Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pension Funds topic
No spam. Unsubscribe anytime.
Pension funds up ~12% YTD; consultant says manager changes cut fees
Summary
Consultant reported both uniform and nonuniform pension plans up about 12.4% year-to-date, noted changes to managers and a small‑cap index consolidation to reduce fees, and estimated multi‑year savings from moving away from the previous external manager.
A pension consultant briefed the committee on Dec. 10 with positive quarterly results through Sept. 30. The combined pension funds were reported up 12.4% year‑to‑date and tracking their benchmark; both uniform and nonuniform plans reported similar performance (police fund and nonuniform fund up about 12.3–12.4%).
The consultant said asset allocations are close to policy targets (U.S. equity ~48.9%, fixed income ~35.4%, international equity ~13.9%) and that active international managers (Dodge & Cox; Harding Loevner) outperformed their benchmarks this year. He noted a tactical consolidation of a small‑cap index fund into a lower‑cost index vehicle to reduce fees.
In public Q&A, former finance committee chair Bernie Flynn asked about cost savings from ending the prior manager contract; the consultant estimated manager fees and related charges at roughly $135,000 annually (about $60,000 to external managers plus an internal charge), representing an estimated $540,000 savings over three years compared with the prior $300,000 annual contract arrangement. The committee accepted the presentation and scheduled no formal vote on investment policy changes at this meeting.
