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HomeMy WebLinkAboutMinutes Fire Pension 02200203/08/2002 12:38 5616243278 RESOURCE CENTERS PAGE 03 PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND MINUTES OF MEETING HELD February 20, 2002 A meeting of the Board of Trustees was called to order at 8;45 A.M. at the Main . station, Palm Beach Gardens, Florida. Those persons present were: TRUSTEES OTHERS Ed Morejon Margie Adcock, Pension Resource Center, Richard Beladino Administrative Manager Phillip Buttaravoli Scott Givens, Bank of America., Investment Ma .alter Joe Bodgahn, Bogdahn Consulting, Investment ✓Ionitor Bob Sugarman, Sugarman & Susskind, Fund At orney MINUTES The minutes for the meeting of November 19, 2001 were reviewed. A motion was made, seconded, and passed 3 -0 to accept the minutes of November 19, 2001 _ INVESTMENT MANAGER Scott Givens appeared before the Board to discuss the investment performance of th ; Fund for the quarter ending December 31, 2001. Mr. Givens gave a brief overview of the i mrket. He stated that there are signs of a turn in a positive direction. There is growth in the equity markets, but not overly strong. He noted that there have been two down years in the narket in a row, which has not happened since 1973 and 1974. The market value of the tot. t Fund as of December 31, 2001 was $5,517,479. The Fund was up 5.88% for the quarter. Mr. Givens then discussed the change from Chicago Equity Partners to managing int ;rnally within Bank of America.. He noted that they have sold the international portion of the portfolio. He advised that it was underperforming its peer group so it was sold in J tnuary 2002. They will look to replace it at some point, but they are focusing on domesi c area right now. Mr. Givens then discussed more on the performance of the Fund. He noted that th ; asset allocation as of December 31, 2001 was 60,80% in equities, 37.24% in fixed incol le and 1.96% in cash, He advised the Board that the Fund had no position in Enron. INVESTMENT MQNITOR Joe Bogdahn appeared before the Board to discuss the investment performance for th : Fund for the quarter ending December 31, 2001. He advised that for the trailing one yE ir, the Fund was down 7.50% versus the benchmark, which was down 4.91 %. Since incep, ion on April 30, 1998, the Fund is up 3.28% versus the benchmark, which was up 4,10 %. With respect to the asset allocation at cost, the Fund was comprised of 65% equities, 330/ fixed income and 2% cash_ For the fourth quarter, the Fund was up 5.84% while the benc hmark was up 6.97 %, 03/08/2002 12:38 5616243278 RESOURCE CENTERS PAGE 04 The total market value for the fixed income portion for the portfolio as of Decem )er 31, 2001 was $ 2,081,000. For the trailing one year, the fixed income portion of the p )rtfolio was up 7.07% versus the benchmark, which was up 8.51 %. For the fourth quarter, ti a fixed income portion was down .03% while the benchmark was up .06 %. The total marks t value for the equity portion of the portfolio as of December 31, 2001 was $ 3,355,000. 'or the trailing one -year, equities were down 14.98% versus the benchmark, which wa; down 11.88°/x. For the fourth quarter, equities were up 10.16% versus the benchmark, whi :h was up 10.69 %. Mr. Bogdahn advised that Bank of America has addressed their relationship with C hicago Equity Partners when it determined that it was not where it would have liked it to t Mr. Bogdahn advised the Board that he thinks it is prudent to place Bank of Ame. ica on probation because of the manager change and their performance. He did not t iat the investment vehicle that Bank of America is putting the Fund in has a long -term track record to meet the criteria of the Fund and noted that he will provide a more detailed review for the next quarter. Mr. Bogdahn then reviewed with the Board three other managers and discusse l their performance over various time periods. There was a lengthy discussion regarding 1 'hat, if any, action the Board should take. Mr. Bogdahn recommended that at a minimum the Board should place Bank of America on probation and obtain information on where the pi irtfolio will be going forward. Mr. Bogdahn advised that he could do a formal manager sea -ch for the Board to review. He then discussed the process of the manager search. A moti ,n was made, seconded and passed 3 -0 to put Bank of America on probation until further no ice. A motion was made, seconded and passed 3 -0 to direct Joe Bogdahn to do an inv( stment manager search and present his findings to the Board at a special meeting set for Ma -ch 14, 2002 at 8,30 a.m. r There was a discussion regarding education for the Trustees. Bob Sugarman advisec that it would be permissible for the Fund to pay for Trustees to receive a subscriptiol for a pension - related magazine or newspaper. It was decided that each Trustee should re :eive a different magazine or newspaper. 'A motion was made, seconded and passed 3 -0 tc allow Board members to get a subscription for a pension - related magazine or newspaper. Margie Adcock then noted that Bank of America provides custodial services in add ;ion to investment. management. If the Board were to change investment managers, then a new custodian would be needed. The Board asked Ms. Adcock to obtain information froi ► other custodians in the event the Board changes investment managers and needs a custod an. A motion was made, seconded and passed 3 -0 to allow the Administrator and Monitor; elect a custodian for the Board in the event a new manager is retained that does not offer cL stodial services. There was then a question regarding the necessity of having an independent audit 'or the Fund. Mr. Sugarman discussed with the Board the possibility of having an index indent audit. A motion was made, seconded and passed 3 -0 to have the Administrator obtain information on having an independent audit done by the City's auditor, the police Luditor and other possible auditors for public pension plans. A motion was made, second :d and passed 3 -0 to appoint a subcommittee comprised of Richard Beladino and Ed Mor jon to select an independent auditor if they determined that would be the best avenue. 03/08/2002 12:38 5616243278 RESOURCE CENTERS PAGE 05 RNEY REPORT Bob Sugarman reviewed the revised Trustee Election Procedures. A motion wa: made, seconded and passed 3 -0 to adopt the Trustee Election Procedures. Mr. Sugarman advised the Board that he sent a proposed Ordinance to the City that would allow for the transfer of 457 money into the Plan to purchase time. He noted that he lad not received a response from the City as of yet. It was then determined that revisiol s were necessary to the proposed Ordinance. Mr. Sugarman will revise the proposed Or, finance and forward it to the City. Mr, Sugarman then discussed a proposed records retention policy. He explained to the Board about the public records law and noted that the Board should have a City offic al sign a statement that the Fund's records are confidential. It was determined that Mr. Su ,arman would prepare the necessary letter for the Chairman to present to the City for signatu: e. Mr. Sugarman then advised that the Board should appoint a records management liai: )n. A motion was made, seconded and passed 3 -0 to adopt the records retention polic) and a resolution that the Administrator would be the records management liaison. Mr. Sugarman advised the Board that the IRS Notice regarding rollovers has been cl anged. Mr. Sugarman provided the Administrator with the new IRS Notice. Margie Adcock presented the disbursements to be made. A motion was made, seconc ed and passed 3 -0 to approve the disbursements. DISABILITY REVIEWS Margie Adcock reported that she brought the files on the two disability recipients th ; Fund currently has as directed at the last meeting. The Board reviewed the files of Kevin N itchell and Richard Hodgkins. Mr. Sugarman reviewed the various options that were avail ible to the Board. There was a lengthy discussion regarding the current job descriptioi for a firefighter for the City. It was noted that there has been discussions'to change 1,-le job description to more accurately reflect the firefighter requirements. The Board dec: led to table the review of the two disability recipients pending the feasibility of having 1 he job description changed. OTHER BUSINESS There being no further business, a motion was made, seconded and passed 3 -0 to adjo im the meeting. The meeting adjourned at 11:55 A.M. Respectfully submitted, Ed Morejon, Secretary