Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Transparency topic
No spam. Unsubscribe anytime.
Advisor reviews fees, custodial costs and governance calendar for Monroe plans
Summary
The investment adviser outlined management, custody and fiduciary fees for the town pension, OPEB and Board of Education plans and highlighted annual governance items; adviser estimated an annual fiduciary fee of about $44,000 and all performance is shown net of fees.
The adviser reviewed the governance calendar and fee disclosures at the meeting, noting that reported performance figures are net of fees and breaking down investment management fees by fund. The town plan's weighted average investment management fee was presented at roughly 43 basis points, the Board of Education plan at 44 bps, and the OPEB portfolio at about 16 bps because it holds more indexing. The adviser also said custody at Principal costs about 3 bps and that the advisor's flat fiduciary fee is subject to a 3% annual escalator, currently translating to about $44,000 per year.
Committee members asked clarifying questions about fee translation into basis points and how indexing lowers overall costs; the adviser pointed to examples in the report (Vanguard 500 index fund at 0.04%) to show how indexing reduces the weighted average fee. The Chair reminded trustees that these fee figures are netted from reported performance and do not represent an additional check written by the town.
