For the last three years, the San Diego County Employee Retirement Association has outsourced its investment strategies. Now, with the initial contract coming to a close, they will decide whether or not to renew with the texas-based consultant.
The arguments for extending the contract are simple: since Lee Partridge was brought on, the fund has won a national award for public pension funds, has reduced risk, and has increased returns.
However, that success has not been cheap. Partridge’s contract is worth up to $4.5 million for 39 months of service.
That’s why the discussion will be more than just renewing the current contract. Some are hoping the work will be put out to a competitive bid to help drive a better deal. Until 2009, the fund had used an internal investment strategist.
From the UT San Diego:
Officials at the $8.6 billion county retirement fund outsourced their investment strategy to a Houston consultant in 2009, and the contract expires at the end of this year.
At Thursday’s board meeting, the San Diego County Employees Retirement Association will decide whether to renegotiate that contract with consultant Lee Partridge, put it out to bid or to hire someone to do the job in-house.
Read the full article here.