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HomeMy WebLinkAboutMinutes Fire Pension 030915PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND MINUTES OF MEETING HELD MARCH 9, 2015 A meeting of the Board of Trustees was called to order at 1:13PM at Council Chambers, Palm Beach Gardens, Florida. Those persons present were: TRUSTEES OTHERS Rick Rhodes, Chair Audrey Ross, Administrator Martin Cohen, Vice Chair Dan Johnson, Investment Consultant Ed Morejon, Trustee Pedro Herrera, Attorney Jon Currier, Trustee Richelle Hayes, Investment Manager PUBLIC COMMENTS N/A The Board welcomed new Trustee Jonathan Currier. Mr. Currier stated that he has already filed his From 1 Disclosure Notice. INVESTMENT MONITOR REPORT: THE BOGDAHN GROUP (DAN JOHNSON) Mr. Johnson stated that February has been the best month during the year so far. The total Plan assets are up to $73M as of February 28, 2015 which is a gain of $2.4M for the fiscal year already. During the quarter we closed out Manning and Napier and transferred the funds to EuroPacific. Mr. Johnson reviewed the performance and noted that January was a negative month, but as of February 28, 2015 the fund is 6.50% net of fees for the fiscal year to date and for the quarter they are up 3.86%. He briefly reviewed the receipt and disbursement account and noted that he came up with a policy so that there is always enough cash in the account to pay benefits and invoices, but not too much extra left over. The Plan will want to keep a target of $300K in the account with a $200K band on either side (over or under the $300K). A motion was made by Ed Morejon to approve the receipt and disbursement account instruction policy as recommended by the Plan’s investment consultant. The motion was seconded by Marty Cohen and carried 4-0. INVESTMENT MANAGER REPORT: AMERICAN REALTY (RICHELLE HAYES) Ms. Hayes welcomed herself back and updated the Board on the firm as a whole. American Realty is one of the largest real estate managers in the market with $6.7B in assets. They have 9 offices throughout the US and Ms. Hayes is based out of Orlando. American Realty has 350 institutional clients like this Plan and they hold 151 properties in the portfolio. Ms. Hayes noted that her firm has never had any litigation or legal issues. American Realty looks for properties that produce great income and return and they look in areas with strong job growth so that all their buildings will be full. She reviewed the investment team and philosophy and noted that their committee meets every Monday and the whole process takes about 3 months to either purchase or sell a property. Ms. Hayes commented that this product opened up in 2003 and this fund joined in 2006 and since than they are up 3.28% (the Plan’s initial investment was $210K and now the assets are up to $3.6M as of December 31, 2014). The debt on the fund remains low at 2 18.1% which reflects how stable their firm is and most of the debt is on a fixed rate and a small percentage of it is on a floating rate. She also noted that this fund produces income as it pays out a 1.5% dividend each quarter, in which this Plan has chosen to have reinvested back into the fund. Mr. Johnson discussed American Realty’s appraisals and noted that his firm spoke to them last quarter because they were lowering their appraisals. He stated that he now has a better understanding of what happened in the market place last quarter which lead up to the lowering of the appraisals and Mr. Johnson noted that he is comfortable with it. Lastly Ms. Hayes reviewed some properties that they currently hold in the portfolio, as well as some properties they are looking into purchasing. Mr. Johnson stated that American Realty now has a value added that Bogdahn is still looking into and Ms. Hayes stated that she would not recommend it for this Fund because we already have Intercontinental and they are similar strategies. MINUTES The Board reviewed the minutes of the regular meeting held on February 4, 2015. A motion was made by Marty Cohen to approve the minutes of the February 4, 2015 regular meeting as amended. The motion was seconded by Ed Morejon and carried 4-0. ATTORNEY REPORT: SUGERMAN & SUSSKIND (PEDRO HERRERA) Mr. Herrera updated the Board on the Legislative Session that is just about to begin. Senate Bill 1160 has been filed which is a Bill from that was carried over from last year. This Bill would affect the Chapter 175/185 Plans. Mr. Herrera commented that he will update the Board as more information becomes available. Mr. Herrera noted that the ICMA letter has been filed in regards to the DROP accounts being classified as tax exempt. ICMA will be sending a confirmation letter back as well. ADMINISTRATIVE REPORT: RESOURCE CENTERS (AUDREY ROSS) DISBURSEMENTS The Board reviewed the disbursements presented for approval by the Administrator. A motion was made by Ed Morejon to approve the disbursements as presented by the Administrator. The motion was seconded by Jon Currier and carried 4-0. NEW BUSINESS The Trustees asked Ms. Ross to get a plaque for former Trustee Mark Joyce as he served on the Board for a number of years and did a great job. OLD BUSINESS N/A OTHER BUSINESS Ms. Ross stated that she needed the Chair to sign the fiduciary insurance renewal application for 2015/2016 so that she can submit it in for a quote. The Trustees has a lengthy discussion on the policy and whether or not they should look into higher coverage or not. Their current coverage is $1M and Mr. Herrera commented that he thinks that his plenty based off the assets of the Plan. The Trustees concurred. 3 A motion was made by Ed Morejon to approve and bind the 2015/2016 fiduciary insurance renewal as long as the quote does not exceed $6,500 (and the Board will ratify it at the next meeting). The motion was seconded by Marty Cohen and carried 4-0. There being no further business, the meeting adjourned at 2:25PM. Respectfully submitted, Tom Murphy, Secretary