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HomeMy WebLinkAboutMinutes Police Pension 082214 Minutes 8-22-14.doc Page 1 of 4 City of Palm Beach Gardens Police Officers’ Pension Fund Minutes of the Meeting Held August 22, 2014 The regular meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers’ Pension Fund was called to order at 9:09 AM by Jay Spencer in the Council Chambers at the Palm Beach Gardens City Hall at 10500 North Military Trail, Palm Beach Gardens, Florida. TRUSTEES PRESENT OTHERS PRESENT Jay Spencer, Chairman Audrey Ross (Resource Centers) David Pierson, Secretary Bonni Jensen (Law Offices of Perry & Jensen) Brad Seidensticker, Trustee John McCann (Thistle Asset Consulting) Greg Mull, Trustee Steve Stack (ICC Capital Management) Marc Glass, Trustee Bob Ohanesian (ICC Capital Management) INVESTMENT MANAGER REPORT ICC Capital – Presented by Steve Stack & Bob Ohanesian Mr. Stack updated the board on the Firm and commented that they recently hired 3 new portfolio managers. He introduced Mr. Ohanesian to the Board and noted that he is the portfolio manager on the fixed income account, in which this plan is invested in. The other 2 new managers do not work on this account. Mr. Ohanesian reviewed the fixed income market over different time periods and he noted that the last couple of years have been tough for their investment style, but he thinks things will be changing in the near future and they will not be behind the benchmark anymore. Mr. Ohanesian explained that the Feds have announced that they will be increasing the interest rates in 2015 but he does not think the market will wait for the change. For the quarter ending June 30, 2014 the fixed income fund was behind the index at 1.46% versus 2.05%, and for the fiscal year to date they are in the same position at 3.19% versus the benchmark at 3.79%. Mr. Ohanesian explained that they do not invest in anything under investment grade and their lowest holding is in BBB, while their largest holding is in AA. Lastly on the growth side things are getting a little better. For the quarter they were slightly behind the index at 4.43% versus 5.13% and for the fiscal year to date they are also behind at 16.20% versus the index at 17.40%. INVESTMENT CONSULTANT REPORT Thistle Asset Consulting – Presented by John McCann Mr. McCann reported that the Plan’s assets are up to $71.8M and he discussed rebalancing. Mr. McCann noted that the Rhumbline accounts are a little above the target allocation and the international equity, the ICC fixed income, and the American Realty accounts were all a little below the target allocation. American Realty is 1% below the 5% target rate and they have already called all their money at this point. Therefore Mr. McCann would recommend taking money from the equities and allocating it to American Realty. Realistically Mr. McCann stated that he would like to see the entire real estate target go up to 10%, but let’s first concentrate on getting it back up to the current allocation of 5%. The Trustees had a lengthy discussion on rebalancing the portfolio back to target and where to take the money from. Since the fixed income account is already underweighted and then Minutes 8-22-14.doc Page 2 of 4 if the board wants to take more money from that asset then they would need to change the investment policy guidelines to reflect it. Mr. McCann stated that his recommendation is to take 5% from the 3 Rhumbline accounts and allocate it to the American Realty fund. MOTION: Mr. Glass made a motion to revise the current investment policy guidelines to correct the scrivener’s error on the limitations section (this error was found while reviewing the target allocations in the IPG). SECOND: Mr. Glass seconded the motion. CARRIED: The motion carried unanimously 5-0. MOTION: Mr. Seidensticker made a motion to rebalance the portfolio back to the policy targets by taking 5% from the S&P 500 accounts and allocating it to real estate. SECOND: Mr. Glass seconded the motion. CARRIED: The motion carried unanimously 5-0. MOTION: Mr. Seidensticker made a motion to increase the total real estate target from 5% to 7.5% and to decrease the total fixed income target from 30% to 27.5%. SECOND: Mr. Glass seconded the motion. CARRIED: The motion carried unanimously 5-0. Lastly Mr. McCann reviewed the June 30, 2014 quarterly report. For the quarter the fund was up 3.47% versus 3.65% and for the fiscal year to date the fund is up 12.26% versus the index at 11.85%. Since the end of the quarter the fund is up another .5%. Overall the fund is doing very well and is nicely diversified. ATTORNEY REPORT Law Offices of Perry & Jensen - Presented by Bonni Jensen Ms. Jensen reviewed her memo regarding her transition to Klausner, Kaufman, Jensen & Levinson. She commented that this transition does not affect this Plan, other than her tax ID changing; she is still the main Attorney for this Plan. Ms. Jensen presented the board with the updated summary plan description. She explained that the document now reflects the recent collective bargaining changes as of now, but the document will need to be revised again in 2016 after some other changes are effective. She commented that she will get the updated investment pages from the Actuary before the summary plan description is distributed. MOTION: Mr. Seidensticker made a motion to approve and accept the revised summary plan description as presented. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5-0. Lastly Ms. Jensen discussed the Plan document regarding the upcoming revised interest rate and when it is credited to member’s accounts. Currently the summary Minutes 8-22-14.doc Page 3 of 4 plan descriptions states that the interest is credited to member’s accounts on September 30 of each year, but the Ordinance does not state a specific date. The Trustee’s discussed and commented that it would be better to remove the specific date of September 30 from the summary plan description. Ms. Jensen commented that she will remove that language from the summary plan description when they revise it again in 2016. ADMINISTRATOR REPORT Resource Centers – Presented by Audrey Ross Ms. Ross notified the board that they need to update the authorized signors with Salem Trust. Ms. Ross explained that overall the State money has increased for 2013. For 2013 this Plan will receive $546,748.75, which is up from $475,214.62 in 2012. This money is expected in some time in the beginning of October. MINUTES MOTION: Mr. Glass made a motion to approve the minutes from the April 17, 2014 regular meeting. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5-0. MOTION: Mr. Glass made a motion to approve the minutes from the June 19, 2014 special meeting as amended. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 5-0. DISBURSEMENTS APPROVALS MOTION: Mr. Seidensticker made a motion to approve the disbursements. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5-0. BENEFIT APPROVALS MOTION: Mr. Mull made a motion to approve the applications to enter the DROP for Kathleen Hatchett, Maria Diaz, Matt Tuman, and Thomas Gitto, the application to exit the DROP for Sheree Brown, and the applications for distribution of DROP accounts for Robert Wummer, Wayne Sidey, Sheree Brown, and George Betscha. SECOND: Mr. Glass seconded the motion. CARRIED: The motion carried unanimously 5-0. FINANCIAL STATEMENTS The board reviewed and discussed the financial statements that were provided through July 2014. Minutes 8-22-14.doc Page 4 of 4 The board received and filed the financial statements through July 2014. OTHER BUSINESS N/A PUBLIC COMMENTS N/A AJOURN There being no further business, the Trustees officially adjourned the meeting at 10:56PM. The next meeting is scheduled for Monday October 27, 2014 at 9AM. Respectfully submitted, _____________________________ DAVID PIERSON, Secretary