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HomeMy WebLinkAboutMinutes Police Pension 053117 Minutes 5-31-17.doc Page 1 of 4 City of Palm Beach Gardens Police Officers’ Pension Fund Minutes of the Meeting Held May 31, 2017 The regular meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers’ Pension Fund was called to order at 9:07 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) Brad Seidensticker, Secretary Bonni Jensen (KKJ&L) Marc Glass, Trustee John McCann (AndCo. Consulting) Allan Owens, Trustee Grant McMurry (Highland Capital) TRUSTEE UPDATE The Trustees welcomed Mr. Owens to the Board and stated that they were glad to have him join. Mr. Owens is also the City Finance Director. INVESTMENT MANAGER REPORT Highland Capital Management – Presented by Grant McMurry Mr. McMurry stated that as of March 31, 2017 the equity fund was up 8.11% versus the index at 8.91%, but for the fiscal year they are up 10.87% versus the index at 10.01%. On the fixed income side, the fund was up 1.09% versus 0.96% for the quarter, but for the fiscal year they are down -1.77% versus -2.46%. He stated that the market remains flat and everything else remains low such as the yield and rates, even though the rates did slightly increase during the quarter. Mr. McMurry stated that they are still finding some good returns within corporates, but they will remain defensive as long as rates remain low. Overall the funds are nicely positioned and doing well. INVESTMENT CONSULTANT REPORT AndCo. Consulting – Presented by John McCann Mr. McCann stated that we now have 4 index funds with Rhumbline that are outperforming the index. Also Rhumbline can now have daily liquidity/trading versus trading only on the first of the month, which gives them better discretion and when it comes to trading and that is beneficial for the Plan. Mr. McCann reported that for the quarter ending March 31, 2017 the total fund for the quarter was slightly behind the index at 3.95% versus 4.02%, but for the fiscal year they are ahead at 6.44% versus the index at 5.81%. Financials was the leading sector during the quarter and information technology was the worst performing. He briefly reviewed the Plan’s compliance checklist and commented that everything is checked of “yes” which was good and the Plan is incompliance. Mr. McCann discussed each manager’s performance and stated that American Realty still has $2M to call to be invested. Mr. McCann noted that he does not have any recommendations at this time for rebalancing or in regards to any of the managers. Overall the fund is doing very well almost already above the Plan’s assumed rate of return for the fiscal year. Mr. McCann stated that he spoke to Rhumbline regarding their fees because they are not consistent throughout all the accounts and all their clients. Therefore Rhumbline Minutes 5-31-17.doc Page 2 of 4 set their fees at 5 basis points across the board for all Plan’s and clients. It will save this Plan’ about $7K a year. These new fees are effective July 1, 2017. Also Mr. McCann noted that he lowered his fees by $1,200 as well since he is no longer reviewing and tracking the international equity account. When the bond accounts are moved over, he will lower his fee again by another $1,200. ATTORNEY REPORT KKJ&L - Presented by Bonni Jensen Ms. Jensen reminded the Trustees that their Annual Form 1 Disclosure Forms are due July 1, 2017. Ms. Jensen reviewed her memo regarding the top 10 internal controls to prevent and detect fraud. These are different ways to double check that this Board is doing everything they can to prevent and detect fraud within the Plan. Regarding different insurance coverages, she noted that this Plan already has crime insurance and she will also bring more information to the next meeting regarding cyber insurance to see if it is something the Plan should be looking into further or not. Ms. Jensen noted that the IRS mileage rate decreased from 54 cents to 53.5 cents effective January 1, 2017. Ms. Jensen reviewed the Miami Beach fraud issue that recently occurred. She explained what happened and commented that now would be a good time for this Plan to double check their securities with their service providers and to also look into cyber liability insurance coverage which can also protect the Plan against multiple other uses. Ms. Ross will look into having someone attend a Board meeting to discuss cyber liability coverage and to give some quotes. Lastly Ms. Jensen stated that they tabled the approval of the SPD at the last meeting until the Share accounts/State money resolution is made so that language can be added into the document. Mr. Glass stated that he does not have a definitive update at the moment as they are waiting on the Actuary to get the figures back to the PBA so that the active membership can vote on what they are going to do in regards to distributing the money to the individual Share accounts (the default 50/50 split is effective, but the agreement on how the Share accounts are funded has not been reached). ADMINISTRATOR REPORT Resource Centers – Presented by Audrey Ross Ms. Ross presented the Board with the administrative budget for the upcoming fiscal year beginning October 1, 2017. This report also reflects the actual expenses for the fiscal year ending September 30, 2016. This admin budget will be filed with the Plan Sponsor. MOTION: Mr. Glass made a motion to approve the administrative budget for the fiscal year beginning October 1, 2017 and the actual reported expenses for the fiscal year ending September 30, 2016 as presented, and to be filed with the Plan Sponsor. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 4-0. Minutes 5-31-17.doc Page 3 of 4 MINUTES MOTION: Mr. Glass made a motion to approve the minutes from the March 9, 2047 regular meeting and the April 28, 2017 special meeting as amended. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 4-0. DISBURSEMENTS APPROVALS MOTION: Mr. Seidensticker made a motion to approve the disbursements. SECOND: Mr. Glass seconded the motion. CARRIED: The motion carried unanimously 4-0. BENEFIT APPROVALS MOTION: Mr. Seidensticker made a motion to approve the benefit approval list dated May 31, 2017 as presented. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 4-0. FINANCIAL STATEMENTS The board reviewed and discussed the financial statements that were provided through April 2017. The board received and filed the financial statements through April 2017. OTHER BUSINESS Ms. Ross presented the Board with the Salem Trust custodial service report for the quarter ending March 31, 2017. Mr. Spencer discussed implementing some kind of Trustee educational policy that states each current Trustee must attend the Division of Retirement conference once a term as it is a very educational conference to attend and is also no charge for attending. The Trustees discussed the policy and stated that they will look into creating something. PUBLIC COMMENTS N/A AJOURN There being no further business, the Trustees officially adjourned the meeting at 10:24AM. The next meeting is scheduled for Friday September 15, 2017 at 1PM. Respectfully submitted, _____________________________ Brad Seidensticker, Secretary