New advisors to manage township investments

November 1, 2019

The exit of NorthPointe Capital from the market means a new investment advisor will manage about $8.8 million of Bloomfield Township's Defined Benefit Pension Plan investments in the near future.

 

On Wednesday, October 30, members of the township's financial sustainability committee approved bringing on Ancora advisors to manage the funds, which will target investments focusing on dividend growth. 

 

The roughly $8.8 million is part of some $212 million that is part of the township's defined benefit pension plan, which is split into several investment funds.

 

Bloomfield Township Treasurer Brian Kepes, who serves on the recommending committee, said the transition equates to very little change in the overall investment of funds. “Instead of seeing NorthPointe on that account, you'll see Ancora," he said.

 

The committee, which was formed in 2015 to assist the treasurer and trustees in making better informed financial decisions, is a non-decision making advisory board. The financial sustainability meeting followed a presentation earlier this year by accountants from UHY who noted in the township's annual audit that investment earnings increased by about $370,000, or 57 percent, due to a change in investment strategy.

 

Kepes said that strategy, which is set by the township board, has saved the township significant fees and given the township more control over how funds are invested.

 

The township's restructuring of a longtime contract with Prudential Retirement Insurance and Annuity, which holds about $148.1 million of the township's defined benefit pension plan, was done after trustees in 2014 became aware that the plan was woefully underperforming, and had done so for nearly a decade.

 

The committee, at the recommendation of financial advisors, chose Ancora over JP Morgan and Vanguard.

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