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HomeMy WebLinkAboutMinutes Police Pension 083007City of Palm Beach Gardens Police Officers' Pension Fund Minutes of the Meeting Held August 30th, 2007 The regular meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers' Pension Fund was called to order at 9:07 AM by Chairman, Jay Spencer in the Council Chambers at the Palm Beach Gardens Police Community Room at 10500 North Military Trail, Palm Beach Gardens, Florida. TRUSTEES PRESENT OTHERS PRESENT Jay Spencer, Chairman John McCann (Thistle Asset Consulting) David Pierson, Secretary Steve Stack (ICC Capital Management) Jules Barone Cliff Rogers (ICC Capital Management) Brad Seidensticker Bonni Jensen (Hanson, Perry, & Jensen, P.A.) Wayne Sidey Annette Tucci (Palm Beach Gardens Clerk's Office) Scott Baur (The Pension Resource Center, LLC) Audrey Walker (The Pension Resource Center, LLC) Denise D'Entremont (RhumbLine) MINUTES MOTION: Mr. Seidensticker made a motion to approve the minutes from May 14th, 2007. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5 -0. Mr. Pierson and Mr. Seidensticker stated that they did not receive the meeting packets that were send via email a week prior to the meeting. INVESTMENT MANAGER REPORT RumbLine — Presented by Denise D'Entremont: Ms. D'Entremint began by thanking the Board for inviting her down from Boston to be here at the meeting. She reported that as of July 31St, 2007, RumbLine had a total of $10,885,407.92 of assets in the portfolio. Ms. D'Entremont continued reviewing the returns of each individual index component, to make sure they were in line with the corresponding benchmarks. She also reviewed the returns of the top holdings, and went over the best and the worst performances in the index. She stated that this particular plan has index components that track the S &P 500 (Large Cap), S &P 400 (Mid Cap), and S &P 600 (Small Cap). Mr. McCann questioned Ms. D'Entremont about the age of the commission recapture, and she replied that she will review it and get back to the Board. She then provided the Board with information on the longer term performances of the S &P component. Lastly, Ms. D'Entremont advised the Board of changes to personnel including the promotion of Wayne Owen to CEO of Rumbline. ICC Capital Managment — Presented by Steve Stack and Cliff Rogers: Mr. Stack reported that there was $11,447,976 in the fixed income assets. He stated that despite all the macular turmoil the economy somehow still seems to a have steady growth. He reported that for the quarter ending on June 30th, 2007 the bonds had a return of -.26 %, and he also reported that the market continues to experience heavy volatility. Mr. Seidensticker questioned if the plan had any direct or indirect exposure to CDO's, and Mr. Stack stated that the portfolio has no direct exposures to CDO'S. He continued explaining that the mortgage pools held by the plan as investments were backed by the full faith and credit of the US Government. Mr. Stack also reported that the lower rated securities held by the plan are an A -. He stated that ICC invests in costly service that advises the portfolio managers of potential quality upgrades and downgrades in the portfolio. Mr. Stack recommended that the plan policy exclude investments that are made in either CMO's or CDO's, even though the plan does not invest in these issues anyways. Ms. Jensen stated that even though the paid services managers should have direction, she advises the trustees that they can always amend the policy again in the future, if the conditions warrant it. MOTION: Mr. Seidensticker made a motion to have written in the policy that all mortgage obligations have to be guaranteed by the Government Agencies. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5 -0. Mr. Stack stated that he will email Mr. McCann with some suggested language and then he will forward it to the Board. Mr. Stack commented that he does not have a summary on the growth portfolio, which is still evolving and still performing well. He stated that ICC is still slowly investing the cash and will update the Board on the progress. Ms. Jensen requested Mr. Stack to provide a report to her on the new portfolio before September 30th, 2007. INVESTMENT CONSULTANT REPORT Thistle Assets Consultant — Presented by John McCann: Mr. McCann reviewed the performance of the international stock mutual fund. He recommended no changes to the use of the current fund choices. He reported that Mainstays ICAP added an additional manager to their group, which had no affect on the plan. Mr. McCann then reviewed the compliance of the portfolio with the investment policy. Even though the portfolio slightly under performed the policy guidelines, the portfolio did significantly out perform the peer manager universe. Mr. McCann also reviewed all the other asset allocations. Mr. McCann reported that for the quarter ending June 30th, 2007, the portfolio earned 3.35% versus 3.77% for the benchmark and for one year the portfolio earned 13.28% versus 15.07 for the benchmark. Mr. McCann stated that the one year returns ranked in the top 17 percentile, and the year to date fiscal was 9.57 %. Mr. McCann commented that the risk of the portfolio is lower then the market. Mr. McCann requested that the Board execute a revised investment policy Mr. Spencer shared some information from the last FPPTA conference he attended regarding the investments in the international markets. ATTORNEY REPORT Hanson, Perry & Jensen, P.A. — Presented by Bonni Jensen: Ms. Jensen reported that the amount of the Chapter 185 premium tax money that was received was $460,437.69, which has slightly risen from the previous year which was $428,055.49. Ms. Jensen stated that the plan actually gave some money back for a guarantee that the police plans money would not decrease. Ms. Jensen commented that the state advises that the plan should begin to look into implementing some benefit improvements. Ms. Jensen gave an updated to the Board on the progress of the 2006 Annual Report, stating that the Administrators are still working on resolving some additional questions that the state came back with. Mr. McCann suggested that the Chapter 185 money go to ICC Capital; dividing 60% into the large cap growth and the remaining 40% into the fixed income. MOTION: Mr. Pierson made a motion to move the Chapter 185 money to ICC Capital, with 60% going into large cap growth and 40% going into the fixed income. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 5 -0 DISBURSEMENTS APPROVALS MOTION: Mr. Sidey made a motion to approve the Disbursements. SECOND: Mr. Barone seconded the motion. CARRIED: The motion carried unanimously 5 -0 ADMINISTRATOR REPORT The Pension Resource Center, LLC — Presented by Scott Baur: Mr. Baur answered any questions or concerns that the Board might have had in regards to the switch of the banks. Mr. Baur also updated the board on the situation regarding the data transition from the city which resulted in inaccurate calculations for the payroll data. He stated that they are still working very hard on getting this matter resolved. OTHER BUSINESS Mr. Spencer reported that there were some conflicts on meeting dates with the council chambers. He stated that the Board will continue to meet in the Police Community Room on the fourth Thursday, of the second month in the quarter. Mr. Spencer wants to further discuss at the next meeting about allowing members to keep their DROP funds in the plans account following separation from their service. A7 URN There being no further business, the Trustees officially adjourned the meeting at 10:50AM Respectfully submitted, DAVID PIERSON, Secretary