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HomeMy WebLinkAboutMinutes Fire Pension 050416PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND MINUTES OF MEETING HELD MAY 4, 2016 A meeting of the Board of Trustees was called to order at 1:03PM 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 Tom Murphy, Secretary Pedro Herrera, Attorney Ed Morejon Jon Currier PUBLIC COMMENTS N/A MINUTES The Trustees reviewed the minutes of the March 7, 2016 regular meeting. Tom Murphy made a motion to approve the March 7, 2016 minutes. The motion was seconded by Jon Currier and it carried 5-0. INVESTMENT MONITOR REPORT: THE BOGDAHN GROUP (DAN JOHNSON) Mr. Johnson briefly reviewed the historically S&P500 returns. He noted that since the market low on February 11, 2016 the market it back up 12.95%. Mr. Johnson reviewed the March 31, 2016 quarterly performance report. During the quarter bonds were up 3% which is very strong for fixed income, although we should not expect that going forward. It was a rough quarter for active management. He discussed the Treasury yield curve and noted that when the Feds raised rates the yield curve flattened out and dropped off as bond managers were paying a little more for the bonds. As of March 31, 2016 the total Plan assets were up to $77.5M, which was a gain of $344,969 after all expenses. For the quarter the total fund net of fees was behind the index at 0.89% versus 1.67%, and for the fiscal year to date the fund is up 4.23% versus the index at 5.50%. Mr. Johnson briefly reviewed each manager’s performance during the quarter and noted that both Dana accounts and both international equity accounts were negative; again it was a tough quarter for active management. Mr. Johnson notified the Board that the Dana rep, John Hamilton, who previously attended the meetings has recently passed away unexpectantly. He noted that this sad event does not have any impact on the portfolio or the performance directly and Dana is working on a replacement for his position. Mr. Johnson discussed the negative interest rates, in which is occurring overseas. Real Estate is doing well and adding a lot of return to the portfolio as well as domestic fixed income. Mr. Morejon explained that he recently attended the FPPTA New York stock exchange trip and shared all the great information he learned, including adding in more diversification to the portfolio. Mr. Johnson stated that fixed income is a rough place right now because of the low interest rates and the asset class itself will not be adding in a big return. Therefore these are all things the Board needs to consider when diversifying out of bonds. Mr. Johnson briefly shared some of the alternatives that he has been looking at for this Plan and will bring back some information to the Board in the 2 near future. Lastly Mr. Johnson passed out the March 31, 2016 ICMA DORP review and noted that all is well here. Mr. Johnson reviewed the global fixed income overview and manager evaluation. He explained why you would want to extend the bond portfolio beyond core domestic; to add diversification, risk, and growth of the global credit market. He reviewed the opportunities and risk of the non US dollar bonds and reviewed the different managers that offer global fixed income and how they compare to each other as well as the Plan’s current manager Templeton. Mr. Johnson stated that he is still comfortable with this asset class and the manager, but he just wanted the Board to know there were other options as well. Overall it has been a rough market for fixed income and he discussed the correlations between the fixed income managers and the other managers in the portfolio. The Trustees had a lengthy discussion and asked about splitting out some of the Templeton portfolio with another manager to add diversification. Mr. Johnson stated that it is a good concept but nothing they need to act upon at the moment and therefore he will review the portfolio and bring back more information to the next meeting. The Board did not take any action. ATTORNEY REPORT: SUGERMAN & SUSSKIND (PEDRO HERRERA) Mr. Herrera presented the Board with the DROP distribution policy. The Board made some revisions. Mr. Herrera stated that he will bring back the final version to the next meeting for approval. Mr. Herrera notified the Board that there were no 175/185 Bills passed this Legislative session. Mr. Herrera updated the Board on the on the Bancorp South case. It is now a class action case and this Plan is the lead plaintiff in the case. The Attorneys are currently moving forward in the discovery phase, in which that deadline is September 2016. Mr. Herrera stated that he will update the Board going forward as more information becomes available. He explained that most of the work has already been completed on behalf of the Plan and any kind of proposal or settlement will be brought back in front of the Board. ADMINISTRATIVE REPORT: RESOURCE CENTERS (AUDREY ROSS) DISBURSEMENTS The Board reviewed the disbursements presented for approval by the Administrator. A motion was made by Marty Cohen to approve the disbursements as presented by the Administrator. The motion was seconded by Marty Cohen and carried 5-0. BENEFIT APPROVALS The Board reviewed the benefit approval list dated May 4, 2016 as presented by the Administrator (application for distribution from Share account for Catherine Mauser). A motion was made by Tom Murphy to approve the application for distribution of Share account for Catherine Mauser. The motion was seconded by Jon Currier and carried 5-0. 3 Ms. Ross stated that they are reviewing the Actuary contract today as they review all their service providers periodically. The Trustees discussed and agreed that they were happy with the service provided by the Actuary and there was no need for change. Ms. Ross reminded the Trustees that their annual form 1 disclosure form is due July 1, 2016. Ms. Ross stated that the first quarter GH&A report was uploaded to the drop box for the Boards review. OLD BUSINESS N/A OTHER BUSINESS Ms. Ross stated that Mr. Rhodes was re-elected by the City Council to continue serving on the Board, with his new term set to expire on September 30, 2019. There being no further business, the meeting adjourned at 2:44PM. Respectfully submitted, Tom Murphy, Secretary