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HomeMy WebLinkAbout2003 07 29 Board of Trustees Regular Minutes CITY OF WINTER SPRINGS MINUTES BOARD OF TRUSTEES - PENSION PLAN REGULAR MEETING JULY 29, 2003 I. CALL TO ORDER The Board of Trustees - Pension Plan Regular Meeting was called to order by Chairman Robert Nippes on Tuesday, July 29, 2003 at 7:30 p.m. in the Commission Chan1bers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Chairman Robert Nippes, present Vice Chairman Vernon Rozelle, present Board Member Vincent Giannoni, arrived at 7:36 p.m. Board Member Tim Pesut, present Board Member Mark Queen, present II. CONSENT CONSENT A. Approval Of The January 28, 2003 Regular Meeting Minutes. "MOTION TO APPROVE THEM [MINUTES] AS WRITTEN." MOTION BY VICE CHAIRMAN ROZELLE. SECONDED BY BOARD MEMBER QUEEN. DISCUSSION. WITH CONSENSUS OF THE BOARD, THE MOTION WAS APPROVED. MOTION CARRIED. III. REGULAR AGENDA REGULAR B. Review Of Trustco Capital Management Financial Statements With Representative Mr. Tim Nash. Mr. Blake My ton, Investment Officer, CCM, Trusco Capital Management, 300 South Orange Avenue, Suite 1600, Orlando, Florida: introduced himself to the Board, then summarized the performance of the City's portfolio over the last quarter. Board Member Vincent Giannoni arrived at 7:36 p.m. Discussion. CITY OF WINTER SPRINGS MINUTES BOARD OF TRUSTEES - PENSION PLAN REGULAR MEETING - JULY 29, 2003 PAGE20F3 Board Member Mark Queen asked, "Isn't our portfolio somehow supposed to mirror the S and P [Standard and Poor]?" Mr. Myton advised, "We try to beat it, we do not try to just mirror it, but yes." Board Member Queen stated, "But you have here - we still are not performing as well as what the S and P [Standard and Poor] did." Mr. Myton said, "For the six (6) months correct. But if we look at the longer term numbers, the three (3) and the five (5) year, and again I would not argue that that is a more relevant time period to see a full market cycle, not just one (1) quarter or two (2) quarters. Where our particular earnings quality driven process was out of favor, the market did not favor that for the last two (2) quarters, really the last three (3) quarters, but I think as we have seen over a longer time period that the process does work and it has done a very good job of protecting us on the down side." Board Member Queen asked the Board, "Does that bother anybody besides me?" Vice Chairman Vernon Rozelle said, "That is a good point. I am a little concerned about the equity. The fact that - not even being able to match what the Sand P [Standard and Poor] is doing." Discussion. Board Member Queen said, "Well I agree. Over the last 115 months we can not complain a lot. We can only go back and say look how good we did for so long. That is why I say I am just concerned about it." Mr. Myton responded, "Again we have to live with this under-performance, and it will start to creep into the longer time periods and ultimately we will be graded against it. This next quarter and the quarter after that, if things start to deteriorate, that three (3) year, that five (5) year number, that - market cycle is going to start to deteriorate as well." After discussion, Mr. Myton advised the Board that, "We do not think this is going to continue going forward." Board Member Queen asked, "You do not think what is going to continue?" Mr. Myton said, "The money, the investor confidence flowing into these lower quality earnings and these smaller names. We do not think over time that that is going to continue. We think they will come back to the more stable, stronger, more financially sound companies." Mr. Myton added, "Our philosophy and our catalyst is this economic recovery has not changed in a year and a half, we have just gotten prolonged. We really think the key to economic recovery is going to be business spending." Board Member Queen stated, "I am concerned about the growth and the top of the line - I want to see some revenue growth from some of these companies. I am not overly concerned, but I want you to know that we are somewhat interested or concerned - we would not want the pattern to continue to be - continue the difference between what the Dow is doing and what our portfolio is doing to that spread to increase." Discussion. CITY OF WINTER SPRINGS MINUTES BOARD OF TRUSTEES - PENSION PLAN REGULAR MEETING - JULY 29, 2003 PAGE30F3 IV. FUTURE AGENDA ITEMS This Agenda Item was not discussed. V. REPORTS Vice Chairman Rozelle asked, "Are we supposed to be reviewing some sort of contract or something that has been being processed, we discussed it two (2) Meetings ago in January?" Ms. Louise Frangoul, Director, Finance Department said, "The Pension documents - we still do not have legal plans yet. The Attorneys are working through some additional language in the plan and the Actuaries are coming up with different scenarios. I am hoping maybe in the next couple of months they will actually get finalized. " VI. ADJOURNMENT "I MOVE THAT WE ADJOURN." MOTION BY BOARD MEMBER QUEEN. SECONDED. DISCUSSION. WITH CONSENSUS OF THE BOARD, THE MOTION WAS APPROVED. MOTION CARRIED. Chairman Nippes adjourned the Meeting at 8:10 p.m. RESPECTFULLY SUBMITTED: HOLLY N. PIERSTORFF, ASSISTANT TO THE CITY CLERK NOTE: These Minutes were approved at the Mav 26 .2004 Board of Trustees (Pension Plan) Meeting.