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3. Annual Investment Report / Collective Vince referenced first the Market Overview. The third
Interest Trust Education quarter was less volatile than the first two quarters and
less robust. US Equity rose by 1.2% International Equity
dropped by 1.8% and Fixed Income rose by 2.3%. Total
increases in each of those three areas YTD were 20.1%,
11.6% and 8.5% respectively. Vince then reviewed the
index and sector performances for the quarter and YTD.
He also discussed International Equity where developed
markets outpaced emerging markets. He closed this
review by focusing on fixed income and a comparison of
this and last year’s yield curve. In general, US outpaced
foreign growth although US is only slightly expanding
and Global is slightly contracting.
Vince then refreshed the Committee understanding of
the Scorecard methodology and used one of the
underperforming funds as a means of illustrating each of
the 10 components that comprise the Scorecard system.
Vince then asked the Committee to review in more detail
what it has specifically been discussing regarding
Collective Interest Trusts. He summarized the history
and growth of CITs and how NFP narrowed six asset
classes of actively managed equity funds to obtain
significantly lower overall fees. Since NFP is
recommending that two of the underperforming funds be
replaced with CITs, he wanted the Committee to
understand the pros and cons of these funds and how
they are similar to and different from Mutual Funds.
Once this education was completed Vince returned to
the specific recommendations NFP was making based
on its annual review of the County’s Investment funds.
After discussion, the Committee unanimously agreed to:
1. Have Invesco Oppenheimer Developing Mkts
R6 on the Watch List.
2. Delete the Invesco Oppenheimer International
Bd R6 and default the assets to the age-
appropriate Vanguard TDF.
3. Delete the JP Morgan Small Cap Value R6 and
the Wells Fargo Small Company Growth
Institution funds and replace them with the Small
Cap Value and Small Cap Growth Fund CITs
recommended by NFP
