In 2012, the NYC Deferred Compensation Board decided to invest about 10% of the International Equity Fund into a small-cap international fund named Copper Rock. The investment objective of the Copper Rock Fund is to “outperform the MSCI EAFE Small Cap Index by 200 – 300 basis points gross of fees over a full market cycle”. Based on the most recent quarterly investment profile, the Copper Rock Fund has under-performed its benchmark over the most recent quarter, one year, three years, five years, and since inception (9/14/2012).
During the June 6th, 2018 NYC Deferred Compensation Board meeting a brief discussion took place regarding the performance of the Copper Rock Fund. It will be interesting to see how long it will take the NYC DCP Board to fire this investment manager. As the under performance continues, Copper Rock’s investment management fee of 60-70 basis points continues to be a drag on performance.