HomeMy WebLinkAboutMinutes Police Pension 090309City of Palm Beach Gardens Po /ice Officers'
Pension Fund
Minutes of the Meeting Held
SEPTREMBER 3, 2009
The regular meeting of the Board of Trustees of the City of Palm Beach Gardens
Police Officers' Pension Fund was called to order at 3:03 AM by Wayne Sidey 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 (arrived 3:51) Audrey Ross (The Pension Resource Centers)
David Pierson, Secretary Bonni Jensen (Law Offices of Perry & Jensen)
Brad Seidensticker, Trustee Donna Cannon (PBG Clerk's Office)
Jules Barone, Trustee (departed 3:51) John McCann (Thistle Asset Consulting)
Wayne Sidey, Trustee Steve Stack (ICC Capital Management)
INVESTMENT MANAGER REPORT
ICC Capital — Presented by Steve Stack
Mr. Stack updated the board on the current market environment. He reported that
financials have led certain stock rallies recently and that he thinks that technology
will continue the rally out of the recession. Mr. Stack commented that he likes the
way their portfolio is positioned and they should benefit from it in this current
market.
Mr. Stack reported that they put a lot of money back to work in April and May which
was also a benefit. As of date, the equities are up by 11.32% and the fixed income
is also up by 3 %. On the fixed income side they traded some 10 year bonds and
bought some 30 years bonds and American bonds. Mr. Stack commented that they
are only looking at new issuance so they are trying to find some good yields. He
reported that the corporate bonds have been out performing and as far as the fixed
income side they are staying short on the duration, in which the average duration on
the fixed income side is 3.94% due to the pooled (mortgage) funds. Mr.
Seidensticker commented that he is more worried about deflation than inflation at
this time.
Lastly, Mr. Stack stated that he would like the Board to allow them to invest in BBB
bonds in the future and explained why. Ms. Jensen commented that it would take an
Ordinance change to allow that.
INVESTMENT CONSULTANT REPORT
Thistle Asset Consulting — Presented by John McCann
Mr. McCann reported that it was a great quarter with international up by 25% and
the fixed income also did great. He reviewed the asset allocation for the quarter
ending June 30, 2009 and reported that there is 57% in equities, 36% in fixed
income and 7% in cash. Mr. McCann commented that this fund has a great
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diversified portfolio at this time. He stated that there is no need for any more
rebalancing at this time; we will just let the equities do the work. Within the last 2
months the portfolio is up about $4M which is about 14 %.
Mr. McCann reviewed the returns for the quarter ending June 30, 2009. The total
fund was positive but behind the benchmark at 9.93% versus 12.71 %, the total
equities did great this quarter at 17.80% versus the benchmark at 18.79% and the
total fixed income out performed at 1.90% versus 1.79 %. Mr. McCann then
reviewed the performance for the quarter by each manager:
• Rhumbline S &P 500 - Slightly behind the benchmark at 15.87% versus
15.93 %.
• Rhumbline S &P 400 -
Had a great quarter at 18.66% versus the benchmark
at 18.75 %.
• Rhumbline S &P 600 -
Almost outperformed the benchmark at 20.81% versus
21.06 %,
• ICC Large Cap Eguity
- This portfolio is actively managed and had a good
return for the quarter but still behind at 15.01% versus 16.32 %.
• International Eguity -
Underperformed the benchmark slightly at 25.01%
versus 25.85 %.
Mr. McCann reported that all junk bonds did well within the quarter which this fund
does not buy into. They fund is taking less risk and is getting a better return. He
commented that the fund is doing great with good diversification.
Mr. McCann reviewed the revised Investment Policy Guidelines that he presented to
the board. He explained that he revised the items that pertained to the new law
changes, but in order to abide by the new changes an Ordinance change would need
to take place. Ms. Jensen stated that she will review the changes that were made
and get back to the board at the next meeting.
Lastly, Mr. McCann reviewed some information pertaining to Israel bonds. He
commented that it would be a great diversification to add into the portfolio, but he
would like to know how much the Board would be considering to put into this
investment. Mr. Stack commented that the yields are adequate, but you are in it for
the duration of the bond and you probably won't get the kind of yield that you want.
The board agreed not to move forward with this kind of investment.
ADMINISTRATOR REPORT
Resource Centers - Presented by Audrey Ross
NA
ATTORNEY REPORT
Law Offices of Perry & Jensen - Presented by Bonni Jensen
Ms. Jensen reviewed the revised tax withholding tables that were recently published
by the IRS. Ms. Ross stated that we notified the members of this change if they
wanted to take advantage of it although it is not mandatory.
Ms. Jensen reviewed the addendum to the Administrative agreement that has been
revised due to Tegrit converting back to their old name, The Pension Resource
Centers.
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MOTION: Mr. Barone made a motion to approve the addendum to the
Administrators agreement.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 4 -0.
Ms. Jensen reported the changes that were made to the State Statute.
• Can expand Trustee terms from 2 years to 4 years and she reviewed the
advantages and disadvantages of this.
• To allow retires to make 3rd party insurance payments so they will then be
eligible for the $3,000 deductions.
• Foreign investments have increased from 10% to 25 %.
• They want the fund to identify the scrutinized companies and not to invest in
them. Ms. Jensen reviewed the scrutinized companies they would be
referring to and commented that the State has a list that identifies which
companies are in compliance.
• Members can change their beneficiaries up to two times with out notification
to the board.
• Lastly, if a Municipality was to close the pension plan, than everyone must be
paid out.
The board had a lengthy discussion on all the different changes.
MOTION: Mr. Spencer made a motion to approve expanding the Trustee
terms from 2 years to 4 years effective next term.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 4 -0.
MOTION: Mr. Sidey made a motion to allow retirees to make 3rd party
insurance premiums.
SECOND: Mr. Spencer seconded the motion.
CARRIED: The motion carried unanimously 4 -0.
MINUTES
MOTION: Mr. Seidensticker made a motion to approve the minutes from
the April 30, 2009 regular meeting.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 4 -0.
DISBURSEMENTS APPROVALS
MOTION: Mr. Seidensticker made a motion to approve the
disbursements.
SECOND: Mr. Sidey seconded the motion.
CARRIED: The motion carried unanimously 4 -0
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INANCIAL STATEMENTS
The board reviewed and discussed the financial statements that were provided
through July 31, 2009.
The board received and filed the financial statements through July 31,
2009.
BENEFIT APPROVALS
MOTION: Mr. Spencer made a motion to approve the benefit approvals
for David O'Neill, Diego Artola, Glenn Brown and Robert
Wummer.
SECOND: Mr. Sidey seconded the motion.
CARRIED: The motion carried unanimously 4 -0
OLD BUSINESS
NA
OTHER BUSINESS
The board reviewed the letter that they received from the Division of Retirement
accepting all prior Actuarial Reports. Ms. Ross notified that board that Mr. Palmquist
has reviewed this letter as well and stated that there is no action that needs to take
place.
AJOURN
There being no further business, and the future meetings are scheduled for the last
Thursday of the first month of the quarter. The next regular meeting is scheduled for
Thursday October 29, 2009 at 9AM; the Trustees officially adjourned the meeting at
4:14PM.
Respectfully submitted,
DAVID PIERSON, Secretary
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