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HomeMy WebLinkAbout2016 02 09 Consent 300 Unapproved Minutes from the November 19, 2015 Regular Meeting BOARD OF TRUSTEES AGENDA ITEM Informational ITEM 300 Consent X Public Hearings Regular February 9, 2016 Regular Meeting REQUEST: The Office Of The City Clerk Is Requesting The Board Of Trustees To Review And Approve The November 19, 2015 (Rescheduled From November 10, 2015) Board Of Trustees Regular Meeting Minutes ATTACHMENT(S): Unapproved Copy Of The November 19, 2015 (Rescheduled from November 10, 2015) Board Of Trustees Regular Meeting Minutes (5 Pages) H nj CITY OF WINTER SPRINGS, FLORIDA The Regular Meeting of Tuesday, November 19, 2015 (rescheduled from November 10, 2015) of the Board of Trustees was called to Order by Chairperson Barbara Watkins at 6:05 p.m. in the Commission Chambers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Chairperson Barbara Watkins, present Vice- Chairperson Frank Mundo, present Board Member Brian Fricke, present Board Member Geoff Kendrick, present Board Member Robin Paris, present Assistant to the City Clerk Antonia Della Donna, present Assistant to the City Clerk Courtnee Martin, present A brief moment of silence was followed by the Pledge of Allegiance. No Agenda Changes were made. AWARDS AND PRESENTATIONS 100. Not Used INFORMATIONAL 200. Not Used CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING - NOVEMBER 19, 2015 (RESCHEDULED FROM NOVEMBER 10, 2015) PAGE 2 OF 5 I U 1_1 1*3 Chairperson Watkins opened "Public Input ". No one addressed the Board of Trustees. Chairperson Watkins closed "Public Input I � . CONSENT 300. Office Of The City Clerk The Office Of The City Clerk Is Requesting The Board Of Trustees Review And Approve The Tuesday, August 18, 2015 Board Of Trustees Regular Meeting Minutes. REGARDING THE MINUTES FROM THE LAST MEETING, "I MAKE A MOTION TO APPROVE THEM." MOTION BY CHAIRPERSON WATKINS. SECONDED BY VICE-CHAIRPERSON MUNDO. DISCUSSION. VOTE: VICE-CHAIRPERSON MUNDO: AY BOARD MEMBER PARIS: AYE CHAIRPERSON WATKINS: AYE BOARD MEMBER FRICKE: AYE BOARD MEMBER KENDRICK: AYE MOTION CARRIED, Chairperson Watkins opened "Public Input ". No one addressed the Board of Trustees. Chairperson Watkins closed "Public Input y I . 111� 11, ij� I 1�,1111111 1111111� I No Reports were given. 4� -0 7777,, 77 A 7777.77 CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING - NOVEMBER 19, 2015 (RESCHEDULED FROM NOVEMBER 10, 2015) PAGE 3 OF 5 PUBLIC HEARINGS 500. Not Used REGULAR 600. Finance And Administration Services Department The Finance And Administrative Services Department Requesting The Board Of Trustees Receive From The Bogdahn Group The Fourth Quarter Investment Return Report, And To Enter Into Discussion. Mr. Dave West, Senior Consultant, The Bogdahn Group, 4901 Vineland Road, Suite 600, Orlando, Florida: gave an overview of the market over the course of Fourth Quarter noting the significant shift in currency. Continuing, Mr. West discussed credit ratings, market activity, the Euro, and the depreciation of the US Dollar and its impact on the Templeton Global Bond Fund in the portfolio. Mr. West commented, "Obviously, we had to take the snapshot 9/30 for the year. October 31st , [2015], it's as if none of this happened, okay? The Templeton Global Bond Fund snapped back, the Euro is down, to what, a dollar five [$1.05] a dollar six [$1.06], I think, today." Mr. West commented on a positive start to Fiscal Year 2015- 2016 and noted, "Probably looking at a portfolio that's up around five and a half percent (5.5 %) maybe even six percent (6 %) or so." Mr. West referenced Page 18 of the Fourth Quarter Investment Return Report and reviewed the total fund net results for the year and pointed out the projected numbers for five (5) years. Mr. West added, "Bottom line is we don't anticipate the investment shortfall this year in having an impact the City's required contribution." Related to the Total Fund Policy, Mr. West commented, "If you just look at `All Public Plans — Total Funds Median% the median return for the public pensions systems across the country and this database was a minus half a perfect or point four seven (0.47 %). So, since we were able to squeak out a positive, obviously, even though it was a slight positive, that gave us a better peer group ranking. So, we ended up the year in top twenty - seventh (27th) percentile." Mr. West then covered some high points and referenced Page 19 of the Fourth Quarter Investment Return Report. Mr. West noted and discussed several Funds and reviewed their year -end numbers as well as their one (1) year, three (3) year, and five (5) projections accompanied by comments on benchmarks and Investment Grade Bonds. F� fy r k. K f S Mr. West reviewed financial reconciliations as shown on Page 17 of the Fourth Quarter Investment Return Report for several funds pointing out their net transfers, distributions, management fees, and other expenses. With further brief remarks, Mr. West continued on Page 24, emphasized longer term investment efforts, and gave an overview of some charts and graphs depicting peer group rankings. Further discussion. On another note, Mr. West discussed some controversy other agencies have encountered in regards to "fiduciary oversight issues" related to manager performance specifically related to fees. Mr. West stated, "We want to make crystal clear to any public — any person that our fees here are fully transparent. We are going to include these now in every quarterly report." Referencing Page 42 of the Fourth Quarter Investment Return Report, Mr. West added, "We have total transparency in what the fees are there. This is the schedule, on the left, we break down all of the managers' strategies. The far right column is the fee schedule that's employed and, in some cases, this is contractual, obviously, and the — summary terms are there. Our estimated market value as far as the September quarter goes and the estimated annual fee. Most. importantly, I think, if you go to the Total Fund line, we are effectively — if I can call it an operating expense ratio — we are at thirty -nine basis points (0.39) for investment management. That is very, very low. Let there be no question, you know, what the fees are. We are monitoring these fees as part of our fiduciary obligation and this is readily — this information is readily available and this will now be in our quarterly book in case anyone ever needs to reference it." Additional comments. Discussion followed on rebalancing, equity targets, speculation attempting to explain unproductive and weak periods of growth typically seen in the fall, the increase in the federal funds rate, inflation, unemployment rates in the 1990s, the "Tech Wreck ", the economy, and future projections for several funds. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING — NOVEMBER 19, 2015 (RESCHEDULED FROM NOVEMBER 10, 2015) PAGE 5 OF 5 a Vice- Chairperson Frank Mundo inquired if there were any other sectors that the Bogdahn Group would recommend the Board of Trustees to look into. Mr. West explained that there has been some movement into hedge funds but advised that to be more of a late - cycle investment and noted, "We've way outperformed any hedge fund allocation inclusion by being in the staples." Much discussion followed on private equity, asset allocation, and the effects of the growth in the energy sector specifically related to low fuel rates combined with other aspects that could potentially create a credit crisis. Comments followed on the 2014 Actuarial Evaluation. Ms. Casey Howard, Human Resources Specialist, Finance and Administrative Services Department mentioned to the Board Members that they could either formally accept the report at this meeting or wait for Mr. Larry Wilson, A.S.A., Senior Consultant and Actuary, Gabriel, Roeder & Smith Company (GRS) to come and give a presentation. Chairperson Watkins stated, "I would suggest we wait so that it could be explained to US." No obj ections were voiced. In other City business, Chairperson Watkins thanked the Board Members for having her as their Chairperson and appreciated the opportunity as this was her last meeting. Chairperson Watkins opened "Public Input ". No one spoke. Chairperson Watkins closed "Public Input ". Chairperson Watkins adjourned the Regular Meeting at 6:38 p.m. RESPECTFULL Y SUBMITTED: ANTONIA DELLA DONNA ASSISTANT TO THE CITY CLERK NOTE: These Minutes were Approved at the , 2016 Board of Trustees Regular Meeting.