Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the International Equity topic
No spam. Unsubscribe anytime.
Vero Beach police pension board splits international allocation after manager reviews
Summary
After interviews with DFA and Earnest Partners and a review of quarterly performance, the Vero Beach Police Officers' Retirement Trust Fund voted to split its international equity allocation between Harding Loevner and DFA, balancing manager style, minimums and fees.
The City of Vero Beach Police Officers' Retirement Trust Fund Board voted Feb. 18 to split its international equity allocation between Harding Loevner and Dimensional Fund Advisors (DFA) as close to 50/50 as possible while respecting Harding Loevner's minimums.
The move followed presentations from two finalist managers introduced by Mariner Institutional consultant Kerry Richardville. DFA representatives emphasized a team-based, academically linked investment process, global coverage and relatively low turnover; DFA's Andres Torres confirmed the quoted fee was 30 basis points. Earnest Partners' representatives highlighted an employee-owned structure, a process they said produced consistent returns, daily liquidity for their commingled fund and a $3 million minimum; Earnest's fee was stated as 85 basis points.
The decision to split the allocation grew out of a quarter-end review by Mariner Institutional showing a total fund market value of $62,002,154 and a quarterly net return of 1.58%. Mariner reported 1-, 3- and 5-year trailing net returns of 12.98%, 12.73% and 6.69%, respectively, versus benchmark returns of 14.57%, 13.63% and 7.66%. Board members discussed differences in style and concentration risk and sought to preserve manager capacity while keeping costs reasonable.
Trustee Ann Thompson moved the allocation split; Trustee Jose Prieto seconded the motion, which carried 5-0.
Board members and consultants also discussed implementation mechanics, including whether to use a CIT or separately managed account and how to fund any new manager without breaching manager minimums. Mariner's Kerry Richardville said she would finalize the standing rebalance letter and deliver it to Foster & Foster's plan administrator to effect any transfers.
The board did not adopt Earnest Partners as the sole replacement; instead, trustees chose to split exposures to balance style diversification and manager minimums. The board scheduled follow-up operational steps to implement the reallocation and reconcile fees and account structures.
The board's vote on the allocation was the most substantive formal action at the meeting; other routine administrative items, including approval of revised minutes and standard consent warrants, were handled separately.
