HomeMy WebLinkAboutAgenda Fire Pension 061810"¢ THE RESOURCE CENTERS, LLC
y 4360 Northlake Boulevard, Suite 206 ❖ Palm Beach Gardens, FL 33410
Phone (561) 624 -3277 ❖ Fax (561) 624 -3278 ❖ www.RESOURCECENTF-RS.COM
PALM BEACH GARDENS FIREFIGHTERS'
PENSION FUND
Special Meeting of Friday, June 18, 2010
Location: Council Chambers, Palm Beach Gardens City Hall
10500 North Military Trail
Palm Beach Gardens, FL 33410
Time: 9:00 A.M.
AGENDA
1. Call Meeting to Order
2. Investment Monitor Report: Bogdahn Consulting
Domestic Equity Investment Strategy Review
Revised Investment Policy Statement
3. Other Business
4. Schedule Next Meeting: Monday, July 26, 2010 at 9:00 A.M.
5. Adjourn
PLEASE NOTE:
Should any interested party seek to appeal any decision made by the Board with respect to any matter
considered at such meeting or hearing, he will need a record of the proceedings, and for such purpose he
may need to insure that a verbatim record of the proceedings is made, which record includes the testimony
and evidence upon which the appeal is to be based. In accordance with the Americans With Disabilities
Act of 1990, persons needing a special accommodation to participate in this meeting should contact The
Resource Centers, LLC no later than four days prior to the meeting.
r", Exhibit A Addendum
Revised Fee Schedule for Balanced Accounts Effective April I, 2007
(Annual Rate)
Fixed Income Assets: All Assets 25 Basis Points
Equity Assets: $0 -3 Million 75 Basis Points
Over $3 Million 60 Basis Points
This addendum shall supersede the Fee Schedule in Exhibit A of the Balanced
Investment Advisory Agreement between the Board of Trustees of the City of Palm
Beach Gardens Firefighters' Retirement System Pension Fund and Dana Investment
Advisors, Inc. dated May R, 2002. The fee schedule contained herein shall become
effective as of April 1, 2007.
The revised fee shall be payable quarterly in arrears and shall be computed upon the
market value of the total assets covered by this Agreement as of the last day of the
preceding quarter end. If the services to be rendered hereunder shall commence on a day
other than the first day of the above months or terminate other than on the last day of
December, March, June, or September, the above fee shall be fairly and equitably
prorated. Total assets shall mean the sum of the values taken at market of all the
Investment Assets. If during the quarter assets are added or deleted by the Client and
('^ made subject to or removed from management of the Manager, then the above fee shall
be equitably prorated with respect to such added or deleted assets. In the event of
termination, total assets for fee purposes shall mean the account value at the date of
notice of termination. The fee is guaranteed not to increase for a period of three years
from this date of this agreement.
ATTEST: Board of Trustees of the City of Palm Beach
Gardens Firefighters' Retirement System
Pension Fund #715
Secretary Cha 716n
c�'7
Date of Execution
Dana Investment Advisors, Inc.
By: ti � �.�'11 e -t
Mark R. Mirsberger, O
INVESTMENT MANAGEMENT AGREEMENT
AGREEMENT made as of this .� day of Ile( L , 2002, by and between
City f Palm Beach Gardens Firefighters' Retirement System ereinafter referred to as the
Y b
"Retirement System "), and Dana Investment Advisors, Inc., (hereinafter referred to as the
"Investment Manager ").
W ITNESSETII:
WHEREAS Part 11, Chapter 38, Section 38- 54(a)(1) of the City of Palm Beach Gardens
Code establishes the Retirement System and a related trust for the purpose of providing benefits
to certain employees and paying; the expenses related thereto, and
WHEREAS Section 38- 54(a)(3) of the City of Palm Beach Gardens Code authorizes the
Retirement System's Board of Trustees to engage the services of an investment advisor to
manage the Retirement System's assets, and
WHEREAS the Retirement System desires to grant the Investment Manager, as the term
is defined in Section 3(38) of the Employee Retirement Income Securities Act of 1974, the
authority to manage a certain portion of the Retirement System's assets (hereinafter referred to
as the "Fund ") upon the terns and conditions set forth below,
NOW. THEREFORE, in consideration of the foregoing and of the mutual covenants and
agreements contained herein, the parties agree as follows:
Section I
INVESTMENT NIANAGEIMENI' SERVICES AND AUTHORITV
The Retirement System appoints the Investment Manager as the Retirement System's
agent with respect to the Fund with full authority to buy, sell, and trade securities and to
otherwise direct the investment of the fund subject to such limitations as the Retirement System
may impose, the Retirement System's Statement of Investment Policy & Objectives, Section 38-
54 of the City of Palm Beach Gardens Code, Chapter 112, Part VII (the "Florida Protection of
Public Employee Retirement Benefits Act ") and Chapter 175, Florida Statutes, for the
Retirement System's account and in the Retirement System's tiante. The Investment Manager,
as agent with respect to the Fund, when it deems appropriate, without prior consultations with
the Retirement System, may (a) buy, sell, exchange, convert and otherwise trade in any
securities, and (b) place orders for the execution of such securities transactions with or through
such brokers, dealers or issuers as the Investment Manager may select, subject to Section 2
hereof. Should the Investment Manager purchase any securities not allowed or prohibited by the
Retirement System's Statement of Investment Policy & Objectives, the City of Palm Beach
Gardens Code or Chapter 175, Florida Statutes, then the Investment [Manager shall promptly
dispose of such securities and reimburse the Retirement System ('or any loss of principal and
return as a result of said investment.
Section 2
PROCEDURE
All transactions will be consummated by payment to or delivery by, a Custodian of the
Retirement System, as the Retirement System shall appoint in writing, of all cash and/or
securities due to or from the Retirement System. The Investment Manager is authorized to give
instructions to the Custodian as may be appropriate in connection with the settlement of
transactions initiated by the Investment Manager pursuant to Section 1 hereof.
The Retirement System will instruct the Custodian to provide the Investment Manager
with such periodic reports concerning the status of the Retirement System as the Investment
Manager may reasonably request.
In directing investments under this Agreement, Investment Manager will select the
brokers or dealers through or with whom investment transactions are to be effected with respect
to the Retirement System and will place all buy and sell orders with respect thereto. The
Retirement System hereby directs that Investment Manager obtain for the Retirement System in
such transactions the best execution and price but authorizes Investment Manager, consistent
with the foregoing, to select brokers and dealers on the basis of their having furnished statistical,
research and other services to Investment Manager which are used by the Investment Manager in
the management of Retirement System's account or, consistent with the foregoing, to select
brokers and dealers on the basis of requests by the Retirement System to select brokers who
furnish commission rebates, investment monitoring services or other services to the Retirement
System.
Section 3
APPRAISAL OF ACCOUNT
The Investment Manager will provide the Retirement System with a quarterly
appraisal of the Retirement System's assets. Such appraisal shall be in the form of a written
summary of assets to the Retirement System on the appraisal date. Securities shall be valued at
the last known bid price according to a nationally recognized pricing service. Other assets will
be valued in a manner determined in good faith by the Investment Manager to reflect its fair
market value.
Section 4
FEES
The Investment Manager shall be paid in accordance with the fee schedule attached
hereto as Exhibit "A" and made a part hereof by this reference. Fees shall be billed by the
Investment Manager quarterly in arrears based upon the fair market value of the assets of the
Fund on the last day of each quarter. The Retirement System shall be billed directly for fees and
the fees shall not be automatically deducted from or paid from the Fund.
Section 5
AMENDMENT AND TERMINATION
At any time and from time to time, this Agreement may be amended in whole or in part
by written instrument executed by the parties hereto.
The Retirement System may terminate this Agreement at any time upon giving the
Investment Manager written notice of termination at least thirty (30) days prior to the effective
date of such termination. The Investment Manager may terminate this Agreement upon giving
the Retirement System written notice of termination, at least sixty (60) days prior to the effective
date of such termination. In the event of termination, and within a reasonable time after the
effective date of such termination, the Investment Manager shall render to the Retirement System
a final accounting of its transactions. The termination of this Agreement shall not affect or
preclude the consummation of any transactions, which were initiated by the Investment Manager
prior to the effective date of such termination.
Section 6
PROXY VOTING AND ELECTIONS
The Investment Manager shall be responsible for voting all proxies which are solicited in
1 connection with the assets and the Investment Manager shall be responsible for making all
elections in connection with any mergers, acquisitions, tender offers, bankruptcy proceedings or
similar occurrences which may affect the Assets, and in connection with Rule 1413-1(c) under the
Securities Exchange Act of 1934 subject to the following conditions and terms:
a. The Trustees may revoke the Investment Manager's voting authorization with
respect to any asset by giving written notice to the Investment Manager. Upon the revocation of
the voting authorization for any asset, the Investment Manager will immediately forward proxy
materials received to the Trustees or their designee.
b. The Investment Manager will vote all proxies and make all elections in
accordance with the Retirement System's Proxy Voting Guidelines, if such guidelines are
adopted and attached hereto as Exhibit "B ". Any revisions to said guidelines shall be submitted
to the Investment Manager by the Retirement System.
C. The Investment Manager will keep records of all proxies voted, the asset's
management's recommendations for voting such proxies, and such records as may from time to
time be required under applicable laws and regulations in connection with the voting thereof.
The Investment Manager will quarterly report to the Trustees (i) the action taken on every non-
routine or contested issues and the election of directors, and (ii) a written explanation for any
particular proxy vote which is arguably counter to the Guidelines and, when available, the overall
outcome of such votes.
The Trustees instruct the Custodian of the Retirement System to forward promptly to the
Investment Manager all communications received by the Custodian in connection with the
Retirement System, including proxy statements and proxy ballots duly executed by the Custodian
as the record owner of the Retirement System's assets.
Section 7
FIDUCIARY AND OTHER RESPONSIBILITIES
The Investment Manager shall carry out its duties with the care, skill, prudence and
diligence under the circumstances then prevailing that a prudent man acting in a like capacity and
familiar with such matters would use in the conduct of an enterprise of like character and with
like aims. The Investment Manager shall discharge its duties hereunder solely in the interest of
the Retirement System's participants and beneficiaries for the exclusive purpose of providing
benefits to participants and their beneficiaries and defraying reasonable expenses of administering
the Retirement System's retirement plan. The Investment Manager shall diversify the assets in the
account so as to minimize the risk of large losses. The Investment Manager, by execution of this
Agreement, acknowledges that it is a fiduciary with respect to the Retirement System and a
named fiduciary within the meaning of Section 112.656(2), Florida Statutes.
Section 9
SERVICE TO OTHER CLIENTS
It is understood that the Investment Manager performs investment advisory services for
various clients. The Retirement System agrees that the Investment Manager may give advice and
take action with respect to any of its other clients which may differ from advice given or the
timing or nature of action taken with respect to the Retirement System, so long as it is the
Investment Manager's policy, to the extent practical, to allocate investment opportunities to the
Retirement System over a period of time on a fair and equitable basis relative to other clients. It
is understood that the Investment Manager shall not have any obligation to purchase or sell, or to
recommend for purchase or sale, on behalf of the Retirement System, any security which the
Investment Manager, its principals, affiliates or employees may purchase or sell for its or their
own accounts or for the account of any other client, if in the opinion of the Investment Manager
such transaction or investment appears unsuitable, impractical or undesirable for the Retirement
System.
Section 9
INVESTMENT OBJECTIVES AND RESTRICTIONS
The Investment Manager acknowledges receipt of the Retirement System's Statement of
Investment Policy & Objectives. Attached hereto and made a part hereof as Exhibit "C ". The
to*, Retirement System shall furnish the Investment Manager with any changes or amendments
thereto.
Section 10
REGISTRATION
Investment Manager represents that it is registered as an investment advisor under the
Investment Advisors Act of 1940, that such registration is currently effective and that such
registration shall remain in effect at all times during the term of this agreement.
The Retirement System acknowledges receipt of Investment Manager's Disclosure
Statement, as required by Rule 204-3 under the Investment Advisors Act of 1940, not less than
48 hours prior to the date of execution of this agreement.
Section 11
ASSIGNMENT
This Agreement may not be assigned by either party except with the prior written consent
of the other party.
Section 12
INSURANCE
The Investment Manager agrees to obtain and maintain, at all times during which this
Investment Management Agreement is in effect, fiduciary liability or errors and omissions
insurance and employee dishonesty insurance in the sum of at least $5,000,000 and to provide
the Retirement System annually with a certificate of insurance attesting that said insurance are in
full force and effect.
Section 13
CONSTRUCTION, VENUE AND REGISTRATION
This Agreement is made in Palm Beach Gardens, Florida, and shall be governed by the
laws of the State of Florida. The venue for any legal action involving this Agreement shall be in
Palm Beach County, Florida.
W
Section 14
NOTICE
All notices or deliveries required or desired hereunder shall be delivered or mailed:
To: Dana Investment Advisors, Inc., at:
c!o Mark Mirsberger, COO
15800 W. Bluemound Road, Suite 250
Brookfield, WI 53005 -6003
To: Retirement System, at:
Board of Trustees
City of Palm Beach Gardens Firefighters' Retirement System
c/o Margaret ;*It `t,Plan Administrator
4360 Northlake Blvd., Suite 206
Palm Beach Gardens, Florida 33410
Section 15
COMMUNICATION AND REPORTS
The Investment Manager will maintain communications with the Retirement System's
tP'" trustees as required by the Retirement System. This is to include but is not limited to the
following:
1. Written monthly synopsis of the state of investments made by the Investment
Manager to include any changing trends or philosophies.
2. Personally presented semi - annual reports to be given when scheduled in
accordance with the Retirement System's procedures. Any written documentation which will be
a part of said report will be submitted to the Retirement System office and to each trustee
individually no later than seven (7) days prior to the presentation of this report and no sooner
than fifteen (15) business days following quarter's end.
IN WITNESS WHEREOF, the Retirement System and the Investment Manager have
caused this Agreement to be executed by their duly authorized officers and their corporate seals
to be hereunto affixed as of the date first above written.
ATTEST:
Witness
ATTEST: Investment Manager:
Witness
G:%\PBGFdNV\ADANAUNVMAGTD-
City of Palm Beach Gardens Firefighters'
Retiremystem L�-)
By: / ,� <<, � dA-
adman, Board of Trustees
Dana Investment Advisors, Inc.
By.
Title:
W
rdd
EXHIBIT A
FEES
For services under this Agreement, the Investment Manager shall be entitled to receive
from the Retirement System a fee at the annual rate as set forth below. Said fees shall not be
increased during the initial term of this Agreement without the written consent of both parties.
Such fee shall be computed on the total assets covered by this Agreement. Total assets s an
mean the sum of the values taken at market of all the Investment Assets under management by
the Investment Manager (i.e., the last quoted sales price on the principal exchange on which such
assets are traded).
Equity investments
First three million dollars Seventy-five basis points (.0075)
Over three million dollars Sixth basis points (.0060)
Fixed income/cash investments
First three million dollars Fifty basis points (.0050)
Over three million dollars Forty basis points (.0040)
City of Palm Beach Gardens
ep", Firefighters' Pension Trust Fund
Investment Policy Statement
I. PURPOSE OF INVESTMENT POLICY STATEMENT
The Pension Board of Trustees, as named fiduciaries, maintains that an important determinant of future
investment returns is the expression and periodic review of the Fund's investment objectives. To that
end, the Trustees have adopted this statement of Investment Policy and direct that it apply to all assets
under their control.
In fulfilling their fiduciary responsibility, the Trustees recognize that the Pension Plan is an essential
vehicle for providing income benefits to retired participants or their beneficiaries. The Board also
recognizes that the obligations of the Fund are long -term and that investment policy should be made
with a view toward performance and return over a number of years. The general investment objective,
then, is to obtain a reasonable total rate of return - defined as interest and dividend income plus
realized and unrealized capital gains or losses - commensurate with the Prudent Investor Rule and any
other applicable statute.
Reasonable consistency of return and protection of assets against the inroads of inflation are
paramount. However, the volatility of interest rates and securities markets make it necessary to judge
results within the context of several years rather than over short periods of two years or less.
The Pension Board of Trustees will employ professional Investment Management firms to invest the
assets of the fund. Within the parameters allowed in this IPS, the Investment Managers have full
discretion, including security selection, sector weightings and investment style.
The Trustees, in performing their investment duties, shall comply with the fiduciary standards set forth
in Employee Retirement Income Security Act of 1974 (ERISA) at 29 U.S.C. s. 1104(a) (1) (A) — (C).
In case of conflict with other provisions of law authorizing investments, the investment and fiduciary
standards set forth in this section shall prevail.
II. TARGET ALLOCATIONS
In order to provide for a diversified portfolio, the Board has engaged Investment Management firms
with target investment allocations as provided for on Schedule `A', attached hereto. The managers are
solely responsible for the assets and allocation of their mandate only and shall abide by any
subordinate investment policy assigned to the manager attached hereto.
On a regular basis (at least quarterly) the Investment Consultant will review the investment portfolio
for the purpose of rebalancing assets within the target investment allocations prescribed on Schedule
`A' and shall coordinate the overall asset allocation and affect rebalancing of the portfolio when
necessary. The consultant shall also periodically review the investment portfolio and report to the
Board the style and capitalization of the individual and total portfolios.
III. INVESTMENT PERFORMANCE OBJECTIVES
The following performance measures will be used as objective criteria for evaluating effectiveness of
the investment managers.
A. Total Fund Performance
1. The performance of the total Fund will be measured for rolling three and five year periods.
These periods are considered sufficient to accommodate the market cycles experienced with
investments. The performance of this portfolio will be compared to the return of a portfolio
comprised of 55% Russell 3000, 10% MSCI SAFE, 25% Lehman Brothers Intermediate
Aggregate Bond Index, and 10% NCREIF Index.
2. On a relative basis, it is expected that the total fund performance will be in the top 40% of the
appropriate peer universe over trailing three to five year periods.
3. On an absolute basis, it is expected that total return of the combined equity, fixed income, and
cash portfolio, should equal or exceed the higher of the actuarial earnings assumption (8.25 %)
or the Consumer Price Index plus 3% over three to five year periods.
B. Equity Performance
The combined equity portion of the portfolio, defined as common stocks and convertible bonds,
is expected to perform at a rate at least equal to a weighted benchmark of 85% Russell 3000
and 15% MSCI EAFE Index. Individual components of the equity portfolio will be compared
as outlined in Schedule W. All portfolios are expected to perform in the top 40% of an
appropriate peer universe over trailing three to five year periods.
e0 k C. Fixed Income Performance
W
The overall objective of the fixed income portion of the portfolio is to add stability, consistency
and safety to the total fund. The fixed income portion of the portfolio, defined as fixed income
and preferred stocks, is expected to perform at a rate at least equal to the Lehman Brothers
Intermediate Aggregate Bond Index, and rank in the top 40% of the appropriate peer universe
over trailing three to five year periods.
D. Alternatives (Real Estate/Timber)
The overall objective of the alternative portion of the portfolio is to provide an attractive level
of income with minimal volatility to the fund. This portion of the fund is expected to provide
an absolute rate of return as benchmarked in Schedule 'A' attached hereto.
2
IV. INVESTMENT GUIDELINES
eP" A. Authorized Investments
All monies paid into or held in the fund shall be invested and reinvested by the board and the
investment of all or any part of such funds shall be limited to:
1. Time or savings accounts of a national bank, a state bank insured by the Bank Insurance Fund,
or a savings and loan association insured by the Savings Association Insurance Fund which is
administered by the Federal Deposit Insurance Corporation or a state or federal chartered credit
union whose share accounts are insured by the National Credit Union Share Insurance Fund.
2. Bonds issued by the State of Israel.
3. Obligations issued by the United States Government or obligations guaranteed as to principal
and interest by the United States Government or by an agency of the United States
Government.
4. Stocks, commingled funds administered by national or state banks, mutual funds and bonds or
other evidences of indebtedness, issued or guaranteed by a corporation organized under the
laws of the United States, any state or organized territory of the United States or the District of
Columbia, provided that:
a. The securities when purchased meet the following ranking criteria:
i. Fixed Income Securities must be Investment Grade as measured by Standard & Poor's
or Moody's.
ii. Equities: Traded on a recognized national exchange.
iii. Money Market: Standard & Pooes Al or Moody's P1.
b. Not more than 3% of the Fund's assets shall be invested in the common stock or capital stock
of any one issuing company, nor shall the aggregate investment in any one issuing company
exceed 3% of the outstanding capital stock of the company.
c. The value of bonds issued by any single corporation shall not exceed 3% of the total fund.
5. Real Estate commingled, funds, commingled private placements and direct investments must be
independently appraised at least annually.
6. Foreign Securities.
B. Limn itattations
1. Investments in corporate common stock and convertible bonds shall not exceed 65% of the
Fund assets at cost or 75% of the fund assets at market value.
2. Foreign securities shall not exceed 10% of the value at cost of the fund, and may only be
purchased by the dedicated international manager.
3. Real estate investments shall not exceed 10% of the value at cost of the fund.
4. No investment may be made unless provided for as part of this policy
C. Trading Parameters
When feasible and appropriate, all securities shall be competitively bid. Except as otherwise
required by law, the most economically advantageous bid shall be selected. Commissions paid
for purchase of securities must meet the prevailing best- execution rates. Each manger shall
report quarterly their commission schedule and provide a statement affirming their compliance
to 'best execution' practices.
K
rk COMMUNICATIONS
A. On a monthly basis, the custodian shall supply an accounting statement that will include a
summary of all receipts and disbursements and the cost and the market value of all assets. On a
quarterly basis, the managers shall provide a written report affirming compliance with the
security restrictions of Section IV above and a summary of common stock diversification and
attendant schedules. In addition, the manager shall deliver each quarter a report detailing the
Fund's performance, adherence to the investment policy, forecast of the market and economy,
portfolio analysis and durrent assets of the Trust. Written reports shall be delivered to the
Trustees within 60 days of the end of the quarter. A copy of the written report shall be
submitted to the person designated by the City, who shall make them available for public
inspection. The Investment Managers will provide immediate written and telephone notice to
the Trustees of any significant market related or non - market related event, specifically
including, but not limited to, any deviation from the standards set forth in Section IV above.
B. The Investment Managers will disclose any securities that do not comply with Section IV in
each quarterly report.
C. If the Fund owns investments, that complied with section IV at the time of purchase, which
subsequently exceed the applicable limit or do not satisfy the applicable investment standard,
such excess shall result in rebalancing within 30 days; noncompliant investments shall be
disposed of at the earliest economically feasible opportunity in accordance with the prudent
man standard of care, but shall not exceed two (2) fiscal quarters and no additional investment
may be made. Assets for which a fair market value is not provided shall be excluded from the
assets used in the determination of annual funding cost. For each actuarial valuation, the board
must verify the determination of the fair market value for those investments and ascertain that
the determination complies with all applicable state and federal requirements. The board shall
disclose to the Department of Management Services and the Plan's sponsor each such
investment for which the fair market value is not provided.
D. The Trustees shall retain a monitoring service to evaluate and report on a quarterly basis the
rate of return and relative performance of the Fund. The Trustees will meet quarterly to review
the monitoring service's Performance Report. The Trustees will meet with the investment
managers and appropriate outside consultants to discuss performance results, economic
outlook, investment strategy and tactics and othgr pertinent matters affecting the Fund on a
periodic basis.
E. At least annually, the Trustees shall provide the Investment Managers with projected
disbursement needs of the plan, so that the investment portfolio can be structured in such
manner as to provide sufficient liquidity to pay obligations as they come due. To this end, the
Investment Managers should, to the extent possible, attempt to match investment maturities and
purchase / sale schedules with known cash needs and anticipated cash -flow requirements.
VI. COMPLIANCE
A. It is the direction of the Trustees that the plan assets are held by a third party custodian, and that
all securities purchased by, and all collateral obtained by the plan shall be properly designated
as plan assets. No withdrawal of assets, in whole or in part, shall be made from safekeeping
cxcept by an authorized member of the board of Trustees or their designee. Securities
ew transactions between a broker - dealer and the custodian involving purchase or sale of securities
by transfer of money or securities must be made on a "delivery vs. payment" basis to insure that
the custodian will have the security or money in hand at conclusion of the transaction. All
4
approved vendors transacting repurchase agreements must perform as stated in any Master
Repurchase Agreement
B. At the direction of the Trustees, operations of the fund shall be reviewed by independent
certified public accountants, as part of any financial audit periodically required. Compliance
with the Trustees' internal controls shall be verified. These controls have been designed to
prevent losses of funds that might arise from fraud, error, or misrepresentation by third parties
or imprudent actions by the Board or employees of the plan sponsor, to the extent possible.
C. Each member of the Board of Trustees shall participate in a continuing education program
relating to investments and the Trustee's responsibilities to the fund. It is highly suggested that
this education process begin during the Trustees' first term.
D. With each actuarial valuation, the Board of Trustees shall determine the total expected annual
rate of return for the current year, for each of the next several years and for the long term
thereafter. This determination shall be filed promptly with the Department of Management
Services, the plan's sponsor and the consulting actuary.
E Proxy votes must be exercised for the exclusive benefit of the participants of the Fund. Each
manager shall provide the Board with a copy of their proxy voting policy for approval. On a
regular basis, at least annually, each manager shall report a record of their proxy vote.
VII. CRITERIA FOR INVESTMENT MANAGER REVIEW
The Board wishes to adopt standards by which judgments of the ongoing performance of a portfolio
manager may be made. Upon violation of any of the following, the portfolio manager will be warned
of the Board's serious concern for the Fund's continued safety and performance. Violation of three
individual guidelines shall result in a probation recommendation. Violation of five individual
guidelines shall results in a termination recommendation:
♦ 4 consecutive quarters of relative under - performance verses benchmark index.
♦ 3 and 5 year trailing returns below the 40th percentile and underperforming the index.
♦ Downside volatility greater than index, measured by up /down market capture ratio.
4 Style Consistency or purity drift from the mandate.
♦ Management turnover in portfolio team or senior management.
♦ Investment process change, including varying the index or benchmark.
♦ Failure to adhere to the IPS or other compliance issues.
♦ Investigation of the firm by the SEC.
♦ Significant asset flows into or out of the company.
♦ Merger or sale of firm.
♦ Fee increases.
♦ Servicing issues — Key personal stop servicing the account without proper notification.
Nothing in this section shall limit or diminish the Trustees' right to terminate the manager at any time
for any reason.
VIII. CRITERIA FOR INVESTMENT TOTAL FUND REVIEW
A. Four consecutive quarters of Total Fund performance below the 50th percentile in Fund
performance rankings.
B. Four consecutive quarters of Total Fund performance below the established benchmark
C. Standard deviation for the Total Fund in excess of 1500/6 of the assigned benchmark.
5
IX. FLORIDA STATUTES 112,175 AND APPLICABLE CITY ORDINANCES
If, at any time, this document is found to be in conflict with Chapters 112 or 175 of the Florida
Statutes, or the applicable City Ordinances, the Statutes and Ordinances shall prevail.
X. REVIEW AND AMENDMENTS
It is the Trustees intention to review this document at least annually subsequent to the actuarial report
and to amend this statement to reflect any changes in philosophy, objectives, or guidelines. Any
investment not specifically allowed as part of this policy is prohibited. Each Investment Manager will
receive and agree to this investment policy, and will execute an addendum to this policy outlining their
specific mandate. If, at any time, the Investment Manager feels that the specific objectives defined
herein cannot be met, or the guidelines constrict performance, the Trustees should be notified in
writing. By initial and continuing acceptance of this Investment Policy Statement, the Investment
Managers concur with the provisions of this document.
CITY OFR.ALM BEACH GARDENS FIREFIGHTERS' PENSION PLAN
By: ' Date:_�L���� J
Chairman, Boa .rustees
W
W
6
I I
Schedule `A'
City of Palm Beach Gardens
Firefighters' Pension Trust Fund Investment Policy Statement
TARGET
RANGE
Broad Value Equity
Broad Growth Equity
27.5%
27.5%
0.0%-60.0%
Russell 3000 Value
International Equity
10.0%
0.0%-60.0%
Russell 1000 Growth
Investment Grade Bonds
Income
25.0%
5.0%-15.0%
20.0%
- 30.0%
MSCI EAFE
LB Intermediate Aggregate
Opportunity
10.0%
5.0%-15.0%
NCREIF
W
Investments in corporate common stock and convertible bonds shall not exceed 65% of the Fund assets at cost or 75% of the fund assets
at market value. Investments in foreign equity shall be limited to 10% of the fund assets at cost.
CITY OF PALM BEACH GARDENS FIREFIGHTERS' PENSION PLAN
By.
Chairman, Board o rustees
The undersigned investment manager hereby acknowledges receipt of, and agrees to comply with this Investment Policy Statement
Firm Authorized Represen ive By.
7
elk CITY OF PALM BEACH GARDENS FIREFIGHTERS'
RETIREMENT SYSTEM
Addendum to Statement of Investment Policy
For
Dana — Core Value Equity Portfolio
Dana has been retained. by the City of Palm Beach Gardens Firefighters' Retirement
System to manage a portfolio of core value equity stocks. Dana was retained for this
assignment based on their qualifications and experience in managing equity portfolios of
this type.
Addendum
This addendum is a part of the City of Palm Beach Gardens Firefighters'
Investment Policy and is intended only to complement the objectives and guidelines
outlined therein. By signing this addendum the investment manager understands
and agrees to adhere to the guidelines, investment manager responsibilities, and
other conditions therein.
Guidelines
Within the guidelines contained in the Statement of Investment Policy established for the
City of Palm Beach Gardens Firefighters, Dana may invest and reinvest the assets of the
Plan in a diversified portfolio of:
• Equities (stocks)
• Cash equivalent securities
In order to comply with the guidelines for the entire City of Palm Beach Gardens
Firefighters' Retirement System as outlined in the Statement of Investment Policy, the
Dana investment portfolio shall comply with the following criteria:
1. Cash securities shall not exceed 10% of the market value of the total portfolio.
2. Not more than 7.5% of the portfolio assets shall be invested in the
common stock or capital stock of any one issuing company, nor shall the
aggregate investment in any one issuing company exceed 7.5% of the outstanding
capital stock of the company.
3. No international securities or ADRs.
r
Investment Objectives
Dana has been retained as a core value equity portfolio manager. The assets of the Plan
managed by Dana shall be invested with the following objectives:
Total Portfolio:
The primary objective of the Dana portfolio shall be to achieve a return over the longer
term (3 to 5 years) in excess of a Target Index. The Target Index for the Dana Portfolio
is defined as the S &P 500 Stock Index.
The secondary objective of the Dana portfolio shall be to achieve a rate of return over the
longer term (3 to 5 years) which ranks above average (top 40 %) when compared to a
representative universe of other, similarly managed portfolios.
The volatility of the Fund's total returns is expected to be similar to that of the target
index and will be evaluated accordingly.
Policy Review
It is the intention of the Board of Trustees of the City of Palm Beach Gardens Firefighters
Retirement System to review the Statement of Investment Policy and this Addendum
from time to time and to amend them if necessary to reflect any changes in philosophy or
objectives. However, if at any time the investment manager believes that the specific
objectives defined herein cannot be met, or that the guidelines unnecessarily constrict
performance, the Trustees shall be so notified in writing.
Chairman, Bo of Trustees
City of Palm Beach Gardens Firefighters' Retirement System
Date
�b�_
ana Date
W
r11 CITY OF PALM BEACH GARDENS FIREFIGHTERS'
RETIREMENT SYSTEM
Addendum to Statement of Investment Policy
For
Dana — Growth Equity Portfolio
Dana has been retained by the City of Palm Beach Gardens Firefighters' Retirement
System to manage a portfolio of growth equity stocks. Dana was retained for this
assignment based on their qualifications and experience in managing equity portfolios of
this type.
Addendum
This addendum is a part of the City of Palm Beach Gardens Firefighters'
Investment Policy and is intended only to complement the objectives and guidelines
outlined therein. By signing this addendum the investment manager understands
and agrees to adhere to the guidelines, investment manager responsibilities, and
other conditions therein.
Guidelines
Within the guidelines contained in the Statement of Investment Policy established for the
City of Palm Beach Gardens Firefighters, Dana may invest and reinvest the assets of the
Plan in a diversified portfolio of:
• Equities (stocks)
• Cash equivalent securities
In order to comply with the guidelines for the entire City of Palm Beach Gardens
Firefighters' Retirement System as outlined in the Statement of Investment Policy, the
Dana investment portfolio shall comply with the following criteria:
1. Cash securities shall not exceed 10% of the market value of the total portfolio.
2. Not more than 7.5% of the portfolio assets shall be invested in the
common stock or capital stock of any one issuing company, nor shall the
aggregate investment in any one issuing company exceed 7.5% of the outstanding
capital stock of the company.
3. No international securities or ADRs.
Investment Objectives
Dana has been retained as a growth equity portfolio manager. The assets of the Plan
managed by Dana shall be invested with the following objectives:
Total Portfolio:
The primary objective of the Dana portfolio shall be to achieve a return over the longer
term (3 to 5 years) in excess of a Target Index. The Target Index for the Dana Portfolio
is defined as the Russell 1000 Growth Index.
The secondary objective of the Dana portfolio shall be to achieve a rate of return over the
longer term (3 to 5 years) which ranks above average (top 40 %) when compared to a
representative universe of other, similarly managed portfolios.
The volatility of the Fund's total returns is expected to be similar to that of the target
index and will be evaluated accordingly.
Policy Review
It is the intention of the Board of Trustees of the City of Palm Beach Gardens Firefighters
Retirement System to review the Statement of Investment Policy and this Addendum
from time to time and to amend them if necessary to reflect any changes in philosophy or
objectives. However, if at any time the investment manager believes that the specific
objectives defined herein cannot be met, or that the guidelines unnecessarily constrict
performance, the Trustees shall be so notified in writing.
Chairman, Bo of Trustees
City of Palm Beach Gardens Firefighters' Retirement System
Date
Dana Date
r
I I I
Schedule `A'
City of Palm Beach Gardens
Firefighters' Pension Trust Fund Investment Policy Statement
Broad Value Equity
Broad Growth Equity
International Equity
Investment Grade Bonds
Income Opportunity
TARGET
RANGE
27.5%
0.0%-60.0%
27.5%
0.0%-60.0%
10.0%
5.0%-15.0%
25.0%
20.0%
- 30.0%
10.0%
5.0%-15.0%
Russell 3000 Value
Russell 1000 Growth
MSCI SAFE
LB Intermediate Aggregate
NCREIF
Investments in corporate common stock and convertible bonds shall not exceed 65% of the Fund assets at cost or 75% of the fund assets
at market value. Investments in foreign equity shall be limited to 10% of the fund assets at cost.
CITY OF PALM BEACH GARDENS FIREFIGHTERS, PENSION PLAN
I-
By: ` c
r . ---
Chairman, Bb- rd of Trustees
The undersigned investment manager her by acknowledges receipt of, and agrees to comply with this Investment Policy Statement
v
Firm ��-
Authorized Representative By:
Subject to the limitations described below, this Addendum to Investment Policy Statement is hereby acknowledged by Voyageur Asset Management Inc.
Voyageur Asset Management, Inc. (the "Manager"), in its capacity as Advisor for the Voyageur Asset Management Inc. Group Trust, Voyageur International Fund,
as aubadvised by Polaris Capital Management, has been delegated as an investment manager for a portion of the assets of City of Palm Beach Gardens Fue$ghtem' 7
Pension Trust Fund ( the " Fund "). The Manager has been directed by the Trustees to utilize the Voyageur International Fund (the 'Trust') as the investment
instrument. It is acknowledged that the Investment Policy Statement of the Fund differs from the exact investment objectives, policies and restrictions of the Trust.
The City of Palm Beach Gardens Firefighters'
e0*' Defined Benefit Retirement System
Addendum to Statement of Investment Policy
For
Voyageur Asset Management
Voyageur Asset Management has been retained by the City of Palm Beach Gardens Firefighters'
Retirement System to manage a portfolio of international stocks. Voyageur Asset Management
was retained for this assignment based on their qualifications and experience in managing
portfolios of this type.
Addendum
This addendum is a part of the City of Palm Beach Gardens Firefighters' Investment Policy
and is intended only to compliment the objectives and guidelines outlined therein. By
signing this addendum the Investment manager understands and agrees to adhere to the
guidelines, investment manager responsibilities, and other conditions therein.
Guidelines
C Within the guidelines contained in the Statement of investment Policy established for the City of
Palm Beach Gardens Firefighters' Retirement System, Voyageur Asset Management may invest
and reinvest the assets of the Plan in a diversified portfolio of:
• Equities (stocks)
• ADRs
• Cash equivalent securities
In order to comply with the guidelines for the entire City of Palm Beach Gardens Firefighters'
Retirement System as outlined in the Statement of Investment Policy, the Voyageur Asset
Management investment portfolio shall comply with the following criteria;
I . Be traded on a foreign exchange, which is recognized as the official exchange by the
government where the foreign exchange is located, or on any of the major equivalent
electronic exchanges.
2. Be invested primarily in countries considered developed as defined by the standards
defined by a major index provider such as but not limited to the MSCi -SAFE Index.
3. No more than 7% of the market value of the international portfolio shall be invested in
any single issuer.
4. Country allocations shall include representation in a minimum of 15 countries.
5. Investment in countries not considered developed by a major index provider (such as
MSCI EAFE Index), (excepting Canada) shall normally be limited to 30% of the market
value of the manager's portfolio. In cases where the manager believes that limit needs to
be exceeded, notice of such shall be given to Palm Beach Gardens Firefighters'
Retirement System within 30 days of the time such limit is exceeded.
5. Foreign equity managers may hold incidental cash in foreign currencies and funds that do
not meet the requirement of S &P A 1 or Moody's P 1.
Investment Objectives
Voyageur Asset Management has been retained as an international portfolio manager. The assets
of the Plan managed by Voyageur Asset Management shall be invested with the following
objectives:
.�_. 1 •.�
The primary objective of the Voyageur Asset Management portfolio shall be to achieve a return
over the longer term (3 to 5 years) in excess of a Target Index. The Target Index for the
Voyageur Asset Management Portfolio is defined as the MSCI Europe Asia and Far East Index.
The secondary objective of the Voyageur Asset Management portfolio shall be to achieve a rate
of return over the longer term (3 to 5 years) which ranks above average (top 40'/0) when
compared to a representative universe of other, similarly managed portfolios.
The beta of the Fund's holdings is expected to be similar to that of the target index and will be
evaluated accordingly.
Policy Review
rl It is the intention of the Board of Trustees of the City of Palm Beach Gardens Firefighters'
Retirement System to review the Statement of Investment Policy and this Addendum from time to
time and to amend them' if necessary to reflect any changes in philosophy or objectives.
However, if at any time the investment manager believes that the specific objectives defined
herein cannot be met, or that the guidelines unnecessarily constrict performance, the Trustees
shall be so notified in writing.
Chairman Bokr4of Trustees
City of Palm $each Gardens Firefighters' Retirement System
Dale �
0•� •U�
y geur Asset Management Date
Subject to the limitations described below, this Addendum to the Investment Policy Statement is
hereby acknowledged by Voyageur Asset Management Inc.
Voyageur Asset Management, Inc. (the "Manager"), in its capacity as Advisor for the Voyageur Asset
Management Inc. Group Trust, Voyageur International Fund, as subadvised by Polaris Capital
Management, has been delegated as an investment manager for a portion of the assets of City of Palm
Beach Gardens Firefighters' Pension Trust Fund (the "Fund "). The Manager has been directed by the
Trustees to utilize the Voyageur International Fund (the "Trust ") as the investment instrument. It is
acknowledged that the Investment Policy Statement of the Fund differs from the exact investment
objectives, policies and restrictions of the Trust.