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HomeMy WebLinkAboutAgenda Fire Pension 110613THE RESOURCE CENTERS , LLC 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Phone (561) 624-3277 Fax (561) 624-3278 WWW.RESOURCECENTERS.COM PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND Meeting of Wednesday, November 6, 2013 Location: City Hall, Council Chambers Palm Beach Gardens City Hall 10500 North Military Trail Palm Beach Gardens, FL 33410 Time: 1 PM AGENDA 1. Call Meeting to Order 2. Public Comments 3. Minutes: • Regular Meeting Held on September 9, 2013 4. Actuary Report: Foster & Foster (Doug Lozen) • Assumption Experience Study 5. Investment Monitor Report: The Bogdahn Group (Troy Brown) • Franklin Templeton Global Bond – New Share Class 6. Attorney Report: Sugarman & Susskind, P.A. (Pedro Herrera) 7. Administrative Report: Resource Centers (Audrey Ross) • Disbursements o (Foster & Foster Invoice Explanation) • Benefit Approvals • Proposed 2014 Meeting Dates 8. Old Business • Update on self directed DROP & Share Accounts • Review of Draft Summary Plan Description 9. New Business 10. Other Business 11. Schedule Next Meeting: Monday January 13, 2014 @ 9AM. 12. Adjourn PLEASE NOTE: Should any interested party seek to appeal any decision made by the Board with respect to any matter considered at such meeting or hearing, he will need a record of the proceedings, and for such purpose he may need to insure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. In accordance with the Americans With Disabilities Act of 1990, persons needing a special accommodation to participate in this meeting should contact The Resource Centers, LLC no later than four days prior to the meeting. October 11, 2013 Regions Institutional Services Mindy Johnson 1511 N. Westshore Blvd. Suite 850 Tampa, FL 33607 RE: Palm Beach Gardens Firefighters’ Pension Fund Mutual Fund EXCHANGE Transaction Dear Mindy: Palm Beach Gardens Firefighters’ Pension Fund directs Regions to effectuate an EXCHANGE of all current shares of the Templeton Global Bond Fund (CUSIP 880208400, Ticker TGBAX) in account 2850000239 to shares of the Templeton Global Bond Fund Class R-6 (CUSIP 880208772, Ticker FBNRX). Should you require assistance from Franklin Templeton to complete this EXCHANGE transaction, please communicate with the institutional contact listed below. Christopher W. Tatlock Consultant Relations Manager (212) 632-4216 ctatloc@frk.com Please make sure that all distributions made from the Templeton Global Bond Fund R-6 going forward will be automatically reinvested in the fund. Should you have questions regarding these transactions, please contact Troy Brown of the Bogdahn Group, The Plan’s investment consultant. Troy can be reached at 863- 293-8289. Sincerely, Audrey Ross Administrator Palm Beach Gardens Firefighters’ Pension Fund CC: Troy Brown, The Bogdahn Group THE RESOURCE CENTERS , LLC 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Phone (561) 624-3277 Fax (561) 624-3278 WWW.RESOURCECENTERS.COM PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND 2014 MEETING DATES Monday January 13, 2014 @ 9AM Wednesday February 5, 2014 @ 1PM Monday March 10, 2014 @ 9AM Wednesday May 7, 2014 @ 1PM Monday July 7, 2014 @ 9AM Wednesday August 6, 2014 @ 1PM Monday September 8, 2014 @ 9AM Wednesday November 5, 2014 @ 1PM PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND MEETING OF NOVEMBER 6, 2013 BENEFIT APPROVALS APPLICATION FOR DISTRIBUTION OF DROP ACCOUNT PETER BERGEL Date of Retirement: 07/01/2013 Date of Birth: 09/01/1960 Type of Distribution: rollover – final distribution Total Gross Distribution: $40,275.83 Tax Withholding (20%): $ 0.00 Total Net Distribution: $40,275.83 Action: ______________________________ (Chairman) (Secretary) Date_________________ PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND MINUTES OF MEETING HELD September 9, 2013 A meeting of the Board of Trustees was called to order at 9:04AM at Council Chambers, Palm Beach Gardens, Florida. Those persons present were: TRUSTEES OTHERS Rick Rhodes, Chairman Scott Baur, Administrator Mark Joyce, Vice Chair (arrived 9:08AM) Audrey Ross Administrator Tom Murphy, Secretary Troy Brown, Investment Consultant Ed Morejon Pedro Herrera, Attorney Martin Cohen Jeff Detwiller, Investment Manager PUBLIC COMMENTS N/A MINUTES The Board reviewed the minutes of the regular meeting held on August 7, 2013. A motion was made by Tom Murphy to approve the minutes of the August 7, 2013 regular meeting as amended. The motion was seconded by Ed Morejon and carried 4-0. INVESTMENT MANAGER REPORT: GARCIA, HAMILTON & ASSOCIATES (JEFF DETWILLER) Mr. Detwiller introduced himself to the board and stated that he is the fixed income manager for this fund. He reviewed Garcia, Hamilton & Associates’ (GHA) philosophy and commented that that “Their goal is to outperform the benchmark, net of fees, over a full market cycle using a high quality strategy with less risk and low turnover”. Mr. Detwiller explained that it has been a tough market recently and it has been driven by the Feds; also the Treasury rates have risen as well. He reviewed the plans performance for the quarter ending June 30, 2013 and stated that they were negative, but slightly ahead of the index at -1.7% versus -1.8%. For the fiscal year to date they are in the same position at -0.1% versus the index at -1.5%. Mr. Detwiller explained that not owning enough Treasuries during the quarter contributed to their underperformance, but since the quarter ended they have bought another 6% into Treasuries. The Trustees discussed the underperformance and Mr. Detwiller noted that the plans average maturity and duration is shorter compared to the index, and he commented that he will also continue to buy more into Treasuries and will hopefully outperform the index next quarter. INVESTMENT MONITOR REPORT: THE BOGDAHN GROUP (TROY BROWN) Mr. Brown stated that as of August 31, 2013 the fund is up 1.8% for the quarter and for the fiscal year to date they are well ahead of their assumed rate of return at 11.6%. Although, Mr. Brown did have a recommendation to move $190K from the Fiduciary Management Investment account to the plans receipt and disbursement (R&D) account so that the R&D account remains funded without having to sell off anything. 2 A motion was made by Ed Morejon to authorize and approve the transfer of $190K from the Fiduciary Management Investment Account to the plans receipt and disbursement account per the recommended by the Plans Investment Consultant. The motion was seconded by Martin Cohen and carried 5-0. Mr. Brown stated that the American Realty and the Intercontinental addendums have been executed for the next capital call. The plan will be allocating an additional $750K to each manager. He commented that he will determine where to take the funds from at the time of the capital call so that he can see what asset class is over weighted at that time. There is an enter queue for both funds. Mr. Brown explained that he had the managers sign the revised investment policy guidelines (IPG) as well as their revised addendums too. He stated that he will send a copy the completed document to the Division of Retirement for their approval. Mr. Herrera commented that he did review the revised IPG in advance and that he had no objection to them. A motion was made by Tom Murphy to adopt the revised addendums for Agincourt and Garcia Hamilton and Associates. The motion was seconded by Mark Joyce and carried 5-0. ATTORNEY REPORT: SUGERMAN & SUSSKIND (PEDRO HERRERA) Mr. Herrera stated that the police board received a letter from the City regarding the merging of the Police and Fire board with the FRS. He explained that as long as one member remains in the current plan, then the plan would still receive their Chapter 175/185 money. New members would have the option of going into the FRS or to stay in the current plan. Mr. Herrera explained that the plan sponsor (the City) would still remain liable for paying their contributions each year. He noted that he will update the board on this situation as more information becomes available. ADMINISTRATIVE REPORT: RESOURCE CENTERS (AUDREY ROSS) DISBURSEMENTS The Board reviewed the disbursements presented for approval by the Administrator. The Trustees had a lengthy discussion on the Foster & Foster invoices and had some questions pertaining to certain charges regarding the DROP accounting and COLA calculations. The Trustees asked Ms. Ross to get clarification from the Actuary on those specific charges before they are paid. A motion was made by Ed Morejon to approve the disbursements that were presented by the Administrator with the exception of the items on the Foster & Foster invoice for a total $350. The motion was seconded by Tom Murphy and carried 5-0. BENEFIT APPROVALS The Board reviewed the applications for distribution of DROP & Share accounts (partial withdrawals) for Peter Bergel. A motion was made by Tom Murphy to approve the applications for distributions of DROP and Share accounts for Peter Bergel. The motion was seconded by Mark Joyce and carried 5-0. 3 OLD BUSINESS Mr. Herrera noted that he sent out the RFP for the self directed DROP and share accounts to about 6 different service providers. He noted that he received back one response from Nationwide Financial, and they are extremely expensive. The Trustees had a very lengthy discussion on their other options and alternatives at this time. Mr. Brown presented that board with an example of a self directed option that another one of his clients uses. Basically the members would have the opportunity to join one of the existing mutual funds that are already held in the portfolio, or Mr. Brown can come up with a couple of “self directed account” options, but he noted that it would be a separate service agreement with Bogdahn. The Trustees continued their discussion on the different investment options and Mr. Herrera stated that he would recommend at this time for the board to form some kind of overview committee to work on this project and come up with a plan of action. Mr. Morejon stated that he will get the Ms. Ross and Mr. Baur in between meetings to come up with a plan of action and will report back to the board at the next meeting. NEW BUSINESS The Trustees discussed the DROP accounting and how the interest is being posted to the members account. Mr. Baur stated that the average daily balance should be used when they are calculating the interest, but Mr. Morejon commented that the Actuary is calculating the interest based off the average balance in the account at the end of the quarter. The Trustees directed Ms. Ross to notify the Actuary that they should be calculating the interest off the average daily balance, instead of the average quarterly balance. There being no further business, the meeting adjourned at 12:16 PM. Respectfully submitted, Tom Murphy, Secretary From:David Ray To:Audrey Ross Cc:Troy Brown; Lauren Cappello Subject:Palm Beach Gardens Firefightrs" Pension Fund Date:Friday, October 11, 2013 2:30:27 PM Attachments:image001.jpg 2013-10-11 Palm Beach Gardens Firefighters - Mutual Fund EXCHANGE.docx Hi Audrey, We were recently informed by Franklin Templeton that they have launched a new share class of the Templeton Global Bond Fund. The new R6 shares (Retirement Class) are exactly the same underlying fund as what is currently in your portfolio. However, the R6 share class is offered at a lower cost. Below is a cost comparison of the Templeton Global Bond Fund (TGBAX), which is in the portfolio, and the newly released R6 share class (FBNRX): Fund TICKER Expense Ratio Templeton Global Bond Adv TGBAX 0.65% Templeton Global Bond R6 FBNRX 0.55% We are recommending the administrative action to EXCHANGE the portfolio’s current “Advisor” shares of the Templeton Global Bond fund into the “R-6” share class shares. We have attached a letter of direction to complete the EXHANGE. Unlike a regular “sale and purchase” transaction, the share EXHANGE transaction is coordinated by the custodian with the support of the fund provider. As a result, the portfolio will never be “uninvested” from the funds or out of the market during the EXHANGE process. If you have any questions, please contact myself or Troy Brown. Thanks, David Thank you, David Ray Internal Consultant 4901 Vineland Road, Suite 600 Orlando, FL 32811 Main# 863-293-8289 Direct# 407-520-5354 Fax# 863-292-8717 TBG 'This e-mail message, including any attachments, is intended only for the use of the individual or entity to whichit is addressed and may contain information that is privileged and/or confidential. If you are not the intended recipient or the employee or agent responsible for delivering the communication to the intended recipient, pleasenotify us immediately by replying or contacting The Bogdahn Group at 866-240-7932 in regards to this messageand then delete this message from your system. You are hereby notified that any use, dissemination, distributionand/or reproduction of this message and/or any attachments by unintended recipients is unauthorized and may beunlawful. 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