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Trustees hear Franklin Templeton, Renaissance and begin SMID manager search; decision deferred to July
Summary
Franklin Templeton and Renaissance reviewed international and GARP strategies; an investment consultant recommended adding a SMID core manager to lower portfolio risk and improve returns, and trustees agreed to defer any hiring decision to the July 23 meeting while requesting additional slide decks from finalist firms.
Trustees for the Sarasota City General Employees Pension Plan heard presentations April 23 from Franklin Templeton and Renaissance on the plan’s international and value-oriented sleeves and discussed whether to add a SMID (small‑mid) core manager to replace the current split small‑cap value and small‑cap growth allocation.
Heather Abdonor, Executive Vice President and the portfolio manager representing Franklin Templeton, framed the firm’s role as a long-term international value manager and said the strategy benefits from a global research team and a valuation discount for international stocks. Abdonor said the portfolio is balanced between cyclicality and defensive holdings and reiterated the firm’s sell discipline, noting that “we are the value manager with a balanced approach, well resourced, and just happy to be here.”
Mike Strickmarter, partner and portfolio manager for Renaissance’s international strategy, reviewed his firm’s GARP approach and recent outperformance in the trailing period cited to the board. Both firms described sector and country contributors to recent performance and answered trustee questions about exposures and positioning.
An independent consultant presented an analysis comparing the plan’s current 50/50 NFJ+Geneva small‑cap combination to several SMID core managers. The consultant argued that a SMID core manager could reduce portfolio volatility while delivering similar or better returns across multi‑year windows, and illustrated this with calendar‑year return and standard deviation comparisons. The consultant summarized the practical decision as moving the combined $35 million currently in NFJ and Geneva into one SMID manager or splitting it across two, and recommended further due diligence.
Trustees pressed on risk trade‑offs, timing and staffing for a manager search. The board asked the consultant to provide slide decks for Allspring and Segal Bryant to Miss Martin in advance of the next discussion. Because several trustees expect to be absent in May, the board agreed to table a final decision and resume the SMID manager search discussion at the July 23, 2026 meeting so the full board can participate.
Why it matters: Reallocating the small‑cap sleeve into a SMID core manager would change manager concentration and risk characteristics in a portion of the pension portfolio; trustees emphasized the need for full-board review and additional information before committing plan capital.
Next steps: The consultant will assemble search materials and finalists’ slide decks for distribution, and the board will revisit the SMID decision at its July 23 meeting.
