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Punta Gorda trustees approve $1.9M rebalance, terminate one international manager
Summary
Trustees approved a rebalancing that sells $1.9 million from an international stock index into bond funds to bring fixed‑income allocations closer to policy targets, and voted to terminate the WCM international manager and move its proceeds into the Vanguard international index.
The Punta Gorda Police Pension Board approved a rebalancing plan and a manager change at its Dec. 11 meeting.
Investment consultants recommended selling $1,900,000 from the Vanguard Total International Stock Index. The proposed trades: $1,100,000 into the Vanguard Total International Bond Fund, $500,000 into the Baird Core Plus Bond Fund, and $300,000 into Fidelity U.S. Bond, which the consultant said would move the plan closer to its target fixed‑income allocation without materially changing the portfolio’s overall risk profile. Trustees approved the allocation by voice vote.
Separately, trustees voted to terminate the WCM focused international growth mandate and move those proceeds to the Vanguard Total International Stock Index. Trustees cited WCM’s concentrated positioning, higher fees (around 1%), and recent underperformance versus passive alternatives as reasons for the change.
Why it matters: the rebalancing reduces equity concentration and raises bond exposure, which the consultant recommended to align the portfolio with policy ranges and reduce downside risk for pensioners. The manager termination reduces active management fees in the international sleeve and shifts assets toward a low‑cost passive option.
Implementation: staff and the consultant will execute the trades and confirm allocations, then report back to the board when transactions settle.
