HomeMy WebLinkAboutCOMM - Meeting Minutes - 170 - 1-14-1998 - RETIREMENT114
Minute No. 170
Washington County Retirement Board
Washington, Pa., January 14, 1998
A special meeting of the Washington County Retirement Board was held at
approximately 1:30 p.m. on Wednesday, January 14, 1998, in the Seventh Floor
Conference Room, Courthouse Square Office Building, Washington, Pennsylvania,
with the following members being present: Commissioners Diana L. Irey, J. Bracken
Burns, Sr., Treasurer Francis King, and Controller Paul Belcastro. Absent being
Commissioner Joseph A. Ford, Sr. Also being present: Michelle Miller, Chief Clerk;
Roger Metcalfe, Budget Director; and Frank Domiesen, Yanni-Bilkey.
DISCUSSION ON RFPs FOR SELECTION OF MONEY MANAGERS
Commissioner Irey led the discussion by noting that she thought it would have
been a more efficient process for Yanni-Bilkey to initially review the RFPs then submit
the final recommendations to the County Retirement Board. Commissioner Burns
stated that the Retirement Board instead agreed to reduce the number of RFPs
received to seven names and then submit said names to Yanni-Bilkey for further
review.
Mr. Belcastro noted that it would be appropriate for PNC Bank to remain as
Custodian when the additional money managers are selected.
Discussions followed regarding narrowing the list of RFP's received for the
Small Cap and International Style managers to seven. Following the discussions, the
following companies were selected for submission to Yanni-Bilkey for further review:
INTERNATIONAL STYLE
1. PNC Bank
2. Federated Investors
3. Templeton/Franklin (Springhouse Group, Pittsburgh)
4. Invesco (WheatFirst, Pittsburgh)
Sold By IMR Limited Form 825 E417350
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5. Pinnacle Association
6. American Funds
7. Mass Mutual
SMALL CAP STYLE
1. PNC Bank
2. Federated Investors
3. Addison Capital
4. Emerald Advisors
5. Vantage Global
6. Conseco Company
Mr. Domiesen discussed the following measurement standards with the
Retirement Board that would be used to evaluate those RFPs submitted to Yanni-
Bilkey.
1. Performance history of at least five (5) years.
2. Minimum assets of $250,000 million (firm wide).
3. Portfolio manager with at least three (3) years of experience for tenure in
relationship and continuity of process.
4. Performance standards over the last five years on the absolute basis
• small cap - should exceed Russell 2000 by 100 basis points
• international - should exceed Eafe Index by 100 basis points for a five
year period.
5. Relative performance - should be in the top half of the proper universe
over a five year period.
6. Risk - should be measured in two ways:
• Absolute basis - should exceed down market of index (benchmark)
• Relative basis - should be in bottom half of the universe of standard
deviation.
7. Style analysis
• international - want a manager with no high level of emerging
markets
• small cap - determine their style.
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Mr. Domiesen told that the next step in the selection process is for Yanni-Bilkey
prepare a quality report that addresses the items used in the ranking system.
The Chief Clerk was directed to set up another special meeting of the
Retirement Board during the week of February 23, 1998 for the purpose of meeting
with Mr. Domiesen. Subsequent to this meeting, the Retirement Board will interview
the final candidates.
There being no further business, Chairman Irey declared the meeting adjourned
at approximately 2:30 p.m.
THE FOREGOING MINUTES SUBMITTED FOR APPROVAL:
1998
SECRETARY
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