HomeMy WebLinkAbout02122015 PP minsSANFORD POLICE OFFICERS' RETIREMENT SYSTEM
PENSION BOARD MEETING MINUTES
Thursday., February 12, 2015 — 10:30 A.M.
1 - Call to Order and Roll Call
The meeting was called to order at 10:40 a.m. by the Chairman, Darrel Presley. The following
members were present: John Dovydaitis, Bill Elliott, and Bill Erwin. Chris Collison was excused.
The following service providers were also in attendance: Scott Christiansen, Plan Counsel, Jana
Hamilton, Investment Manager, and Tom Donegan and Greg McNeillie, Investment Consultants.
Also present was Cindy Lindsay, Finance Director.
2. - Approval of Minutes
A minor correction to page 3, from the minutes of November 6, 2014, was noted by John
Dovydaitis. A motion was then made by John Dovydaitis to approve the minutes with the noted
correction. Seconded by Bill Elliott, the motion carried unanimously.
A motion was made by John Dovydaitis to approve the minutes from the Disability Hearing held
on December 15, 2014. Seconded by Bill Elliott, the motion carried unanimously.
3. Disbursements
A motion was made by Bill Erwin to approve the disbursement report as presented. Seconded
by John Dovydaitis, the motion carried unanimously. (Copyis attached for the record.)
4. Actuarial Valuation Report
Patrick Donlan was unable to attend the meeting today and asked that Scott Christiansen
present the Actuarial Valuation Report as of October 1, 2014. Following Scott's review, and a
brief discussion, a motion was made by Bill Elliott to approve the report as presented.
Seconded by Bill Erwin, the motion carried unanimously.
A discussion then took place regarding the annual Declaration of Returns letter. Following
lengthy input from the investment professionals, attorney, and the Trustees, a motion was
made by John Dovydaitis to submit the annual letter to the Division of Retirement stating that
the total expected annual rate of investment return for the fund for the next year, the next
several years, and the long-term thereafter, shall be 7.75%, net of investment expenses.
Seconded by Bill Erwin, the motion carried unanimously.
S. Investment Manager's Report
Jana Hamilton presented the Garcia Hamilton & Associates investment management report as
of December 31, 2014. Portfolio value was $4,432,076.63 with a yield of 2.1%.
6. Investment Presentations
Patrick Nolan and Bryan Jones of Forest Investment Associates Timber Partners
presented and discussed their Growth & Value Fund product with the Board. After answering
questions from the Trustees, Attorney, and the Investment Consultant, they closed their
presentation.
Barbara Keady and Hunt Stookey of Ceres Partners presented and discussed their Value Add
product with the Board. After answering questions from the Trustees, Attorney, and the
Investment Consultant, they closed their presentation.
Page 2 of 3 Sanford, Police Officers' Retirement System February 12, 2015
A very lengthy discussion took place regarding the products presented and how they will impact
the investment performance if adopted. Following the discussion, a motion was made by John
Dovydaitis to allocate $1.6 million to FIA and another $1.6 million to Ceres upon review and
approval of the contracts by the Pension Board Attorney. Seconded by Bill Elliott, the motion
carried unanimously.
7. - Investment Consultant's Report — Dahab Associates
Tom Donegan & Greg McNeillie reviewed the performance report as of December 31, 2014.
Asset allocation for the period: Large Cap Equities — 37.7%, Mid Cap Equities — 10.1%, Small
Cap Equities — 9.9%, International Equity — 10.1%, Real Estate — 9.9%, Fixed Income — 18.0%
and Cash — 4.3%. Total portfolio value was $40,681,756.
Additional discussion took place regarding current asset allocations and the most effective way
in which to allocate the funding of the new timber and agriculture products that were presented
earlier. Following the discussion, a motion was made by John Dovydaitis to trim the large cap
equities by $3.2 million in order to meet the investment target allocations by taking the
following actions: $1.6 million will be transferred from Sawgrass to Garcia Hamilton while
waiting on the funding request for the new timber investment. An additional $1.6 million will be
transferred from Great Lakes Advisors to the R&D account to fund the new agriculture
investment. Seconded by Bill Elliott, the motion carried unanimously.
A final motion was made by Bill Elliott to transfer 5% of the asset allocation from PIMCO to real
assets classes to satisfy the Investment Policy target allocations. Seconded by John Dovydaitis,
the motion carried unanimously.
B. Attorney's Report
Scott Christiansen began his report by providing a brief legislative update.
Scott continued his report by informing the Trustees that he recently received another doctor's
letter from Paul Kelley, attorney for disability applicant Brandon Worrell. As soon as his
attorney is able to confirm a meeting date, he will schedule the initial hearing and notify
everyone accordingly.
9. Old Business
The Investment Ordinance (No. 4332) was passed and approved by the City Commission, at
second reading, on January 26, 2015.
10. New Business
(a) A motion was made by John Dovydaitis to approve of the DROP entry for Chris Collison,
effective 12/01/14. Seconded by Bill Erwin, the motion carried unanimously.
The Plan Administrator informed the Trustees that the DROP process has also completed for
James McAuliffe. A motion was made by John Dovydaitis to approve of the DROP entry for
James McAuliffe, effective 01/01/15. Seconded by Bill Erwin, the motion carried unanimously.
(b) A motion was made John Dovydaitis to approve of the DROP exit/retirement for Franklin
Hilton, effective 12/31/14. Seconded by Bill Erwin, the motion carried unanimously.
(c) A motion was made John Dovydaitis to approve of the DROP exit/retirement for Edgar
Morales, effective 01/16/15. Seconded by Bill Erwin, the motion carried unanimously.
(d) The service provider review was tabled to the next meeting due to time constraints.
Page 3 of 3 Sanford Police Officers.. Retirement System February 12, 2015
11. Public Comments
There were none.
12. Next Meetina Date
The next regular meeting date was set for Thursday, May 7, 2015 at 10:30 a.m.
13. Adjournment
The meeting ended at 2:10 p.m.
(For the Board)
Date
Issued to:
Issued for:
Amount
11/17/14
Christiansen & Dehner
Legal Services
$3,138.30
11/17/14
State Street
Management Svcs.
$9,270.94
12/01/14
Susy Pita
Administrative Svcs.
$1,000.00
12/11/14
Great Lakes Advisors
Management Svcs.
$9,241.19
12/16/14
Christiansen & Dehner
Legal Services
$2,077.77
01/01/15
Susy Pita
Administrative Svcs.
$1,000.00
01/12/15
Christiansen & Dehner
Legal Services
$2,615.20
01/12/15
Lee Munder Capital
Management Svcs.
$7,747.78
01/13/15
Sawgrass Asset Mgmt.
Management Svcs.
$11,841.00
01/20/15
Garcia Hamilton
Management Svcs.
$2,770.04
01/29/15
State Street
Management Svcs.
$8,917.90
01/30/15
Salem Trust
Custody Svcs.
$5,944.46
02/01/15
Susy Pita
Administrative Svcs.
$1,000.00
02/05/15
Dahab
Consulting Svcs.
$5,085.22
Date
01/29/15
01/29/15
02/06/15
Contribution Refunds: Amount,
None
DROP Distributions: Amount
Franklin Hilton — Part. Distribution $35,000.00
Franklin Hilton — Part. Roll Over $70,000.00
Franklin Hilton — Rem. Bal. Roll Over $48,853.80