12/02/1985
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TRUSTEES Of THE EMPLOY8ES' PE~SION FUND MEETING
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December 2, 1~85
The City Commission, meeting as the Board of Trustees of the
Pension Fund, met in regular session at the City Hall,
19t15, at 9:02 a.m., with the following members
Employees'
Monday, December 2,
present:
Kathleen Kelly
Rita Garvey
James Berfield
Lee Regulski
Don Winner
Mayor/Commissioner
Vice Mayor/Commissioner
Commissioner
Commissioner
Conmissioner
Also present were:
Anthony L. Shoemaker
Milton A. Galbraith, Jr.
Cynthia Goudeau
City Manager
City Attorney
City Clerk
The Mayor called the meeting to order.
ITEM #2 Minutes - Commissioner
the November lB, ly85 meeting.
unanimously.
Winner moved to approve the minutes of
MOtion was duly seconded and carried
ITEM #3 - Recommendations of the Pension Advisory Committee.
C)'...
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Request for Acceptance into Membershi~.
a.
The City Manager presented the recommendation of the Advisory
Committee to approve membership for two (2) employees listed below:
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Carol Harrison
Frank Woumans
Classification
Library Assistant III
Maintenance Worker II
Department
Library
Public Works
Commissioner Garvey moved to accept the recommendation of the
Advisory Committee. Motion was duly seconded and carried
unanimously.
ITEM #4 - Other Business.
On November 15, 1~B5, City staff and Trustee
Willoughby and Arvel Gschwend
Advisor for the Pension fund.
Winner met with John
Bank, the Equity Investment
summary of this discussion:
of Florida ~ational
The following is a
1.
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Proposals were solicited from
measurement analysis systems.
the lowest bidder at $20,300, as
to the City needs. The fee will
commissions, which results in no additional
the Pension Fund. City staff concurs
recommendation.
three vendors of performance
SEI (formerly Becker) was
well as the most responsive
be paid through directed
cash outlay to
unanimously with this
1 .
December 2, 1985
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2. In 1y80, Loomis Sayles was hired by the Fund to employ a
covered call option investment strategy. They were given
$1,000,000 to invest on a trial basis, which could be
increased if the strategy proved successful. The results,
while acceptable, have been disappointing relative to the
other Bquity Managers. For the three-year period ended
6/30/85, Loomis Sayles produced a 15.2% annual rate of return
while Denver was 22.b1 and Aetna was 30.5%. There does not
appear to be any evidence that this strategy is either
benefiting the fund directly or providing a meaningful hedge
against market declines. The recommendation, unanimously
endorsed by City stafr, is to redistribute the apporximately
$2,400,000 under investment by ~oomis Sayles equally to the
two remaining Equity Managers.
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3. In fiscal 19B5, contributions to the fund from employees and
the City exceeded disbursements by approximately $2,500,000.
The Trustees were requested to approve the allocation of
this amount equally to Aetna and Denver for investment in
common stocks in accordance with the existing Manager
Agreements. The fiscal 1984 contribution was allocated
completely to fixed income investments, resulting in a
current mix of approximately 41% equities, 49% fixed at book
value (4~% equities, 56% fixed at market value). Since most
current asset allocation models are recommending 50%
equities, and since the City plan allows for up to 50%
equities, it seems prudent to allocate the entire current
year contribution balance equally to our two Bquity
Managers. Upon approval it will raise our total equity
exposure to 45% at book value and 4B% at market value.
Commissioner Winner moved to approve 1) that the Trustees employ SEI
Corpo~ation to provide performance measurement analysis at a total annual cost
of $20,300 in directed commissions (lIsoft dollars"); 2) that the Trustees
terminate the Investment Management ~greement with Loomis Sayles and Company
and that the investments (approximately ~2,4000,OOO) be redistributed 50% to
Aetna Capital Management and 50% to Denver Investment Advisors; and 3) that
$2,500,000 of existing funds resulting from the 84-~5 contributions be
distributed 50% to Aetna Capital Management and 50~ to Denver Investment
Advisors for investments and that the appropriate officials be authorized to
eKecute same. Motion was duly seconded and carried unanimously.
ITEM #5 - Meeting adjourned at 9:09 a.m.
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May ommissioner . , /
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Attest:
~~~Z". )~~~SC~
~Clerk
2.
December 2, 1985
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"W
AGBHDA
Board or Trustees or the Eaployees' Pension Fund
December 2, 1985
9:00 a.m.
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ACTION
1. Call to order
2. Approval of Minutes 1111U/d5.
3. Recommendation of the
Pension Advisory Committee
a. Request for acceptance
into membership:
C. Harrison
F. Woumans
4. Other Business
a. Recommendations of Equity
Investment Advisor
.
":.~ ,t>- 5. Adjournment
1. 9:02 a.m.
2. Approved as submitted.
3.
a. Accepted 2 members.
4.
a. Approved.
5. 9:U9 a.m.
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