SUBJECT/RECOMMENDATION:
Title
Approve the fifth amendment to the agreement with Northern Trust Investments, Inc. for investment in the Northern Trust Russell 2000 Value Collective Index small cap value equity fund and authorize the appropriate officials to execute same.
Body
SUMMARY:
The Pension Investment Committee is recommending the addition of a small cap value equity index fund, replacing recently terminated money managers Atlanta Capital and Victory Sycamore.
Northern Trust Investments, Inc. is currently managing index funds for the Pension Plan. This fifth amendment adds a small cap value category of index fund to the plan’s investment portfolio.
The addition of this index fund will allow the conversion of current actively managed monies to a passive index fund with lower management fees (3 basis points versus approximately 80 basis points for the active managers).
The Pension Investment Committee unanimously recommends Northern Trust Russell 2000 Value Collective Index Fund for an initial investment of $34 million, or approximately 2.25% of the total plan investment portfolio.
As of August 31, 2026, Northern Trust Russell 2000 Value Collective Index Fund historical performance has been as follows:
Russell 2000
Performance Value Index
Last 3 years 17.59% 17.46%
Last 5 years 6.98% 6.85%
Last 10 years 10.71% 10.55%
Investment manager fees will be 3 basis points (0.03%).
APPROPRIATION CODE AND AMOUNT:
Funds are available in cost code 6467410-530100 to fund this contract for an estimated $10,200 annually.
STRATEGIC PRIORITY:
Attract and retain top-quality personnel through the maintenance of a competitive compensation and benefits program.
