12/01/1997 (2)
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PENSION
(TRUSTEES)
Board of Trustees of the Employees'
Pension Fund
Minutes
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ACTION AGENDA
Board of Trustees of the Employees' Pension Fund
December 1, 1 997
1. Call to order 1. 9:03 a.m.
2. Approval of Minutes: 11/3/97 2. Approved as corrected by Clerk.
3. Approve contract with ARM 3. Approved.
Capital Advisors, Inc., as a core
fixed income manager, provide for
smooth transition for addition
through opening of safekeeping
. account at SunTrust
4. Other Business: 4. None.
6. Adjournment: 5. 9:05 a.m.
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Present:
Rita Garvey
J. B. Johnson
Robert Clark
Ed Hooper
Karen Seel
Michael J. Roberto
Pamela K. Akin
Cynthia E. Goudeau
Patricia O. Sullivan
Chair
Trustee
Trustee
Trustee
Trustee
City Manager
City Attorney
City Clerk
Board Reporter
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TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
December 1 , 1997
The Chair called the meeting to order at 9:03 a.m. at City Hall.
To provide continuity for research, Items are in agenda order although not necessarily
discussed In that order.
ITEM #2 - Aooroval of Minutes
Trustee Johnson moved to approve the minutes of the November 3, 1997, meeting,
as corrected by the City Clerk. The motion was duly seconded and carried unanimously.
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ITEM #3 - Aoorove contract with ARM Caoital Advisors. Inc.. as a core fixed income
manaaer. provide for smooth transition for addition throuah ooenino of safekeeoing
account at Sun Trust
With Trustee approval, Callan Associates, Inc., conducted a search for a core fixed
income manager and presented for consideration to the PIC (Pension Investment
Committee): 1) ARM Capital Advisors, Inc.; 2) Sirach Capital Management. Inc.; 3) Brinson
Partners, Inc.; 4) Sovran Capital Management Corp.; 5) Wellington Management Company,
LlP; and 6) Seix Investment Advisors. The PIC ranked the firms and after receiving
presentations from the top three, ranked ARM highest. After an October 22, 1997, visit
to ARM's offices to review their facilities, equipment, and personnel, staff was favorably
impressed by ARM's abilities, resources, and past performance. ARM has ranked in the
top 10 percentile of all fixed-income managers during the last 7 years and for the last 7
years in aggregate, ARM has ranked in the top 1 percentile. ARM has managed tax-
exempt funds as a team, with no change in philosophy or process, since inception of the
product in 1988. ARM manages $2.6-billion in tax-exempt funds.
ARM's fees, 0.4% on the 1't $25-million, 0.25% on the next $75-million, and 0.2%
on the balance, are similar to charges by other fixed income managers. This fee is the
lowest one ARM charges. Considering ARM's record of superior performance, staff is
comfortable with these fees. Staff recommends funding ARM's portfolio with $35.million:
1) $15-million from Eickhoff, Pieper & Willoughby, Inc. and 2) $20-million from Shields
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mpf1297
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12/01/97
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Alliimce. Staff will open a safekeeping account at Sun Trust, the City's safekeeping
service, and facilitate the transfer.
In response to a question, Finance Director Margie Simmons said costs will increase
. slightly as lower balances are subject to higher fees.
Trustee Hooper to approve the contract with ARM Capital Advisors, Inc. as a core
fixed income manager, provide for the smooth transition for the addition through the
opening of a safekeeping account at Sun Trust, and that the appropriate officials be
authorized to execute same. The motion was duly seconded and carried unanimously.
ITEM #4 - Other Business - None.
ITEM #5 - Adjournment:
The meeting adjourned at 9:05 a.m.
ATTEST: .'
A~~f.. ~e~l
City Clerk
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12/01/97
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