voted in favor with no opposition recorded.
Staff and the consultant said they would proceed with termination and onboarding steps and that a broader active manager search for large‑cap value or other sleeves could follow if performance did not improve.
