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HomeMy WebLinkAboutMinutes Fire Pension 082007PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND MINUTES OF MEETING HELD August 20, 2007 A meeting of the Board of Trustees was called to order at 10:02 A.M. at Station 3, Palm Beach Gardens, Florida. Those persons present were: TRUSTEES OTHERS Ed Morej on Philip Buttaravoli Tom Murphy Steve Rogers MINUTES Margie Adcock, Administrator Robert Sugarman, Attorney Joe Bogdahn & Dave West, Investment Monitor The Board reviewed the minutes of the meeting held July 30, 2007. Mr. Sugarman noted that he had some minor corrections to the minutes. A motion was made, seconded and carried 4 -0 to accept the minutes of the meeting held July 30, 2007 as amended. ATTORNEY REPORT Mr. Sugarman stated that he reviewed the Addendum to the Administrative Manager Agreement that was approved by the Board at the last meeting and advised that it was ready to be executed by the Chairman. There was some discussion on the increase in the administrative fee. Mr. Rogers stated that he had a concern with the additional cost for meetings in excess of six per year. Ms. Adcock reminded the Board that this was discussed back in January of this year, prior to the Board changing to monthly meetings. She also noted that there is additional work that their office must do in terms of additional meetings. A motion was made, seconded and passed 3 -1 to authorize the Chairman to execute the Addendum to the Administrative Manger Agreement with Mr. Rogers opposing the motion. INVESTMENT MONITOR REPORT Joe Bogdahn and Dave West appeared before the Board. They discussed the investment performance for the quarter ending June 30, 2007. The Fund was up 2.73% for the quarter while the benchmark was up 3.86 %. The total market value of the Fund as of June 30, 2007 was $21,166,000. The asset allocation at market was 59% in equities; 17% in fixed income; 3% in REIT and 21% in cash. It was noted that the high cash position was due to the timing of the funding of Galliard and the REIT. It was noted that the long -term numbers of the Fund still look good. Equities for the quarter were up 4.56% versus the benchmark which was up 5.91 %. The equity portfolio managed by Dana was up 4.69% for the quarter while the benchmark was up 5.77 %. Mr. West stated that they had no concerns with Dana. They had a bad quarter or two but there have been no changes in the style or management of the company. The total market value of the equity portfolio managed by Dana was $10,931,000. The fixed income portfolio was down .27% for the quarter while the benchmark was down .14 %. The total market value of the fixed income portfolio was $3,525,000. The international equities managed by Voyageur Asset Management were up 3.80% for the quarter while the benchmark was up 6.67 %. The 2 total market value of the international equity portfolio was $1,772,000. The REIT portfolio was up 3.85% for the quarter while the benchmark was up 4.59 %. The total market value of the REIT portfolio was $541,000. Mr. West reviewed the revised Investment Policy Statement. He discussed the ranges of the different asset classes. A motion was made, seconded and carried 4 -0 to authorize the Investment Monitor to provide instruction to the Administrator to rebalance the portfolio when necessary. There was a lengthy discussion on the market and the Fund's ability to meet the actuarial assumption for the fiscal year. Mr. Bogdahn stated that meeting the actuarial assumption might be tight this fiscal year. However, even if the market started to go down, he recommended that the Board not make any changes. He stated that the Fund has a good long -term plan. There was further discussion on the revised Investment Policy Statement. It was noted that Dana looks at the value matrix. Mr. West stated that they think the market is tilting towards growth and they want to make sure that the portfolio is positioned properly. It was noted that Dana has a nice growth product. He reviewed the Dana growth product that has large cap down to mid cap. He stated that Dana employs the same growth style as they employ on the value style using equal weightings. Mr. West reviewed Schedule A. He recommended that the Board let the Investment Manager make the decision on how much they will put into the growth and value products. He stated that they feel value will lose its headwind to growth. They want to have the Fund in a good position when that happens. He noted that in order to track the additional growth portfolio there would be an additional monitoring fee. He stated that they think it is a good shift to make and it would not involve doing a manager search. Mr. West stated that they already looked at Dana's growth product and advised that it is a good product. He stated that it was his intent to only change Schedule A of the Investment Policy Statement. He advised that Mr. Harrison had a few things that he wanted to add to the Investment Policy Statement. There was discussion on the timing of changes after filing the Statement with the appropriate parties. A motion was made, seconded and carried 4 -0 to approve the revised Investment Policy Statement and authorize the Administrator to provide it to the appropriate parties. ADMINISTRATIVE REPORT Ms. Adcock presented the list of disbursements to be made. A motion was made, seconded and carried 4 -0 to approve the disbursements listed. OTHER BUSINESS Dr. Buttaravoli advised that he had resigned from PBG Medical Center after 17.5 years. He stated that over the next 4 to 5 months he would be mostly out of town and was not sure what his schedule would be like. He stated that while he was not really looking to give up his position on the Board, he was willing to relinquish his position if his absence for several months would cause a burden to the Board. It was noted that because the City has still not replaced Richard Beladino, the absence of Dr. Buttaravoli for several months would cause a burden. There was a lengthy discussion. After careful consideration, Dr. Buttaravoli advised that he was resigning from the Board effective immediately. A motion was made, seconded and carried 3 -0 to accept the resignation of Dr. Buttaravoli. The Board thanked Dr. Buttaravoli for all of his hard work and dedication. A motion was made, seconded and carried 3 -0 to authorize Steve Rogers to spend up to $200 to purchase an appropriate commemoration for Dr. Buttaravoli for all 3 his dedication and service to the Board. It was noted that Rick Rhodes was interested in serving as the 5th Trustee on the Board. Mr. Rhodes was present and provided a resume to the Board. He noted that he was on a VEBA Board for the PBC Firefighters. Mr. Sugarman stated that his position on the VEBA Board could be a dual office holding concern. He stated that the concern was not for this Board but rather for the VEBA Board. Mr. Rhodes noted that it was not a Chapter 175 VEBA. A motion was made, seconded and carried 3 -0 to appoint Rick Rhodes as the 5th Trustee on the Board. There being no further business, the meeting adjourned. Respectfully submitted, Tom Murphy, Secretary