SUBJECT/RECOMMENDATION:
Title
Approve Investment Management Agreement with Northern Trust Investments, Inc. for a separately managed mid-cap growth equity index investment account and authorize the appropriate officials to execute same.
Body
SUMMARY:
The Pension Investment Committee is recommending the addition of a separately managed mid-cap growth equity index fund. This index account will be used to replace terminated money manager Artisan Partners if approved by the Trustees.
The Pension Investment Committee unanimously recommends Northern Trust’s separately managed mid-cap growth index account for an initial investment of $60 million, or approximately 4.3% of the total plan investment portfolio.
The addition of this index fund increases the diversification of the mid-cap equity category by allocating current actively managed monies to a passive index fund with lower management fees.
Investment manager fees will be 4 basis points (0.04%), versus a previous fee of 80 basis points (0.80%) for the actively managed account that is being terminated.
The pension plan’s attorney, Klausner, Kaufman, Jensen and Levinson, has reviewed and approved the Investment Management Agreement.
APPROPRIATION CODE AND AMOUNT:
6467410-530100 $25,000 annually
STRATEGIC PRIORITY:
Attract and retain top-quality personnel through the maintenance of a competitive compensation and benefits program.