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Home My WebLink AboutCOMM - Meeting Minutes - 194 - 8-15-2002 - RETIREMENTSold By IMR ! invited Form 825 EN102204 1 F Minute No. 194 Washington County Retirement Board Washington, Pa., August 15, 2002 The quarterly meeting of the Washington County Retirement Board was held at approximately 11:05 a.m. on Thursday, August 15, 2002, in the Public Meeting 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: Catherine E. Kresh, Administrator/Chief Clerk; Randy Vankirk, Deputy Controller; Roger Metcalfe, Budget Director; Angela Lemmon, Secretary; Frank Domeisen, Yanni Partners; Bill Marra, Yanni Partners; Norm Allan, CS McKee; John Thornburgh, RRZ Investment Management; Brian Sommers, RRZ Investment Management; Nathan Sax, RRZ Investment Management; Frank Burnette, RRZ Investment Management; Linda Metz, Observer -Reporter; Jim Jefferson, WJPA; Stacy Wolford, Valley Independent; Chris Haines, Tribune Review. Approval of Minutes Chairman Bevec entertained a motion to approve Minute No. 191 dated May 16, 2002. Moved by Mrs. Irey, seconded by Mr. Burns, that Minute No. 191 be approved as written. Roll call vote taken: Mr. Namie - Yes; Mr. King - Yes; Mrs. Irey - Yes; Mr. Burns - Yes; Mr. Bevec - Yes. Motion carried unanimously. Chairman Bevec entertained a motion to approve Minute No. SP-192 dated July 3, 2002. Moved by Mr. King, seconded by Mr. Namie, that Minute No. SP-192 be approved as written. Roll call vote taken: Mr. Namie - Yes; Mr. King - Yes; Mrs. Irey - Yes; 11 Mr. Bums - Yes; Mr. Bevec - Yes. Motion carried unanimously. Chairman Bevec entertained a motion to approve Minute No. SP-193 dated August 9, 2002. C Moved by Mrs. Irey, seconded by Mr. Bums, that Minute No. SP- 193 be approved as written. Roll call vote taken: Mr. Narnie - Yes; Mr. King - Yes; Mrs. Irey - Yes; Mr. Bums - Yes; Mr. Bevec - Yes. Motion carried unanimously. Treasurer's Report RETIREMENT ALLOWANCE REPORT Mqy, 2002 Bank Balance as of May 1, 2002 $106,679.03 Deposits to Checking Account $171,940.40 Transfers from Investment Accounts $226,363.60 Less: Cancelled Checks $ 94,913.02 Less: Transfers to Investment Accounts $171,940.40 Less: ACH Debits $ 85,930.86 Bank Balance as of May 31, 2002 $152,198.75 Less: Outstanding Checks $ 71,145.76 Less: Retirement Check Run May 31, 2002 $81,052.99 Reconciled Bank Balance as of May 31, 2002 $ -0- June,2002 Bank Balance as of June 1, 2002 $152,198.75 Deposits to Checking Account $170,397.89 Transfers from Investment Accounts $292,023.17 Less: Cancelled Checks $192,817.07 Less: Transfers to Investment Accounts $170,397.89 Less: ACH Debits $ 74,743.97 Bank Balance as of June 30, 2002 $176,660.88 I I Sold By IMR Limited Form 825 E00102204 Less: Outstanding Checks $ 98,356.07 Less: Retirement Check Run June 30, 2002 $ 78,304.81 Reconciled Balance as of June 30, 2002 $ -0- July, 2002 No report available at the time of the meeting. Moved by Mr. King that the Treasurer's Report be approved, seconded by Mr. Burns. Roll call vote taken: Mr. Namie - Yes; Mr. King - Yes; Mrs. Irey - Yes; Mr. Burns - Yes; Mr. Bevec - Yes. Motion carried unanimously. Requisitions Moved by Mr. Namie, seconded by Mrs. Irey, that the following Requisitions be approved: May, 2002 Distributions Check No. Payee Amount 2390 PFS Shareholder Services as trustee I Of IRA of Lillian P. Paraska $ 38,441.30 2391 Donaldson, Lufkin & Jenrette Secrutities Corp as trustee of IRA of Mary Ann DiBacco $ 19,958.71 2392 Edward Jones Investments as trustee of IRA of Lisa F. Carpenter Acct# 347-92146 $ 875.02 2393 Advantus Funds FBO: Emily L. Dimperio �i Account# 0000122879-RO $ 1,974.27 2394 Northwest Savings Bank as trustee s� of IRA of Linda H. Engel $ 3,530.86 2395 Debra L. Humphrey $ 553.57 2396 Trustee of VALIC FBO: Dannielle L. Gardner $ 824.94 2397 Dollar Bank as trustee of IRA of Dean A. Richmond 2398 Lisa K. McConnell 2399 Bart J. Ripley 2400 Carol Sue Thompson 2401 Estate of Richard Mull Transfer: PNC Bank 2372 Washington Co. Disbursement Transfer: Washington Co. Retirement Acct. June, 2002 Distributions Check No. Payee 2403 Robert J. Beckus 2404 Michael J. Hagerman 2405 Eric G. McManus 2406 The Estate of Eugene B. Lockett 2407 Sun America Trust Company FBO Lois J. Mori A/C# 9274074-7 ss#195548713 2408 Nakia Carter Transfer: PNC Bank 2409 Washington Co. Disbursement Transfer: Washington Co. Retirement Acct. July, 2002 Distributions Check No. PUee 2423 Vivian O. Horner 2424 Fiduciary Trust Co, NH Custodian IRA- Rollover of Vivian O. Horner 2413 Allamerica Financial Life and Annuity Co. as trustee of IRA of Mary L. Helicke $ 1,265.60 $ 750.28 $ 212.16 $ 200.08 $ 412.52 $ 6,326.78 $ 2,070.55 $148,966.96 $226,363.60 Amount $ 8,371.77 $ 454.44 $ 20,995.67 $ 48,209.84 $ 1,511.26 $ 299.99 $ 25.527.78 $ 31,873.63 $154,778.79 $292,023.17 Amount $ 8,800.00 $ 23,840.72 1 0 1 E #PQ72844 $ 27,628.94 2414 PFS Investments, Inc as Successor Custodian of IRA of James M. Barnhart Acct#204363704 $ 5,500.21 2415 Daniel L. Chunko $ 534.86 J 2416 Slovenian Savings & Loan of Cbg. as trustee of IRA of Carl Fetchko, Jr. $ 10,016.08 2417 Adrienne L. Harney $ 3,148.33 2418 Joyce E. Rotheram $ 16,826.15 2419 Pamela L. Smith $ 2,072.47 2420 Carl H. Stopperich $ 3,870.75 2421 Debra M. Ullom $ 16,145.67 2422 Derrek A. White $ 266.54 Transfer: PNC Bank $ 18,861.78 2410 Washington Co. Disbursement $ 39,568.23 Transfer: Washington Co. Retirement Acct. $155,743.28 $332,824.01 Roll call vote taken: Mr. Namie - Yes; Mr. King - Yes; Mrs. Irey - Yes; Mr. Burns - Yes; Mr. Bevec - Yes. Motioned carried unanimously. Old Business None New Business None CS McKee Norm Allan began by stating that the market is extremely volatile right now and CS McKee is not very optimistic they will see a strong or immediate rebound. The performance pattern showed that CS McKee was leading for the quarter, the year to date period and the one year period in total performance. CS McKee did i underperform in fixed income for the quarter, which they are taking steps to u correct. For the value equity segment, performance was negative but it did outperform the benchmark established by the Russell 1000 Index. Mr. Allan urged the Board to schedule a meeting with their actuary to discuss any appropriations to the fund for 2002 before getting into the budgeting process. He restated that the market is still down and it will be awhile before things start to even out, especially with all the uncertainty. RRZ Investment John Thornburgh, President and CEO, began by giving a brief overview of his background. He stated the changes made up to this point are starting to show in the numbers and reflect those investments. Mr. Thornburgh asked if the Board had any questions at this time. Mr. King asked if RRZ had instituted a search for a Chief Investment Officer. Mr. Thornburgh stated that they have begun the search, but no final decisions have been made. Mrs. Irey noted that CS McKee went through a similar event in the past and the Board was asked to be patient, which they were and it eventually paid off. Brian Sommers, Director of Equity Investments, began by going over some notes on the economy. He stated at the beginning of the year there was strong growth that was due primarily to companies restocking their inventories, not from changes made. He believes there is a risk of the U.S. economy sliding back into a recession as a result of the falling dollar and a major slow down in consumer spending, but does not think it will actually happen. He feels consumer spending remains strong despite high debt levels, the falling market and terrorism threats. According to the Russell 1000 Growth Index, RRZ did perform very well while the market was down. Mr. Sommers feels that the economy will continue to improve, but only incrementally. Nathan Sax, Director of Fixed Income, gave a brief summary of how the market looks for fixed income. He noted that treasuries had a great quarter, outperforming corporate bonds due to investors choosing very high quality securities. Mr. Sax feels that the economy activity in the U.S. looks weaker with capital markets becoming less attractive. He stated that lower yields, a weaker dollar and accounting scandals have done a lot of damage for the markets' 1 1 Sold By IMR Limited Form 825 E1,01,02204 E 1 1 credibility. He believes that long term there will be more reliable and conservative accounting taking place, some of it forced while some voluntary. Investment Managers 4th Quarter 2001 Portfolio Presentations Yanni Partners Investment Managers Frank Domeisen began by stated that he will discuss the diversification of small cap, including small cap value, and give the quarterly report. Mr. Domeisen told the Board he will provide and discuss the information to determine what the most beneficial plan is for the County. Mrs. Irey suggested calling a special meeting with Yanni Partners to do such. Mr. Domeisen then discussed the reports noting that large cap, small cap, international and fixed income were all on target. He mentioned that both CS McKee and RRZ were pretty much right on their bennchmark. He stated that the total portfolio was down 4.6% while the index was down 5.1%. He also informed the board that on an absolute basis it was ahead of the benchmark and on a relative basis it had outperformed the majority of managers for both the quarter and year to date. Mr. Domeisen then discussed the individual components. He stated that CS McKee, the Equity Manager, was ahead of the benchmark for the quarter and year to date. RRZ for the quarter, measured against the Russell 1000 Growth Index, was ahead of the benchmark in performance for the quarter. The combined portfolio was ahead the S & P Index and the Aggregate. Emerald missed the benchmark for the year, due to its growth orientation. Mr. Bevec interjected stating that it was recorded in the last meeting minutes held with Yanni Partners that Mr. Domeisen would present the Board with recommendations for small cap value managers, prior to the next quarterly meeting. Mr. Domeisen stated he did have the information with him. It was decided that Yanni Partners would meet again with the Board to discuss recommendations for small cap managers and to discuss implementation and strategies in detail as soon as the, Board receives the actuary report. Mrs. Irey commented that all of the managers should be notified of when that meeting will be held. Mr. Domeisen passed out the information on recommendations for small cap managers for the Board to review prior to the next meeting. Adjournment There being no further business, Chairman Bevec declared the meeting adjourned at approximately 12:20 p.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: 2002 ATTEST: SECRETARY 1 n 1