Committee places Vanguard International Growth and Nuveen Real Estate on watch, retains Nationwide fixed account

During the June 17 meeting the Defined Contribution Plans Committee voted to place two investment options on watch and to retain the Nationwide fixed account.

Fiduciary consultant Rash Cousineau explained that Vanguard International Growth had hit IPS watch criteria for the third consecutive quarter and that Nuveen Real Estate showed a mixed trailing record; the committee’s recommendation was to move Vanguard International Growth to watch status and to keep Nuveen Real Estate under observation. City staff and the consultant explained that the Nationwide fixed account remains in the lineup because its low record‑keeping fee (1.25 basis points crediting) helps lower planwide administration costs; removing it could raise recordkeeping fees for all participants.

Chair and members approved a motion that (a) retain the Nationwide fixed account, (b) place the Nuveen Real Estate Security Select on watch, and (c) place Vanguard International Growth on watch. The motion passed by voice vote. Committee members asked staff to continue dialogue with managers and return with updates at regular quarterly reviews.

The committee also heard a broader review of cash flow and fee metrics; staff noted first‑quarter net outflows are typical but will monitor trends. The city attorney advised staff that legal analysis is required before taking procedural steps like moving assets into collective investment trusts; staff said they will return with a legal memo by September.