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HomeMy WebLinkAbout2008 10 30 Regular 600 Recommendations from BOT Regarding Snow Capital ManagementCOMMISSION AGENDA ITEM 600 Consent Informational Public Hearin Re ular X October 30, 2008 MGR. ~~ /DEPT. Special Meeting Authorization REQUEST: Requesting the City Commission to consider the recommendations of the Board of Trustees regarding Snow Capital Management. PURPOSE: This agenda item is needed for the City Commission to consider the recommendations of the Board of Trustees regarding Snow Capital Management. CONSIDERATIONS: On Apri19, 2007, the Commission approved the recommendation of the Board of Trustees (BOT) regarding the hiring of the following new asset managers for the City's Pension Plan: A~~et (',la~~ a. Broad Growth Equity b. Broad Value Equity c. International Equity d. Investment Grade Bonds e. TIPS f. Income Opportunity -Core Real Estate BOT Recommended Manager Lateef Asset Management Snow Capital Management Freedom/Voyager Galliard Capital Management Galliard Capital Management American Realty Recently, over the past several months, the Pension Plan's Investment Advisor (Bogdahn Consulting) and the BOT have been concerned about the performance of Snow Capital Management. On October 28, 2008, the BOT discussed a recommendation from Bogdahn Consulting to now terminate the services of Snow Capital Management, due to continued underperformance. At the conclusion of those discussions, the BOT voted unanimously to recommend the following to the Commission: 1. To direct Bogdahn Consulting to issue an RFP for a new Broad Value Equity Manager to replace Snow Capital Management. 2. Upon receipt of the results of that RFP and review of said results by the BOT, to select a new Broad Value Equity Manager, terminate the services of Snow Capital Management, and transfer assets to the new manager. In accordance with procedure, the BOT would review the results of the RFP, interview a short list of prospective managers, and make a recommendation for a Replacement Broad Value Equity Manager to the Commission, which would be brought back to the Commission at that time for approval, contract execution, etc. FUNDING: The cost of manager search is included in Bogdahn's regular fee for services. RECOMMENDATION: Staff recommends the City Commission approve the recommendations of the Board of Trustees to: 1. Direct Bogdahn Consulting to issue an RFP for a new Broad Value Equity Manager to replace Snow Capital Management. 2. Authorize the 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 to the new manager will also be brought to the Commission for approval.). ATTACHMENTS: COMMISSION ACTION: