01-22-2002AGENDA
PENSION TRUSTEES
01/22/02
ACTION AGENDA
Board of Trustees of the Employees' Pension Fund
9:00 A.M. - Tuesday, January 22, 2002
1. Call to Order 9:19 a.m.
2. Approval of Minutes: 01/07/02 - Approved as submitted
3. Terminate the contract with 3 Bridge Capital as a large cap value equity manager.
Approved
4. Approve an expenditure of not to exceed $5,000 (at $210 per hour) to the law firm of
Christiansen & Dehner for updating and modifying existing money management
contracts. Approved
5. Other Business
6. Adjourn 9:24 a.m.
pfa 01-22-02 Agenda.doc
1
Employee Pension Plan Trustee
Agenda Cover Memorandum
Worksession Item #: ?' ja N 3
Final Agenda Item #
Meeting D.ite: V/ old O,
SUBJECT/RECOMMEN DATION:
Terminate the contract with 3 Bridge Capital as a large cap value equity manager
0 and that the appropriate officials be authorized to execute same.
SUMMARY:
• For the year ending September 30, 2001 3 Bridge has performance at the 99th percentile (98% of large
capital value equity managers outperformed them).
• During the last year the Pension committee has been concerned about 3 Bridge and has reduced the
money they manage on 3 separate occasions. At October 31, 2001 they had $24,480,169 under
management down from $85,236,247 on October 31, 2000.
• Earlier this year the Trustees added a large cap value manager (Capital Guardian) with the intention that if 3
Bridge did not improve their performance they would be terminated.
• Both of the plan's financial advisors and the Pension Investment Committee recommend termination of the
contract with 3 Bridge Capital at this time.
• Our contract with 3 Bridge requires us to give thirty days Written notice of termination.
• Staff recommends that the funds taken from 3 Bridge be divided between Ark (deep discount large cap
value) and Capital Guardian (large cap relative value) such that after the distribution both Ark and Cap have
approximately the same amount of money.
Reviewed by: Originating [e?
1 Costs
Legal N/A Info Srvc N/A Financ;
S Moskun Total N/A
Budget N/A Public Works N/A User Dept. Funding Source:
Purchasing N/A DCM/ACM Finance Current FY N/A CI
Risk Mgmt N/A Other Attachments OP
Other
Submitted by:
City Manager None Appropriation Code:
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Employee Pension Plan Trustee
Agenda Cover Memorandum
Worksession Item #: el to 'ii
Final Agenda Item #
Meeting Date: /
SUBJECT/RECOMMEN DATION:
Approve an expenditure of not to exceed $5,000 (at $210 per hour) to the law firm of Christiansen &
Dehner for updating and modifying existing money management contracts,
0 and that the appropriate officials be authorized to execute same.
SUMMARY:
• The Employees Pension Plan currently has the following investment related contracts that the pension
attorney should review:
Money Managers:
Aeltus Investment Management Ark Asset Management
Denver Investment Advisors Invesco Global Asset Management
Putnam Investments EPW Investment Management
Sirach Capital Management Vanderbilt Capital Advisors
Investment Advisor, Equity:
Performance Measurement:
Safekeeping:
Sun Trust
State Street
EPW Investments Management
Callan Associates
• While all of these contracts have been approved by legal counsel some of the contracts are over 20 years
old and need updating.
• Lee Dehner believes that he can update all of the above contracts fora fee of not to exceed $5,000.
• Two contracts that he would not be reviewing would be that of 3 Bridges, which we are terminating, and
that of Capital Guardian, which he has already reviewed.
• The current budget for legal services of $50,000 is sufficient to cover this expenditure.
Reviewed by: Originating Dept: Costs
Legal N/A Info Srvc N/A S Moskun Finance Total $5,000
Budget Public Works N/A User Dept. Funding Source:
Purchasing /A DCM/ACM Finance Current FY $5,000 CI
Risk Mgmt NIA Other Attachments OP
Other Earnings
Submitted by:
City Manager ® None Appropriation Code: 646-07410-530100-585.000
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