FROM: Don Pierce, Chief Investment Officer
SUBJECT: Calendar Year (CY) 2021 Investment Manager Due Diligence Schedule and Exception List
RECOMMENDATION:
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Recommend that the Board approve the CY 2021 Investment Manager Due Diligence Schedule and Exception List.
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BACKGROUND:
Staff has prepared a proposed CY 2021 Investment Manager Due Diligence Schedule in accordance with SBCERA’s Due Diligence Policy (the Policy). The Policy requires investment due diligence for all managers at least once every three (3) years:
On-site or remote investment due diligence is required for all managers, at least once every three years. Typically, managers will be subject to such due diligence every other year. Managers that will not be visited at least once every three years must be approved for exception by the Board.
Due to the COVID-19 pandemic and for the health and safety of our staff, trustees and investment managers, staff anticipates that investment due diligence for CY 2021 will be conducted virtually, as it has been for most of CY 2020. The preliminary due diligence schedule for CY 2021 is attached as Exhibit A. This schedule also includes a list of existing exceptions for investment due diligence visits. No new exceptions are being requested at this time. Should circumstances related to COVID-19 substantially change in CY 2021, staff will consult with the Investment Committee as to whether an on-site visit would be more appropriate to comply with the Board’s policy.
For reference, Exhibit B includes a list of the due diligence meetings which have been completed in CY 2020; Exhibit C is a look-ahead to anticipated due diligence in CY 2022.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Eydie Cox
ATTACHMENTS:
Exhibit A: Proposed CY 2021 Due Diligence Schedule & Existing List of Exceptions
Exhibit B: CY 2020 Completed Due Diligence Items
Exhibit C: CY 2022 Tentative Look-ahead Schedule