SUBJECT/RECOMMENDATION:
Title
Approve an agreement with Northern Trust Investments, Inc. for investment in the Northern Trust Collective Russell 1000 Growth Index large cap growth equity fund and authorize the appropriate officials to execute the same.
Body
SUMMARY:
The Pension Investment Committee is recommending the addition of a large cap growth equity index fund, to complement the current large cap growth equity fund actively managed by Voya.
The addition of this index fund increases the diversification of the large cap growth equity category by allocating a portion of the current actively managed monies to a passive index fund with lower management fees.
The Pension Investment Committee unanimously recommends Northern Trust Collective Russell 1000 Growth Index Fund for an initial investment of $30 million, or approximately 2.7% of the total plan investment portfolio.
As of June 30, 2020, Northern Trust Collective Russell 1000 Growth Index Fund historical performance has been as follows:
Russell 1000
Performance Growth Index
Last 3 years 18.95% 18.99%
Last 5 years 15.87% 15.89%
Last 10 years 17.25% 17.23%
Investment manager fees will be 3 basis points (0.03%) with a cap on administrative fees of 1 basis point (0.01%).
The pension plan’s attorney, Klausner, Kaufman, Jensen and Levinson, has reviewed and approved the fourth amendment to the Collective Custody Agreement and the Equilend Notice and Consent required to execute this agreement.
APPROPRIATION CODE AND AMOUNT:
6467410-530100 $12,000 annually