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HomeMy WebLinkAboutCOMM - Meeting Minutes - 210 - 8-25-2005 - RETIREMENT1213 Yanni Partners — Jim Gnecco, Sr. Consultant Total portfolio for the quarter had a negative return of .5%. Even though it is a negative return, it outperformed the target market index of -1.6%. TMI is the return that we would have gotten if each one of the managers had performed right at benchmark. As a group, they have outperformed that. They added value relative to the benchmark. This is shown at the one year return of 6.2% versus the TMI at 5%. At the three year return, it was slightly ahead and at the five and seven year returns, it is trailing a bit. The changes the Board have made over recent years have worked. The 6.2% return does not match the 7.5% return that we are looking for, but it is ahead of the TMI. Absolute return or relative return is one issue; risk is another issue. We want to be in the northwest quadrant and that is exactly where we stand. We are to the left of the TMI which means less risk. On a reward basis, we are positioned well. For the quarter, we are around the 25th percentile in the universe; the one year period, we are around 35th percentile; two year period, just above medium; three and four year period, around the 30th percentile. We are well -positioned relative to other funds. Ark had a relatively weak quarter, down 4.5% versus the index at -4.1 %. On a one year basis, they are ahead 2.4% versus 1.2%. On the small cap side, Evergreen had a very good quarter with a positive return. The benchmark was actually -4% and they had a positive return. Emerald had previously been a problem last year with negative returns. It had a negative return again for the quarter at -4.8% but that was well ahead of benchmark. It is still lagging for the one year period. Looking at Emerald in 1999, they had a great start. Since then they have done well up until 2004. Mr. King asked what may have caused this downfall. Mr. Gneccho answered that they were in high beta stocks and the earnings just did not do well. The meeting was adjourned at approximately 12:10. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: 2005 ATTEST: 1 12 4 Minute No. 210 Washington County Retirement Board Washington, PA August 25, 2005 The quarterly meeting of the Washington County Retirement Board was held at approximately 11:06 a.m. on Thursday, August 25, 2005 in the Public Meeting Room with the following members being present: Commissioners Larry Maggi, J. Bracken Burns, Sr., and Diana L. Irey; Treasurer Francis King; and Controller Mike Namie. Also present: Director of Finance Roger Metcalfe; Chief Clerk Mary Helicke; Secretary Joyce Thornburg; Audit Manager Kathy Demarest; Solicitor Mary Lyn Drewitz; Observer - Reporter representative Barbara Miller; and concerned citizens Abe Nasim, Bob Lusk, Harry Sabatasse, John Adams, and Phil Ames. Approval of Minutes Mr. Burns entertained a motion to approve Minute No. 209 dated May 12, 2005. Motion was moved by Mr. Maggi and seconded by Mrs. Irey that the above mentioned minutes be approved as written. No discussion followed. Those in favor signified by saying aye. Motion carried unanimously. Treasurer's Report Mr. King stated that from April 2005 through July 2005 the bank balance was reconciled to zero. It was moved by Mr. King and seconded by Mr. Maggi that the report be approved. No discussion followed. Those in favor signified by saying aye. Motion carried unanimously. Retirement Allowance Report Bank Balance as of April 1, 2005 Add: Deposits to Checking Account Add: Transfers from Investment Accounts Less: Cancelled Checks Less: Transfers to Investment Account Less: ACH Debits Bank Balance as of April 30, 2005 Add: Bank Error Less: Outstanding Checks Less: Deposit In Transit Less: Stale Dated Checks Less: Retirement Check Run April 30, 2005 Bank Balance as of April 30, 2005 $141,716.74 186,064.90 408,001.91 (141,160.76) (93,522.79) ($126,719.70) $374,380.30 655.86 (201,289.87) (92,542.11) (100.96) ($81,103.22) 1 1 121 1 1 Bank Balance as of May 1, 2005 $374,380.30 Add: Deposits to Checking Account 272,278.36 Add: Transfers from Investment Accounts 333,157.13 Less: Cancelled Checks (248,022.27) Less: Transfers to Investment Accounts (275,124.35) Less: ACH Debits ($136,033.20) Bank Balance as of May 31, 2005 $320,635.97 Less: Deposit In Transit (89,581.02) Less: Outstanding Checks (155,622.52) Less: Stale Dated Checks (100.96) Less: Retirement Check Run May 31, 2005 ($75,331.47) Reconciled Balance as of May 31, 2005�0- j Bank Balance as of June 1, 2005 $320,635.97 Add: Deposits to Checking Account 202,456.65 Add: Transfers from Investment Accounts 538,786.66 Less: Cancelled Checks (216,048.00) Less: Transfers to Investment Accounts (292,037.67) Less: ACH Debits ($32,147.07) Bank Balance as of June 30, 2005 $521,646.54 Less: ACH Debit (118,124.63) Less: Outstanding Checks (324,578.36) Less: Stale Dated Checks (100.96) Less: Retirement Check Run June 30, 2005 ($78,842.59) Reconciled Balance as of June 30, 2005 $ 0- Bank Balance as of July 1, 2005 $521,646.54 Add: Deposits to Checking Account 374,385.26 Add: Transfers from Investment Accounts 314,447.22 Less: Cancelled Checks (507,202.09) Less: Transfers to Investment Accounts (374,385.26) Less: ACH Debits (34,372.28) Bank Balance as of July 31, 2005 $294,519.39 Less: Deposit In Transit (120,281.08) Less: Outstanding Checks (98,068.59) Less: Stale Dated Checks (100.96) Less: Retirement Check Run July 31, 2005 (76,068.76) Reconciled Balance as of July 31, 2005�0- 26 Requisitions Mr. Namie stated that requisitions for the months of May, June, July, and August 2005 totaled $1,559,174.75. It was moved by Mr. Namie and seconded by Mrs. Irey that the requisitions be approved. No discussion followed. Those in favor signified by saying aye. Motion carried unanimously. Mav 2005 Distributions Check Payee Amou"t 2830 Deborah L. Fitch $43,481.V 2831 Glenn A. Shipley 19,79337 2832 Estate of Carol L. DuJordan 137.Q3 2833 Christie Beth Cross 5,923.0 2834 Jessica L. Dott 481.80 2835 Robert W. Fetty 170,0 2836 Jennifer Gizoni 7,885.$0 2837 Danielle Hustey 4,655.87 2838 Patricia R. McKinney 5,271.04 2839 Billy F. Nichols 3,596.J7 2840 Reta J. Woodruff 4,674.$ 2841 PA SCDU Arthur Couts 75.QI0 2842 Washington County Cash Disbursement Account 10,098.11 Transfer PNC Bank 32,147.g7 Transfer f Washington County Retirement Account 194,453.4,8 i Total May Distributions $332,849. June 2006 Distributions ol Check Payee Amount 2843 Charleroi Federal Savings & Loan as trustee of IRA of Tracie L. Beck 90 $4 2796 First Investors Corp as trustee of IRA of Angela M. 7,386.�l Bukovinsky 2797 PNC Investments as trustee of IRA of Margo R. 5,995.90 Epstein i 2798 Dennis L. Gump 87.54 2799 Carla A. Kunsman (fka Carla A. Kotwica) 73.98 2800 Richard P. Whiting (Beneficiary of Karen M. Whiting) 1,605.110 2801 Kelli A. Schell (Beneficiary of Karen M. Whiting) 2,006.111 2802 Veronica G. Furmanek 5,409A 2803 David Gump 620.13 2804 Lois A. Hamberger 1,479.42 2805 Mark J. Sivie 14,335.7la 2806 s 3 PA SCDU Arthur Couts 169-54-0923 75.00 1 1 Sold By IMR Limited Form 825 E0('102204 1217 1 1 2807 Washngton County Cash Disbursement Account Transfer PNC Bank Transfer Washington County Cash Disbursement Account Total June Distributions Check 2809 2810 2811 2812 2813 2814 2815 2816 2817 2818 2819 2820 2821 2822 2823 2824 2825 2826 2827 2828 2829 Transfer Transfer Old Business � None. July 2005 Distributions Payee Toni L. Sabo Estate of Helen M. Butka American Express Trust Co. as trustee of IRA of Angela J. Alampi Mary D. Hicks David P. Hunt Derek S. Johnson Tera Securities as trustee of IRA of Eric S. Mamula Brian d. Mechling Ronald T. Moore, Jr. Kimberly Ann Norton PNC Investments as trustee of IRA of Bonnie E. Pattison Suzanne Coleman Robinson Elizabeth A. Gonzales Thomas C. Kennedy Eric J. Seighman Michelle E. Sherman Sheryl K. Thornburg Brian R. Uniejewski Jeanna C. Ward PA SCDU Arthur Couts 169-54-0923 Washington County Cash Disbursement Account PNC Bank Washington County Retirement Account Total July Distributions 2,377. 13,921. 193.015 Amoun $23,313.3 90.1 73,893.0 El 205.7 4,743.0 2,451.7 4,678.3 2,906.4 2,457.3 197.0 34,824.3 108.5 359.6 6.6 382.0 5,582.9 218.0 63.8 227.8 75.0 40,562.7 18,897.2 New Business Mr. Burns entertained a motion to ratify an MOU dated June 23, 2005 for approval of a disability pension request from Cynthia Wilson. Ms. Wilson was approved to receive a Social Security Disability Pension effective August 2004. Her County Disability Pension is retroactive to March 9, 2005. Motion was seconded by Mrs. Irey. 1 '12 Roll call vote was taken: Mr. Namie — Yes; Mr. King — Yes; Mrs. Irey — Yes; Mr. Maggi — Yes; Mr. Burns — Yes. Motion carried unanimously. To Be Noted For The Record Louis Bailey agreement to purchase non -intervening military service dated s' 10/18/1965 through 10/17/1968 in the amount of $12,128.84. Automatic Rollover Rule - Discussion Mr. Namie led the discussion regarding the County's requirements under the new automatic rollover rule. Per the new rule, the County is required to notify non -vested individuals who leave the County's employment that they must choose an election for the balance of their retirement money. It was suggested by the County's actuaries, the Hay Group, that these individuals be given 30 - 90 days to make such an election. If they do not, the County must name an IRA provider who in turn would invest the money until such time as the individual instructs otherwise. The policy concerning the new rule must be made by the Board by the end of the year. A motion was made by Mr. Maggi and seconded by Mr. King that Mr. Namie chair a committee consisting of Mr. King and Mr. Roger Metcalfe to interview potential IRA providers and make a recommendation to the Board at the next meeting in November. Roll call vote was taken: Yes Mr. Namie — Yes; Mr. King — Yes; Mrs. Irey — Yes; Mr. Maggi — Yes; Mr. Burns — Motion carried unanimously. C. S. McKee — Norm Allen The equity market is behaving better for the quarter but the fixed income market remains fluid — i.e., rational behavior followed by irrational behavior, one after the other. In the fixed market for the quarter, we lag behind the Lehman Brothers Bond Index by 31 basis points. This is due to the fact that we are maintaining a shorter duration than the index. When the bond market does not behave as expected, we are going to trail the index. For the year-to-date and the one-year trailing period, we are ahead of the index. On the equity side, we out -produced the Russell 1000 Value Index for the quarter, year-to-date, and the trailing one-year. In summary, we have two primary concerns for the year: oil prices and real estate. We believe that inflation will rise at a much higher rate than has been reported and will have a large impact on the economy. In real estate, there is a lot of speculation as shown by the fact that the majority of new mortgages are interest -only. While we are seeing a marked improvement so far this year, we cannot dismiss these concerns. 1 1 1 �E Sold By IMR Limited Perm 825 E00102204 1J 1 1 Evergreen Investments — Paul French We've had a very good year-to-date, 4.13% versus the Russell 2000 at 0.9%. A lot of what happened on the year-to-date basis has to do with the finance sector of the portfolio. The Index has about 32% in finance; we are at about 16%. You would be hard pressed to find any small cap value manager with 32% in finance. We feel that there is too much speculation in the real estate market to have that much weighting in finance. We are also avoiding banks. When the yield curve gets narrow like it has, i.e., long term rates stay the same but short term rates increase, banks' profit margins become smaller. Because of the anomalous state of the yield curve, we lost some ground for the quarter. However, we feel that on an intermediate to long-term basis, our bet away from financials and towards consumer discretionaries will benefit us. Yanni Partners — Frank Domeisen For the quarter and year-to-date, the aggregate portfolio is ahead of the benchmark. Washington County was also above the median manager in the peer group. We are over the benchmark slightly for the three year period as well as in the top half of the universe. All managers, on a risk -adjusted basis, have been at their benchmark or above. To pull it all together, you out -performed the median with substantially less risk. Yanni Partners — Jim Gnecco, Sr. Consultant In an updated look at the portfolio, for the month of July 2005, all the fixed income numbers are in the red. Conversely, the equity side shows very positive numbers. We are also seeing the possibility of the beginning of a trend where growth is starting to outperform value. We've been through about a five-year period where value outperformed growth. We may be seeing a reversal of this now. On a final note, the dollar value of the portfolio increased by about $2.25 million for the month and the July 31, 2005 value of the fund is $81.2 million. The meeting was adjourned at approximately 11:45. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: 2005 ATTEST: /jL,' 3 0 Minute No. 211 Washington County Retirement Board Washington, PA November 10, 2005 The quarterly meeting of the Washington County Retirement Board was held at approximately 11:07 a.m. on Thursday, November 10, 2005 in the Public Meeting Room with the following members being present: Commissioners Larry Maggi, J. Bracken { Burns, Sr., and Diana L. Irey; Treasurer Francis King; and Controller Mike Namie. Also present: Director of Finance Roger Metcalfe; Chief Clerk Mary Helicke; Secretary Joyce Thornburg; Audit Manager Kathy Demarest; Solicitor Lynn DeHaven; and Observer - Reporter representative Barbara Miller. Approval of Minutes Mr. Burns entertained a motion to approve Minute No. 210 dated August 25, 2005. Motion was moved by Mrs. Irey and seconded by Mr. Namie that the above mentioned minutes be approved as written. No discussion followed. Those in favor signified by saying aye. Motion carried unanimously. Treasurer's Report Mr. King stated that from August 2005 through September 2005 the bank balance was reconciled to zero. It was moved by Mr. King and seconded by Mr. Maggi that the report be approved. No discussion followed. Those in favor signified by saying aye. Motion carried unanimously. Retirement Allowance Report Bank Balance as of August 1, 2005 $294,519.39 Add: Deposits to Checking Account 697,092.37 Add: Transfers from Investment Accounts 373,091.04 Less: Cancelled Checks (265,349.18) Less: Transfers to Investment Account (697,092.37) Less: ACH Debits ($140,436.73) Bank Balance as of August 1, 2005 g $261,824.52 Less: Deposit In Transit (135.93) Less: Outstanding Checks (176,710.71) Less: Stale Dated Checks (100.96) Less: Retirement Check Run August 31, 2005 ($84,876.92) Bank Balance as of August 31, 2005�0- 1 1 E