HomeMy WebLinkAboutCOMM - Meeting Minutes - SP-193 - 8-9-2002 - RETIREMENTSoid By IMR Li
a
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:
ATTEST:
1
I ;
SECRETARY
, 2002
4?0
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
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
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
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 Bumette 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
F
1
1
Sold 6v !MR Limited Form 825 EG0102204
I
1
cited factors that are involved and new strategies that have recently been
implemented.
Mr. Thornburgh introduced Nathan Sax and gave a brief overview of his work
experience. Mr. Sax discussed RRZ's objective for fixed income over the next
3 — 5 years, the approach they plan to use and how this approach will be
measured. He then briefly reviewed the risk controls that are in place and the
factors that may affect their overall performance.
Mr. Thornburgh reiterated that the purpose of the meeting was to let the Board
meet their investment professionals and to give the Board a review of RRZ's
investment strategies. He then asked if there were any questions from the Board
members.
Commissioner Burns questioned why there have been "some bumps in the road"
and why the Board should believe this would not occur again. Controller Namie
also asked whether they feel their losses on the equity side can be recouped. Mr.
Thornburgh spoke first stating he was not involved from the beginning, but feels
very confident they have chosen the right process and the right people. Mr.
Sommers then explained that RRZ had underestimated the length and severity in
the downturn of technology stocks when it occurred. He also stated that RRZ has
exceeded its benchmark this past quarter and believes they can sustain this
performance. Mr. Sax stated it would be very difficult to recoup any losses
sustained on the fixed income side.
Commissioner Burns questioned how they will prevent this problem from
reoccurring. Mr. Sommers stated there is no guarantee, but they now have
screens in place designed to monitor their large cap stocks. Mr. Sax mentioned he
feels everyone being located in Pittsburgh will have a positive impact on the
company and their performance. He stated there will be a stabilized performance
and less volatility.
4`2
THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL:
e, 2002
ATTEST:hf
SECRETARY
I
I