SUBJECT/RECOMMENDATION:
Title
Approve an agreement with Victory Capital for investment in their Sycamore Small Cap Value Equity product, and authorize the appropriate officials to execute same.
Body
SUMMARY:
One of the plan’s small cap value equity money managers, Systematic, has been recommended for termination per a previous agenda item.
At the May 2017 pension investment committee quarterly meeting, the committee requested the plan’s investment performance consultant, CapTrust Advisors, conduct a manager search for a replacement small cap value equity manager. At a special meeting of the committee during June 2017, the committee unanimously selected Victory Sycamore Small Cap Value Equity for a due diligence interview of the firm, which was subsequently conducted at the committee’s August 2017 quarterly meeting.
The pension investment committee unanimously recommends Victory Sycamore Small Cap Value Equity to the Trustees for an investment of up to $15 million, or approximately 1.5% of the total plan investment portfolio.
As of June 30, 2017, Sycamore Small Cap Value Equity’s performance over the past ten years has been as follow:
Russell 2000
Performance Value Index
Last 3 years 11.08% 7.02%
Last 5 years 15.86% 13.39%
Last 10 years 9.52% 5.92%
Investment manager fees will be 1.0% on the first $10 million; and 0.85% on the next $15 million.
APPROPRIATION CODE AND AMOUNT:
0646-07410-530100-585-000-0000 $142,500 annually