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Committee places Invesco gold fund on watch, approves lower‑cost target‑date funds and adopts charter and fee policy
Summary
The advisory committee put the Invesco Gold & Special Minerals Fund on watch after its lead manager left, approved moving target‑date models to a lower‑cost collective investment trust to save roughly $130,000 annually, and adopted a committee charter and fee policy (with minor editorial amendments).
The San Joaquin County Deferred Compensation Advisory Committee voted Feb. 26 to place the Invesco Gold & Special Minerals Fund on watch, to shift the plan’s target‑date series to a lower‑cost collective investment trust (CIT), and to adopt a committee charter and a fee policy with agreed editorial changes.
Consultant Vincent Galindo recommended placing the Invesco Gold & Special Minerals Fund on watch because the lead manager recently departed. He told the committee that manager turnover, even for a high‑performing fund, is a qualitative reason to monitor performance and governance. The motion to place the fund on watch passed unanimously.
Galindo also reviewed a proposal to reduce target‑date costs by moving from a 37‑basis‑point structure to a 29‑basis‑point CIT. He said the change would save approximately $130,000 a year in investment costs for participants but would require granting the OCIO partner discretionary authority over the target‑date models. Galindo said discretionary authority is limited to specific circumstances — for example, if a manager’s process materially broke down — and emphasized the committee’s ongoing role in oversight and communication. Committee members discussed the tradeoffs and approved the move.
On governance, staff presented a draft committee charter intended to clarify membership, alternate/designee rules and vacancy procedures; members agreed staff should refine language around designated alternates and work with counsel before the charter is forwarded to the Board of Supervisors for formal adoption.
The committee also approved a fee policy that outlines permissible plan‑related expenses and a process for using excess administrative allowance; members requested editorial numbering for sections. Both the charter amendment authority (delegating limited edits to the plan administrator) and the fee policy were approved by voice vote.
Votes at a glance: - Invesco Gold & Special Minerals Fund: placed on watch — unanimous vote (6‑0). - Move target‑date series to lower‑cost CIT (from 37 bps to 29 bps): approved — unanimous. - Committee charter adoption with delegated amendment authority: approved — unanimous. - Fee policy adoption (with editorial modifications): approved — unanimous.
Next steps: consultants will monitor funds on watch and report quarterly; staff will coordinate charter language with counsel and include the documents in the packet to the Board of Supervisors.
