SUBJECT/RECOMMENDATION:
Title
Approve Investment Advisory Agreement with Driehaus Capital Management LLC, for investment in the Driehaus Small Cap Growth Strategy Account, and authorize the appropriate officials to execute same.
Body
SUMMARY:
The plan’s current small cap growth money manager, Riverbridge Partners, LLC, 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 small cap growth money manager. The pension investment committee reviewed the search results at the February 19, 2026, quarterly committee meeting and unanimously selected Driehaus Capital Management LLC (Driehaus) for recommendation to the Pension Trustees.
The investment will be in Drieahaus’ Small Cap Growth Strategy Account, for an initial investment of up to $25 million, or approximately 1.7% of the total plan investment portfolio.
As March 31, 2026, the fund’s performance over the past five years has been as follows:
Benchmark
Performance Index
Last 1 year 39.58% 23.58%
Last 3 years 19.37% 12.27%
Last 5 years 5.33% 1.62%
Investment manager fees will be 0.60% on all assets under management.
The pension plan’s outside legal counsel, Klausner, Kaufman, Jensen and Levinson, has reviewed and approved the participation agreement and addendum for execution.
STRATEGIC PRIORITY:
Attract and retain top-quality personnel through the maintenance of a competitive compensation and benefits program.