HomeMy WebLinkAbout2009 02 23 Consent 206 Board of Trustees Selection of Broad Value Equity Manager for Pension PlanCOMMISSION AGENDA
ITEM 206
February 23, 2009
Regular Meeting
Consent X
Informational
Public Hearin
Re ular
MGR. ~~'`~L2.E~.
Authorization
REQUEST: City Manager requesting the Commission to approve the recommendation of the
Board of Trustees regarding selection of a new Broad Value Equity Manager for the City's
Defined Benefit Pension Plan.
PURPOSE: This agenda item is needed for the Commission to consider approval of the
recommendation of the Board of Trustees regarding selection of a new Broad Value Equity Manager for
the City's Defined Benefit Pension Plan.
CONSIDERATIONS:
On October 30, 2008, the Commission approved the following:
1. To direct Bogdahn Consulting to issue an RFP for a new Broad Value Equity Manager to
replace Snow Capital Management.
2. To authorize the Board of Trustees (BOT) to, via the RFP process, select a new Broad Value
Equity Manager to replace Snow Capital Management.
3. Upon selection of a new Broad Value Equity Manager by the BOT, to bring back that
recommendation to the Commission for approval. (At that time, a corresponding
recommendation to terminate the services of Snow Capital Management and transfer its assets
in-kind to the new manager would also be brought to the Commission for approval).
The RFP was subsequently issued and responses were received, accordingly. Then, on February 17,
2009, the Board of Trustees conducted interviews of the following Broad Value Equity Manager
candidates:
1. Anchor Capital Advisors, LLC
2. Dalton, Greiner, Hartman, Maher & Co. (DGHM)
3. Moody Aldrich Partners, LLC
After interviews and consideration, the BOT voted unanimously to select Dalton, Greiner, Hartman,
Maher & Co. and recommend them to the City Commission for approval.
FUNDING:
DGHM's stated fee for services is 0.75 basis points of assets under its management. Additionally, per
the BOT's direction, upon approval of the selection of DGHM by the Commission, Bogdahn Consulting
will make contact with DGHM in an attempt to negotiate this fee down to 0.65 basis points.
RECOMMENDATION:
The City Manager recommends that the Commission do the following:
1. Approve the recommendation of the Board of Trustees and select Dalton, Greiner, Hartman,
Maher & Co. as the Pension Plan's Broad Value Equity Manager.
2. Terminate the Services of Snow Capital Management.
3. Authorize the City Manager and City Attorney to enter into a contract for services with
Dalton, Greiner, Hartman, Maher & Co. and to facilitate the transfer of assets, in-kind, from
Snow Capital Management to Dalton, Greiner, Hartman, Maher & Co. and execute all
necessary documents required for this transfer.
ATTACHMENTS:
• Candidate Profiles (as prepared by Bogdahn Consulting).
COMMISSION ACTION:
Anchor All Cap Value AIICap Value Focused Value
1
-------------------------------y__----____--___----__-_-_____-__--_y.___-_--___-----__---------_____y
1983 1982 1988
________---~-------------------y-----------------------------------+--_____--___--------------------+
Boston New York Marblehead
1 1 1
-------------------------------y------°----°----------°---------y-°_-------'--------------------~
1 I 1
Massachusetts New York Massachusetts
1 1 1
-------------------------------y-----------------------------------~--------------------------------y
~~~ $6,369 ~ $937 ~ $794
-----_--(9/30/08) ,
..~-- --------------------~-----------------------------------;--------------------------------a
.. 1 '
Separate Account ~ Separate Account ~ Separate Account
1 ,
~, 1 1 1
~~77-------------------------------i-----------------------------------t--------------------------------;
,k l
65 75 100
1 1 1
~~i 1 1 1 1
1
~~~, i $363
~" ~^~~ ~ ~ (9/30/08) ~ $215 ~ $591
~~'3 I 1 1
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1 2 1 j 1
1
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P (9/30/08) 10 ~ 5
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i:~ ~~ ~ 20.00% 20.00% 51.00%
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a ' ht1z x %~ 80.00% ~ 80.00% ~ ---
a 1 ~ ---~
~r : ~,; ~ ;Boston Private Financial; Boston Private Financial ___
n:~ Holdings Holdings
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~~~{~,~ Relative Value ~ Relative Value ~ Relative Value
-1 1
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1 1 1
1
1
1
1
1
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' ~° 50 ~ 33 ~ 33 '
i- ; ; 1
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-------------------------------i-----------------------------------f--------------------------------~
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~.' ,d ~ 101 /0 1 49 /o
1 1 1 1
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