HomeMy WebLinkAboutCOMM - Meeting Minutes - SP-192 - 7-3-2002 - RETIREMENT825 E00102204
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promising candidates. He said that RRZ is trying to respond to their clients'
feedback. Mr. Burnette noted that the past 18 months, which is shown by the
Russell 1000 Growth Manager, demonstrated that the largest cap stocks have
trailed the market.
Mr. Burnette feels that it is only a matter of time before corporate profits will take
a stand. He stated he does not believe that the economy is as bad as some may
believe. He feels the economy is on an upward trend, but they are still not able to
determine whether or not they will regain their previous numbers. He then stated
that corporate profits will be the last item to emerge from the market. He is not
pessimistic in regards to long-term results, but he does feel that we are currently
in a recession. He noted that a normal recession lasts for about 2 % to 3 years,
which is about where RRZ is right now. He does not believe this recession will
be a severe one, stating it is showing a relatively normal, consistent economic
pattern. Mr. Burnette then pointed out that the fixed income was up for the
quarter in question. He then ended by stating that RRZ is very committed to
getting the organization in line with what is going on in the market place. RRZ is
making sure that they are properly staffed throughout the organization, from the
top down. He feels the situation they are in has to do primarily with the market's
cycles and trends, but he is sure that over time this will correct and resolve itself.
Adjournment
There being no further business, Chairman Bevec declared the meeting
adjourned at approximately 11:45 p.m.
THE FOLLOWINGMINUTESSUBMITTED FOR APPROVAL:
2002
ATTEST:
SECRETARY
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Minute No. SP-192
Washington County Retirement Board
Washington, Pa., July 3, 2002
The special meeting of the Washington County Retirement Board was
held at approximately 9:00 a.m. on Wednesday, July 3, 2002, in the 7th Floor
Conference Room, Courthouse Square Office Building, Washington,
Pennsylvania, with the following members being present: Commissioners John P
Bevec and J. Bracken Burns, Sr., Treasurer Francis King and Controller Mike
Namie. Absent being: Diana L. Irey. Also being present: Catherine E. Kresh,
Administrator/Chief Clerk; JoAnn Metz, Executive Secretary of Commissioner
Irey; Roger Metcalfe, Budget Director; Angela Lemmon, Secretary; Frank
Domeisen and Bill Marris of Yanni Partners; Linda Metz, Observer -Reporter.
Frank Domeisen of Yanni Partners, the County's investment fund
monitors, began the meeting by updating the Board members on RRZ's
performance. In the first month of implementing performance strategy and staff
changes, RRZ has shown its first equity fund improvement in the past five
quarters. The changes implemented in May, reflect RRZ's decision to return its
focus to a more conservative, long-term growth approach. According to Mr.
Domeisen, RRZ was ahead of its benchmark. Mr. Domeisen stated that if RRZ
continues this progress, losses could be recouped within a year. Even with this in
mind, Mr. Domeisen questioned whether RRZ could sustain this growth in the
long term. As such, he was unwilling to make a recommendation as to whether
the County should retain RRZ for equity investments. In regards to RRZ's
changes to its fixed -income strategy, Mr. Domeisen does not feel that the changes
made will be effective. He pointed out that fixed income is much more difficult
to recoup than equity. As a result, Mr. Domeisen recommended that the Board
consider its alternatives, including the possibility of looking into another
investment manager for the County's fixed -asset portfolio.
After Yanni Partners' presentation of RRZ, the Board members openly
discussed their views on the situation. The Board asked that Yanni Partners
present any updated information at the next Retirement Board meeting on
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August 15, 2002. The Board members also decided to meet with Frank Burnette,
of RRZ, prior to the next Retirement Board meeting.
THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL:
1 4 P; v.ST 8 , 2002
ATTEST:
SECRETARY
1
Minute No. SP-193
Washington County Retirement Board
Washington, Pa., August 9, 2002
The special meeting of the Washington County Retirement Board was
held at approximately 1:15 p.m. on Friday, August 9, 2002, in the 7th Floor
Conference Room, Courthouse Square Office Building, Washington,
Pennsylvania, with the following members being present: Commissioners John P.
Bevec, Diana L. Irey and J. Bracken Burns, Sr., Treasurer Francis King and
Controller Mike Namie. Also being present: Angela Lemmon, Secretary; Frank
Domeisen, Yanni Partners; John Thornburgh, RRZ; Nathan Sax, RRZ; Bill
Vescio, RRZ; Brian Sommers, RRZ; Frank Burnette, RRZ.
John Thornburgh of RRZ began by explaining that the purpose of the meeting j
was to give an understanding and update on their organization from their
investment professionals, the process they employ to make investment decisions
and their current views on the market place. Mr. Thornburgh stated that he
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p wanted to give the Board a level of comfort that RRZ is committed to
performance and the Board's best interests. At that time he distributed
information to each of the Board members. Mr. Thornburgh then gave a brief
overview of his background. He also noted that the strategic updates of the firm
are adapting and adjusting to today's market. They have a structured, disciplined
process in place which is driven by the Investment Policy Committee.
Brian Sommers discussed the overall manner in which the "Investment Policy
Committee" works. The "IPC" employs an approach that identifies macro-
economic trends and major market themes. Its primary purpose is to conduct an
analysis of the overall economic climate and then to determine the general themes F
that go into the construction of the portfolio. The "IPC" determines which factors
have the largest impact on the market and the market's future direction. The
committee makes a determination as to the outlook of these factors and how they
will effect the market in general.
Frank Burnette stressed that the process used by RRZ has been in place since
1992. Mr. Sommers then described the process in more detail to the Board. He
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