Delray Beach (Fla.) Police & Firefighters Pension Board authorized Benchmark Financial Services to continue its fiduciary review of the $100 million pension fund's consultant, Smith Barney Consulting Services, and its custodian, Wachovia, over a money market account it runs for the board, said William Adams, board chairman.
"There are things (Benchmark) hadn't been provided," he said. Smith Barney "has not provided total compensation (it) derived from the fund," Mr. Adams said.
Other issues Benchmark will pursue include examining compliance on most-favored-client clauses to ensure that managers which have such agreements with the board are charging their comparable lowest fee, Mr. Adams said. "There may be a better way for the board to negotiate (fee terms), he said.
The board also authorized a review of Wachovia's use of an Evergreen money market fund as part its custodial arrangement to determine, among other things, if Wachovia has a revenue-sharing agreement with the Evergreen fund, if that agreement was disclosed to the board, and if the board's fee was reduced to reflect any revenue sharing, Mr. Adams said. Wachovia owns the Evergreen fund.
Ernie Mahler, Smith Barney consultant, said the fund's board hasn't informed him of its action. Elizabeth Hodges, Wachovia corporate communications manager, said company officials won't comment about a client.