ITEM TITLE:
Approval of Permanent Fund Investment with QMA Small Cap Core Equity Fund for $5.09MM.
SUBMITTED BY: Brian Carlson, Finance Director
FISCAL NOTES:
Expenditure Required: $5,085,000
Unencumbered Balance: $5,085,000
Funding Source: 607.1004.10354, Permanent Fund; proceeds from RBC Small Cap liquidiation;
RECOMMENDATION:
Approve
SUMMARY STATEMENT:
• During the May 16th quarterly meeting the Permanent Fund Committee unanimously approved replacing an underperforming manager (RBC Small Cap) with a new manager, QMA Core Small Cap Core Equity Fund.
• Finance staff liquidated the RBC account in July, and proceeds total approximately $5.083MM.
• Legal has reviewed the attached documents and has approved them as to form.
• Upon approval, Finance staff anticipates funding this investment within five business days.
• Attachments (3):
o QMA Fund Declaration - high-level summary of the fund management, characteristics, and risk profile
o QMA Offering Memorandum - full details of Fund Declaration summary. Table of contents is on page 7.
o QMA Subscription Trust Agreement - the City’s application for investment in the commingled mutual fund