FROM: Thomas Kim, Chief Investment Officer
SUBJECT: Calendar Year (CY) 2027 Investment Manager Due Diligence Schedule and Exception List
RECOMMENDATION:
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Recommend that the Board approve the CY 2027 Investment Manager Due Diligence Schedule and two (2) additions to the Exception List.
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BACKGROUND:
Staff have prepared a proposed CY 2027 Investment Manager Due Diligence Schedule in accordance with SBCERA’s Due Diligence Policy (the Policy). The Policy requires on-site or remote investment due diligence for all managers at least once every three (3) years:
The preliminary due diligence schedule for CY 2027 is attached as Exhibit A. Staff anticipate thirteen (13) due diligence meetings to be conducted in person or virtually. Additional details related to each investment manager are included in the exhibit. More information regarding the number of expected trips and trip timing will be shared with the Board once that information becomes available, with the intention of providing a date certain in order to facilitate availability.
Exhibit A also includes a list of existing exceptions for investment due diligence visits. Two (2) new exceptions are being requested for Crestline and Invesco. As shown in the exception table, the managers in totality represent less than 1% of the portfolio. Investment performance will continue to be monitored, and any developments will be addressed as they occur.
For reference, Exhibit B includes a list of the due diligence meetings which have been completed in CY 2026; Exhibit C is a look-ahead to anticipated due diligence in CY 2028.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Eydie Cox
ATTACHMENTS:
Exhibit A: Proposed CY 2027 Due Diligence Schedule & Existing List of Exceptions
Exhibit B: CY 2026 Completed Due Diligence Items
Exhibit C: CY 2028 Tentative Look-ahead Schedule