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HomeMy WebLinkAboutMinutes GEPB 021207General Employees Pension Fund February 12, 2007 The General Employees Pension Board met on February 12, 2007 in the City of Palm Beach Gardens, Council Chambers located at 10500 N. Military Trail, Palm Beach Gardens, Florida. The meeting was called to order by Chair, Stephen Parella at 2:08 p.m. and opened with the Pledge of Allegiance. 1. ROLL CALL Members Present: Members Absent Stephen Parella Dindial Laljie Kenneth Steele Jamie Smith Allan Owens Chair Additional Attendees: Sarah Varga, Accountant Scott Christiansen, Pension Board Attorney Andy Holtgrieve — Rockwood Capital Advisors Joseph Bogdahn — Bogdahn Consulting 2. Approval of Minutes The Board approved the minutes from the November 13, 2006, by a unanimous vote of 3 -0. 3. Report from Rockwood Capital Advisors Andy Holtgrieve presented the report for Rockwood Capital Advisors. He began with reviewing the Domestic Equity Portfolio. The quarter started with a little over $1.8 million dollars and ended with the same. There were disbursements of $144,740.00. A total of $104,000.00 of this was shifted into the international portfolio. The investment portfolio is 100% in equities. The total fund quarterly performance was 5.4 %. Mr. Holtgrieve stated that investments are made based upon theme changes in the market. They identify the themes and try to exploit these themes when investing. Rockwood is buying stocks that are already on the rise. January's portfolio was up 4.3% and the market was up 1.5 %, so this strategy is working. Overall there has been an 86% cumulative return over the past seven years. Today the portfolio is a large cap blend portfolio with a $35 billion market cap. The portfolio is revamped and the performance has been good. The International Fund Performance revealed a net change of almost $7000.00. The starting balance was $104,000.00 and the ending balance was $110,000.00. In two months' time the return was 6.7 %. The EAFE (The Europe, Australia and Far East Index) return is 6.2 %. Individual holdings are each up from the point of purchase. 4. Report by Bogdahn Consultint Joseph Bogdahn presented the Report for Bogdahn Consulting. He went over the account reconciliation which was a total fund value of $2,779,000.00 at the start of the year. The quarterly balance was $2,834,000.00. There was again of $108,000.00. The ending value GEPB Minutes 021207 Page was $2,906,000.00. The fund was up 9.14% for the four -year average which was good. The goal is for this to be above 8 %. For the quarter the fund was up 3.8 %. The total fixed income managed by Sawgrass started the quarter with $966,000.00 and ended with $949,000.00. This reflects a gain of $8000.00. This is up 3.84% for the year. This trailed the index by a half of a percent. There has been meetings with the portfolio managers to review the Rockwood investment process. In the appraisals the total international exposure is 9.6 %. For the next meeting Joseph Boghdahn will make a presentation to the Board in reference to making the recommendation of increasing the international allocation to 15 %. He also gave an update on his firm. There are now a total of 18 employees and they have added offices located in Chicago and Milwaukee. This information is referenced in the last two pages of the handout from Boghahn Consulting. 5. Attorney Report: Revised Summary Plan Description: Scott Christiansen stated that the plan description needs to be distributed to the five active members. The investment policy statement also needs to be sent out as well. Sara Varga will handle this. He stated he needs an update on the Ordinance sent. Sara stated the second meeting is this coming Thursday. When it passes Sara will send him a copy of this with the "No Impact Letter ". The Ordinance and No Impact Letter dated from April 11, 2006, needs to be sent to Charles Slavin prior to the second reading on the Ordinance. Sara will do this. Mr. Christianson discussed the proposed fee increase from $250.00 to $290.00 per hour from Christiansen and Dehner. Scott stated this was due to increasing costs. There has been no increase for the past three years and he highlighted that they do no charge a retainer fee. A motion to approve was made by Steven Parella and seconded by Kenneth Stelle and passed by a unanimous vote of 3 -0. Approval of Commission Recapture Network Pricing: Joseph Bogdahn explained this as Lynch, Jones & Ryan with the Bank of New York have had cost increases. They are outlining they will still rebate the same percentage as before but with a minimum ticket. If the rebate does not exceed the minimum ticket all will remain the same. Motion was made by Steven Parella to approve this, which was seconded and passed by a vote of 3 -0. A letter was signed off by Steven Parella and handed back to Joseph Bogdahn who will send this out. Approval of Bills: Motion to pay Sawgrass. Quarterly payment of $838.00. Motion was made to pay the bill, motion seconded and passed unanimously. Rockwood Capital Advisors in the amount of $3192.52. Motion was made to pay the bill, motion seconded and passed unanimously. Christiansen and Dehner in the amount of $1570.30. Motion was made to pay the bill, motion seconded and passed unanimously. Salem Trust. This bill reflects a minimum quarterly payment of $750.01. Motion was made to pay the bill, motion seconded and passed unanimously. 6. ADJOURNMENT GEPB Minutes 021207 Page 2