SUBJECT/RECOMMENDATION:
Title
Approve Participation Agreement and Addendum with Bank of New York Mellon, as Trustee, for investment in the BNYM Newton NSL U.S. Dynamic Large Cap Value Fund, and authorize the appropriate officials to execute same.
Body
SUMMARY:
One of the plan’s large cap value money managers, Manning & Napier, has been recommended for termination by the pension plan’s pension investment committee.
The City’s investment consultant, CapTrust Advisors, conducted a manager search for a replacement large cap value money manager. The pension investment committee reviewed the search results at the February 28, 2025, quarterly committee meeting and unanimously selected Newton Investment Management Group for recommendation to the Pension Trustees.
The investment will be in Newton’s collective investment trust, BNYM Newton NSL U.S. Dynamic Large Cap Value Fund, for an initial investment of up to $50 million, or approximately 4% of the total plan investment portfolio.
As December 31, 2024, the fund’s performance over the past five years has been as follows:
Benchmark
Performance Index
Calendar 2024 16.95% 14.37%
Last 3 years 11.32% 5.63%
Last 5 years 14.16% 8.68%
Investment manager fees will be 0.40% on all assets under management.
The pension plan’s outside counsel, Klausner, Kaufman, Jensen and Levinson, has reviewed and approved the participation agreement and addendum for execution.
APPROPRIATION CODE AND AMOUNT:
6467410-530100 $250,000 annually