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HomeMy WebLinkAboutMinutes Police Pension 080912 Minutes 8-9-12.doc Page 1 of 3 City of Palm Beach Gardens Police Officers’ Pension Fund Minutes of the Meeting Held August 9, 2012 The regular meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers’ Pension Fund was called to order a t 9:01 AM by David Pierson in the Council Chambers at the Palm Beach Gardens City Hal l at 10500 North Military Trail, Palm Beach Gardens, Florida. TRUSTEES PRESENT OTHERS PRESENT David Pierson, Secretary Audrey Ross (Resou rce Centers) Brad Seidensticker, Trustee Bonni Jensen (La w Offices of Perry & Jensen) Greg Mull, Trustee Donna Kramer (PBG Clerk’s Office) Marc Glass, Trustee Steve Stack (ICC Capital Man agement) John McCann (Thistle Asset Consulting) INVESTMENT MANAGER REPORT ICC Capital Management – Presented by Steve Stack Mr. Stack discussed the current fixed income market environment and stated that the 10 year Treasuries are starting to sell off. T he market is still rallying and there is still a lot of cash sitting on the sidelines waitin g to be invested. He commented that it has become a traders market over the last 5 year s and that the elections will have a big impact on Corporates. For the quarter ending June 30, 2012 the total fixed income fund was behind at 1.72% versus the benchmar k at 2.06%, and for the fiscal year to date the fund was also behind at 3.17% vers us 3.52%. Mr. Stack briefly reviewed the equity portfolio and stated that the m arket is negative at this time. It has been a tough run on equities and they are behin d the benchmark for the quarter at -5.39% versus -4.02%, and for the fiscal year to date they are positive but still behind at 18.77% versus 21.75%. Mr. Stack spoke ab out ICC’s outlook and reported that they will be selling off more in Trea suries and they will continue to look for more yield on the fixed income side. INVESTMENT CONSULTANT REPORT Thistle Asset Consulting – Presented by John McCann Mr. McCann reviewed the Plan’s compliance checklist and commented that the total fund is behind for the 3 year period as well as the quarter. He stated that it was not a good quarter and all equities were negative and f ixed income was the only sector that was positive. He reviewed the asset allocatio n and stated that we are inline with the Plan’s policy. Mr. McCann reported that r eturns for the quarter and noted that American Realty is not reflected in this repor t so there are a little more assets on the book then what is reflected here. The total fund for the quarter net of fees was negative and behind the benchmark at -2.25% ver sus -1.91%, and the total equities were in the same position at -4.25% versus -4.02%. Fixed income had a slightly better quarter at 1.87% versus 1.86%. Mr. McCann stated that it is a nicely diversified portfolio and long term they have outpe rformed the benchmark. Lastly the board discussed ICC’s recent underperformance a nd what has contributed to it. They are still carrying last September’s poor perfo rmance on the books and also the past 2 quarters have hurt them as well. ICC is not doing anything different in regards to their investment process, but rather the markets have been tough on Minutes 8-9-12.doc Page 2 of 3 their strategy. Mr. McCann noted that he is not ma king any recommendations at this time. ATTORNEY REPORT Law Offices of Perry & Jensen - Presented by Bonni Jensen Ms. Jensen reviewed the draft ordinance changes tha t were passed on first reading by the City Council and will also be on the agenda for the second reading this week. She stated that the board will need to authorize th e Plan’s Actuary, GRS to prepare the Impact Statement relating to the proposed ordin ance. MOTION: Mr. Pierson made a motion to authorize and approve GRS to prepare the impact statement relating the proposed draft ordinance. SECOND: Mr. Mull seconded the motion. CARRIED: The motion carried unanimously 4-0. ADMINISTRATOR REPORT Resource Centers – Presented by Audrey Ross Ms. Ross presented that board with the PRC fee reta iner letter. She commented that PRC was hired by the board in 2006 and their initia l monthly retainer was $2,275 and was guaranteed for 3 years. PRC has not addres sed the fees since then and now they are asking for a one time monthly fee increase to $2,575 effective September 1, 2012. In addition PRC is also asking for a COLA increase of 3.5% effective each January 1. The Trustees discussed the proposed fee increase and commented that they would like to wait until the Chairman is here to discuss the COLA part of the increase. MOTION: Mr. Pierson made a motion to approve PRC’s monthly fee increase from $2,275 to $2,575 effective September 1, 2012. SECOND: Mr. Mull seconded the motion. CARRIED: The motion carried unanimously 4-0. Ms. Ross noted that the State Annual Report was app roved and that we should be receiving the money by this week. MINUTES MOTION: Mr. Pierson made a motion to approve the mi nutes from the January 26, 2012 regular meeting, April 19, 2012 re gular meeting, and the May 10, 2012 special meeting. SECOND: Mr. Glass seconded the motion. CARRIED: The motion carried unanimously 4-0. DISBURSEMENTS APPROVALS MOTION: Mr. Pierson made a motion to approve the di sbursements. SECOND: Mr. Glass seconded the motion. CARRIED: The motion carried unanimously 4-0. Minutes 8-9-12.doc Page 3 of 3 BENEFIT APPROVALS MOTION: Mr. Glass made a motion to approve the appl ications to exit the DROP for Don Ammon and George Betscha. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4-0. MOTION: Mr. Glass made a motion to approve the appl ication for distribution of DROP account (due to retirement) fo r Don Ammon. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4-0. FINANCIAL STATEMENTS The board reviewed and discussed the financial stat ements that were provided through May 2012. The board received and filed the financial statemen ts through May 2012. OTHER BUSINESS Ms. Ross presented the board with the June 30, 2012 Salem Trust class action report. She noted that there were no class actions filed or settlements received on behalf of the plan for the quarter. PUBLIC COMMENTS N/A AJOURN There being no further business, and the future mee tings are scheduled for the 3rd Thursday of the first month proceeding the quarter. The next regular meeting was scheduled for Thursday October 18, 2012 at 9AM; the Trustees officially adjourned the meeting at 10:11AM. Respectfully submitted, _____________________________ DAVID PIERSON, Secretary