Loading...
06/13/1988 (2) .r ~ ~. ~ '~"n.~'r1)':j\.~Mt...,.lM.:it.:'i~t'~ffj~~s:;;:~nn..v'''~.::.n.,\\$.'!~,,''''vrlr1-...u'-;u'~n'!(~}:1t.;1l\-!','f,t"":.~)t:"j."i" .~~~ ..tf"'j)'I,!...~,\ ~,,'?I> "'t: l~""'l"'~~".' ; . ':!\ ~ .~j4,. ,s..,'~' ~f,...:!t.~ -". 'tf-.'<l-~.""<," ,,,~:J ,,,,;'r. -; .,~ :::. :;~,,,::'t:~....~ :.~~Mt'.. ~'tt.t~-~"~,1~~",t~',:'W~n\'1"":t,.}. ,! o TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETIttG June 13, 1988 i ,1 The City Commission, meeting as the Board of Trustees of the Employees Pension Fund, met in regular session at the City Hall, Monday, June 13, 1988, at 1:05 p.m., with the following members present: Rita Garvey James Berfield Mayor/Commissioner Vice-Hayor/Commissioner (Arrived at 1:07 p.m.) Commissioner Commissioner Commissioner Lee Regulski Don Winner William Nunamaker Also Present were: Ron H. Rabun Hilton A. Galbraith, Jr. Cynthia Goudeau City Manager City Attorney City Clerk ITEM 82 - Minutes - Commissioner Regulski moved to approve the minutes of the Hay 31, 1988, meeting. MotioD was duly seconded and carried unanimously. o ITEM 03 - Investment Allocation of Pension Fund Assets On Hay 25, the Investment Committee met with our advisors John Willoughby of Florida National Bank, and Michael Beasley of Callan Associates. The primary objective was to consider asset allocation as directed by the tr~stees at the April ~ trustees' meeting. The consensus of the committee is that virtually all of the negative indicators that were present last summer have moderated significantly. Today's 2000-2100 trading range no longer looks over-valued, and many professional investors have again become bullish on stocks. The asset allocation model used internally by Florida ~ational Bank recently increased its recommended equity exposure to 50%, with bonds (including GIC's) at 45% and cash (including treasuries) at 5%. This is the same model which Hr. Willoughby used last fall in recommending a significant withdrawal from both the stock and GIC portfolios. Discussions with both equity managers have confirmed their beliefs that increased equity exposure is warranted at this time. ,~ ~;) Based on all the available data and the opinions of our advisors and managers, the committee reoommends restructuring the fund's asset mix to 50~ equities, 50% Gle's, oonsistent with the allocation successfully employed by the fund for approximately five years prior to last August. The 50% equity exposure is the maximum permitted by the pension ordinance, and the 50% GIC portion, we believe. provides a fixed rate "anchor" to help moderate any severe fluctuations in the ~quity market. As indicated in the letter from Mr. Willoughby, we also feel that the ability of our managers to raise up to 20% cash provides for limited automatic asset allocation, triggered by each manager's prOfessional assessment of the current economic environment. Book 2 158. 06/13/88 " .~ ~' ~Jo::1l~-:~it~to/.$i~:i~j~~;"~~~~di~~'!t~~\~~~~.~'t~Q~~!ii--W.>tl~~:r.'i~!!,>tl't~"fr~.'"'~;!.~'1t,.\'C>#\.;~;,~'!nr.,--~:');'~,,~'~.f..~::Y:"t.~':- 'T:(:'''~. ~"~;~ ~:;t~,~~.\ ~'-:1:~ ,\"1". ~."..~.~~:(:s:.~1r::~Y', :;~~;1:'~~~:"~'~.~~~;~?1~~~~1~13'f.~,~~~fj:~..~~1;;:':~Fjl~=:'~~tr1~3~'~: ' o With approval, the move toward the 50-50 asset allocation will begin by liquidating the treasury portfolio prior to September 30. Money for GIC investments will be transferred to Florida National Bank to be managed under the terms of the existing contract. Money for equity investments will be transferred equally to Denver Investment Advisors and Aetna Capital Management, Inc., also to be managed under the terms of our existing contracts. Moneys in the consolidated cash pool, except for approximately $1 million to be retained for cash flow requirements, will likewise be transferred as available, without premature liquidation of existing cash pool securities. As indicated last August, the recommendation to raise 20% cash was a temporary response to what was viewed as unusual economic conditions, and was not a fundamental change in the long-term investment strategy. It is the collective best judgement that this is the appropriate time to return to our traditional, yet conservative 50-50 investment policy. Commissioner Regulski moved to approve an overall investment mix of 50% equities, 50% GrC's, and authorize the transfer of cash pool assets and the liquidation and reinvestment of existing treasury securities to accomplish this objective was approved. KotioD was duly seconded and carried unanimously. ITEM ff4 - Discussion: Steve Zimmerman Agreement o John Nicholson, Pension Advisory Committee (PAC) member, raised a question at the last Trustee meeting regarding the Trustees authority to settle Mr. Zimmerman's claim by using Pension funds to give service credit to Mr. Zimmerman as agreed to in the settlement. Mr. Nicholson was concerned because when an employee leaves the City, the City's contribution to their pension is used to offset future contributions needed. Discussion ensued regarding the Trustee's action. It was stated no one was adversely impacted as the actuarial study required will note any adjustments that may be needed and the City's general fund will make the needed contribution. It was emphasized that the Trustee's action was totally proper. No action was taken. ITEM - John Nicholson, PAC member, stated he has discovered some written guidelines for PAC. Based on these guidelines the PAC has made some errors, in particular in the Lois Maroon and Larry Dean cases. The PAC will be discussing this in the near future. ITEM D5- Meeting adjourned at 1:21 p.m. ATTEST: @ C'f~L;', L- ' ii.._-<l/~~ eit Clerk. Book 2 159. 06/13/88 ,lr j~l""" -, ~IR~M~_11~~dC<<"'" CD AGENDA Board of Trustees of the Employees' Juno 13. 11)88 , :00 Pl.1 Pension 1. Call to order. 1 . , :05 p.m. 2. Approval of Minutes of t1ay 31, 1938 2. Approved as submitted 3. Investment Allocation of Pension Fund Assets 3. Approved II. Discussion: Steve Zimmerman Acreement II. No Action. AGreement proper. Oth e r Items: Joh~ Nicholson reported that there arc some written guidelines for the PAC and based on them some errors have been made. The PAC will discuss this in the future. 5. Adjournment. 5. 1 :21 p.m. I!"!\ ~ Dook ~ 157. 06/13/88 !I ,4 - ..-: '," 1-' ...i..