HomeMy WebLinkAbout2010 02 23 Regular 601 Policy And Procedures For Rebalancing Date: February 23, 2010
The attached documents were provided to the
Board of Trustees and discussed during Regular
Agenda Item "601" by Mr. Dave West, The
Bogdahn Group at the February 23, 2010
Special Meeting.
[City of Winter Springs letterhead]
DRAFT
February 5, 2010
5th 3rd Bank
Re: Trading Authorization
Dear Kimberly:
This letter shall serve as authorization for 5 3 Bank to take instructions from the Plan Consultant, The Bogdahn
Group ( "Bogdahn") in regards to pension asset rebalancing. Authorization is limited to the movement of assets
within the established investment accounts, pre authorized by the City of Winter Springs on behalf of the Pension
System. Such investment accounts shall include assets custodied by 5 3` and assets custodied by external
investment providers for which the City has pre approved 5 3` for fund transfer activity.
5 3` may treat deposit/withdrawal and wire transfer direction from Bogdahn as if the request came directly from
the City of Winter Springs. 5 3 shall not be liable for actions preformed by Bogdahn on behalf of the City of
Winter Springs Pension System.
Sincerely,
Kevin Smith
City of Winter Springs
[City of Winter Springs letterhead]
DRAFT
February 18, 2010
Galliard Capital Management
Carrie Callahan
800 LaSalle Ave Suite 2060
Minneapolis, MN 55402
Re: Consultant Authorization
Dear Carrie:
This letter shall serve as authorization for Galliard Capital Management ( "manager ") to take instructions from the
Plan Consultant, The Bogdahn Group ("Bogdahn") in regards to deposit notification, fund purchase requests,
withdrawal and transfer requests for the City of Winter Springs Pension System. Authorization is limited to
direction pertaining to the movement of assets within the established investment account(s) managed by the manager
on behalf of the Plan, and the Plans master custodian 5 th 3 rd Bank. The manager is further authorized to accept wire
and transfer instructions from 5 3 Bank on behalf of the City of Winter Springs Pension System.
Custodian contact information as follows:
Kimberly Kutlenios
Vice President & Senior Relationship Manager
Fifth Third Institutional Services
200 East Robinson Street
MD MBLE9B
Orlando, FL 32801
Tel: (407) 999 -3027
Fax: (321) 445 -3047
kimberly.kutlenios@53.com
The manager may treat direction as defined in this communication from Bogdahn as if the request came directly
from the City of Winter Springs. The manager shall not be liable for actions preformed by Bogdahn on behalf of the
City of Winter Springs Pension System.
Sincerely,
Kevin Smith
City of Winter Springs
`j BTHE
OGDAHN
GRoup
simplifying your investment and fiduciary decisions
MEMORANDUM
TO:
Kevin Smith
CC:
Maria Fair, Chairperson
FROM:
Dave West
RE:
Winter Springs Pension:
Proposed Changes to Rebalancing Policies and Procedures
DATE:
February 18, 2010
Purpose:
The proposed procedures are intended to streamline standing policies to provide for efficient
and timely execution of pension investment rebalancing activity as required in the normal
course of business, as recommended by the Investment Consultant and approved by the
Pension Advisory Board.
Process:
The Plan Investment Consultant shall be granted limited authority to provide direction to the
Plan's custodian and established investment managers on matters concerning investment
program rebalancing. The Plan's custodian and investment managers shall be directed to
implement such instructions from the Plan's consultant as if the direction was coming
directly from the City. Authorization is limited to the direction of the movement of assets
within the established investment accounts pre authorized by the City of Winter Springs on
behalf of the Pension Plan. Such investment accounts shall include assets custodied by the
Plan's master custodian, and assets custodied by external investment providers for which
the City has pre approved the master custodian for fund transfer activity. Such
authorization shall be maintained in the form required by the participating vendors.
Rebalancing Procedure:
• The City shall provide standing authorization communication as required by the Plan
Master Custodian, and approved investment management firms /products,
authorizing said parties to take action on direction(s) from the Plan's consultant in
the movement of funds.
• Consultant shall provide rebalancing recommendations consistent with Investment
Policy Statement requirements to the Advisory Board for consideration (current).
• The Pension Advisory Board shall be required to approve such recommendations
prior to implementation (current).
• The consultant shall direct the implementation of any such Advisory Board direction,
communicating directly with the participating parties; said parties shall accept the
direction as if it were coming from the City.
• A copy of communications on such matters shall go to the Office of the Pension
Administrator (currently City Manager), the Advisory Board Chairperson, and other
persons as required.
• Implementation shall be completed in a timely manner consistent with the liquidity
confines of the Plan investments.
4901 Vineland Road. * Suite 600 * Orlando, Florida 32811
Telephone (863) 293-8289 + Facsimile (863 292-8717)
www.bogdahneonsulting.com