07/15/2004
TRUSTEES OF THE EMPLOYEES' PENSION FUND SPECIAL MEETING
CITY OF CLEARWATER
July 15, 2004
Present: Brian Aungst Chair
Hoyt Hamilton Trustee
Frank Hibbard Trustee
William C. Jonson Trustee
Carlen Petersen Trustee
Also Present: William B. Horne II City Manager
Garry Brumback Assistant City Manager
Ralph Stone Assistant City Manager
Pamela K. Akin City Attorney
Cyndie Goudeau City Clerk
Brenda Moses Board Reporter
The Chair called the meeting to order at 8:59 p.m. at City Hall.
To provide continuity for research, items are in agenda order although not necessarily
discussed in that order.
Approve the contract with Western Asset Management Company as a fixed income manager
and that the appropriate officials be authorized to execute the same.
This item was continued from the meeting of July 12, 2004.
At that meeting, the Trustees approved the termination of Vanderbilt Capital Advisors as
a fixed income manager. Last summer, when the Plan conducted a search for a fixed income
manager, the top three ranked firms were:
Dodge & Cox - Funded February 1, 2004, with $75 million
Western Asset Management Company (WAMCO)
PIMCO
Callan has updated their search information and WAMCO still appears very favorable.
WAMCO finished a very close second to Dodge & Cox in last year’s search.
Staff has updated its research and noticed a number of plan sponsors have been moving
assets to WAMCO because of problems with other fixed income managers. WAMCO has
informed staff they are able to accept additional assets without difficulty. The minimum funding
for WAMCO is $75 million. Funding will come from the termination of Vanderbilt and
rebalancing the portfolio. WAMCO charges a fee of 0.30 of 1% for the first $100 million and
0.15 of 1% on all amounts over $100 million. This rate is competitive other money managers
charge for this type of product.
Cash and Investments Manager Steve Moskun said this morning the Pension Advisory
Committee recommended giving the full $75 million to WAMCO.
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Trustee Hamilton moved to approve the contract with Western Asset Management
Company as a fixed income manager and that the appropriate officials be authorized to execute
the same. The motion was duly seconded and carried unanimously.
The meeting adjourned at 9:00 p.m.
Chair
Employees Pension Fund
Attest:
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