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HomeMy WebLinkAboutCOMM - Meeting Minutes - 211 - 11-10-2005 - RETIREMENTMR Limited Form 825 c00? 02204 1 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: 13 V 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 # ;s 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 $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 IMR Limited Form 825 E00102204 1 Bank Balance as of September 1, 2005 $261,824.52 Add: Deposits to Checking Account 188,465.55 Add: Transfers from Investment Accounts 259,848.29 Less: Cancelled Checks (390,810.53) Less: Transfers to Investment Accounts (188,465.55) Less: ACH Debits ($14,215.53) Bank Balance as of September 1, 2005 $116,646.75 Less: Deposit In Transit (135.93) Less: Outstanding Checks (32,821.81) Less: Stale Dated Checks (100.96) Less: Retirement Check Run Sept. 31, 2005 ($83,588.05) Reconciled Balance as of Sept. 31, 2005 Requisitions Mr. Namie stated that requisitions for the months of September and October 2005 totaled $552,377.56. 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. September 2005 Distributions Check Payee 2874 Estate of Vlasta Draper 2875 Estate of Arman DiVincenzo 2876 Ernestine Clark 2877 Beverly A. Hellen 2878 Mary Whiteman 2879 PA SCDU (Arthur Couts) 2880 Washington County Cash Disbursement Account Transfer PNC Bank Transfer Washington County Retirement Account Total September 2005 Distributions October 2005 Distributions Check Payee 2882 Washington Area Teachers F.C.U. as trustee of IRA of Mary Whiteman 2883 Estate of John Malarbi 2884 Michelle L. Bryner 2885 Raymond Bukowski 2886 Cecilia A. Cameron Amour $101.6 150.9 1,068.1 103.3 4,388.4 75.0 39,972.6 9,668.4 204,319.6 Amou 5, 5,787.2 711.1 3 2 2887 2888 2889 2890 2891 i 2892 2893 2894 2895 Transfer Transfer Old Business None. Slovenian Savings & Loan as trustee of IRA of Dorothy Demark Robert Wyman Hunter Kristina Lynn John Matthew J. Kerr Sharon D. Miller Joyce A. Reedy Nizar Zubchevich PA SCDU (Arthur Couts) Washington County Cash Disbursement Account PNC Bank Washington County Retirement Accoutn Total October 2005 Distributions 12,880. 608. 2,182. 186. 135. 6,687. 2,755. 42,691. 12,034. New Business Mr. Burns entertained a motion to ratify an MOU dated September 22, 2005 for Michelle Miller -Kotula to buy back unpaid leave of absence time from 08/08/2004 to 11/22/2004 in the amount of $2,255.35. Motion was moved by Mrs. Irey and seconded by Mr. Maggi. 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 Diane Eland agreement to purchase service credit dated 12/26/2000 to 07/30/2004 in the amount of $6,977.82. C. S. McKee — Norm Allan The third quarter was a very good quarter but the month of October basically took it all away. Historically, September and October are the two weakest months for the market and November and December are the strongest. At the end of the quarter, the value of our portion of the portfolio went from $41,350,000 to $42,628,000. The current value is $42,263,000, a slight decline since the close of the quarter. When you take a look at the indexed returns for the month of October, you can't find a positive index. The fixed income segment of the portfolio was up 0.03 for the quarter versus the j Lehman Aggregate which was down 0.67. For the trailing year, we are up almost 100 basis points over the benchmark. The Russell 1000 Value Index for the equity market 1 [I 1 0 E was up 3.88 for the quarter and we were up 4.87. We are at almost 19% for the trailing one-year versus 16.69% for the index. We are hoping for a rebound on the equity side in November and December but are not optimistic about the fixed income market because of rising interest rates. Overall, the economy itself is good, but we are not seeing business reinvestments — consumers are the ones carrying the economy. The Boston Company — Kristen Gasper and John Truschel We have had excellent results in both absolute and relative terms. We are up over 30% since inception and well ahead of the benchmark. Within the market, it has been a good time to be invested in energy and not a good time to be invested in telecommunication services. We have outperformed in 9 of the 10 sectors. The sector that we have not done as well is in consumer staples. We have done especially well in energy and Japanese steel companies. Even though the telecommunications market is down, we have actually made money in that sector. The combination of good growth at the right price is what we're after and we expect this strategy will continue to lead to good performance in the future. Emerald Advisers — John Thompson and Tom Datillo The small cap portfolio that you have with us is now closed to outside investors. We will still take additional monies from our existing clients, but any we will not accept any new clients. The reason for that is in a small cap world if you surpass a certain amount of assets under management, it gets more difficult to get into and get out of some of the smaller companies. We have diversified our business to a certain extent and started a large cap core portfolio that is off to a very good start performance -wise. We have also essentially sold our mutual funds so that we may concentrate on managing money instead of the administration and distribution of our mutual funds. As for performance, year-to-date through the end of the quarter we were up about 4.5% versus the Russell 2000 Growth Index which was up 2.5%. Since the end of the quarter, we are basically flat while the Index itself has lost about a point and a third. We are up between 3 and 4 percent over the benchmark for the year. Over the last 12 months, the portfolio is up a little over 15% versus the benchmark of not quite 11 %. Yanni Partners — Jim Gnecco and Frank Domeisen For the quarter, every manager outperformed their benchmark. The international sector showed double digit returns. On a year-to-date basis, all of the managers with the exception of BlackRock outperformed the benchmark. BlackRock matched the benchmark. For the one year, every manager on the equity side is in the double digit range. The total portfolio return for the quarter was 3.7% versus the target market index of 2.4%. Active management has paid off for the County. For the year-to-date, the total portfolio looks even better with 6% versus the benchmark of 2.9%. For the one year, we have 13.1 % versus the target market index of 9.8%. Even more importantly, for the one-year and three-year, you are outperforming the actuarial assumption of 7%. For the ten-year, you have an 8.4% average per year. We are also 13 4 pleased with the fact that you haven't taken on a lot of risk to achieve this. However, October shows negative returns right down the line. The managers held up well versus the benchmark but the return was still negative. We estimate that the total plan lost about 2% for the month of October. We are hopeful that November and December will be better. The meeting was adjourned at approximately 11:45 a.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: ATTEST: 1 11