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Home My WebLink AboutCOMM - Meeting Minutes - 220 - 8-16-2007 - RETIREMENTSold By IMR Limited Form 825 E00102204 1 1 Minute No. 220 Washington County Retirement Board Washington, PA August 16, 2007 The quarterly meeting of the Washington County Retirement Board was held at approximately 11:15 a.m. on Thursday, August 16, 2007 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 Michael Namie. Also present: Director of Administration Scott Fergus; Director of Finance Roger Metcalfe; Chief Clerk Mary Helicke; Secretary Joyce Thornburg; Audit Manager Kathy Demarest; Solicitor Lynn DeHaven; Director of Human Resources Tim McCullough; Elections Office employee Brittany Bushmire; concerned citizen John Adams; Gene Natali representing C.S. McKee; Kristen Gasper representing The Boston Company; Paul French representing Evergreen Investments; and Michael Shone representing Peirce Park. Approval of Minutes Mr. Burns entertained a motion to approve Minute No. 219 dated May 17, 2007. The motion was moved by Mr. Maggi and seconded by Mrs. Irey that the above mentioned minutes be approved as written. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mrs. Irey — yes; Mr. Maggi — yes; Mr. Burns — yes. Public Comment Mr. Adams requested that the Commissioners consider rescinding their annual cost of living raises as this in turn will result in higher pension costs. Mr. Burns thanked Mr. Adams for his comments. Treasurer's Report Mr. King stated that for May 2007 and June 2007 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. Roll call vote taken: — yes. Mr. Namie — yes; Mr. King — yes; Mrs. Irey — yes; Mr. Maggi — yes; Mr. Burns Retirement Allowance Report Bank Balance as of May 2007 $ 64,850.60 Add: Deposits to Checking Account 112,780.37 Add: Transfers from Investment Accounts 552,292.89 Less: Cancelled Checks (205,130.13) Less: Transfers to Investment Account (202,780.37) Less: ACH Debits (165,980.79) Bank Balance as of May 31, 2007 $156,032.57 Less: Investment Transfer (2,093.78) Less: Outstanding Checks (71,496.76) Less: Retirement Check Run May 31, 2007 (82,442.03) Reconciled Balance as of May 31, 2007 e Bank Balance as of June 30, 2007 $ 156,032.57 Add: a Deposits to Checking Account 532,507.01 Add: Deposit in Transit 69,328.21 Add: Bank Credit 0.01 Add: Transfers from Investment Accounts 207,984.62 Less: Cancelled Checks (165,582.54) Less: Transfers to Investment Accounts (534,679.37) Less: ACH Debits (155,928.08) Bank Balance as of June 30, 2007 $109,662.43 Less: Outstanding Checks (30,893.83) Less: Retirement Check Run June 30, 2007 (78,768.60) Reconciled Balance as of June 30, 2007�0- Requisitions E Mr. Namie stated that requisitions for the months of May, June, and July 2007 totaled $970,208.16. It was moved by Mr. Namie and seconded by Mrs. Irey that the requisitions be approved. t No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mrs. Irey — yes; Mr. Maggi — yes; Mr. Burns — yes. May 2007 Check Payee Amount 3129 Ryan A. Beaver $ 718.5: 3130 PWP Quatech Int. 401(k) PS FBO James D. Dunn 7,634.4( 31 Jack J. Griest 819.49 1 177 1 I 3132 Todd Hammond 3133 Deborah L. McGee 3134 Wesbanco FBO Sylvia Mounts 3135 Jessica Pisani (Beneficiary of Vito Pisani) 3136 Carrie Pisani (Beneficiary of Vito Pisani) 3137 Washington County Cash Disbursement Account Transfer Washington County Payroll Escrow Account Transfer PNC Bank Transfer Washington County Retirement Account Total May 2007 Distributions June 2007 Distributions Check Payee 3138 Janelle L. Bauer 3139 Lisa J. Bennett 3140 Vielka N. Culp 3141 Joseph Paul Duckworth 3142 Michelle Lynn Fullum 3143 Brenda Hays 3144 Mary Margaret Kirkland 3145 James L. Markley 3146 UPMC Savings Plan FBO Agnes Scarton 3147 Beth Claire Soucie 3148 Jessica Marie Ann Staley 3149 Amber L. Wilson 3150 Tanya J. Walker 3151 Jason C. Winters 3152 Washington County Cash Disbursement Account Transfer Washington County Regular Payroll Escrow Account Transfer PNC Bank Transfer Washington County Retirement Account Total June 2007 Distributions July 2007 Distributions Check Payee 3154 Estate of Farrell Jackson Sr. 3155 Andrea L. Ausher 3156 JMSLLC as trustee of IRA of John Bartanus Jr. 55, 582.58 1,675.47 2,405.39 979.49 979.48 39,689.98 1,112.18 24,479.48 219.890.28 EZ�9 $ 825.09 240.33 77.77 234.85 2,738.37 521.10 2,266.27 2,579.30 11,648.45 230.57 426.27 430.14 5,493.09 1,917.01 15, 575.33 1,130.18 13, 545.50 217,433.21 $ 277,312.83 $ 1,592.54 403.71 11,619.35 Amount Amount 178 3157 George M. Cannon 290.88 3158 Meaka D. Carter 3,149.86 3159 Schuyler Celesky 146.41 3160 David P. D'Alessandro 5,962.07 3161 Joshua B. Grimes 126.14 3162 Selina Mae Littell 667.26 3163 Shirley J. Riley 29,425.30 3164 Amerisery as trustee of IRA of Michael T. 10,877.92 Schidlmeier 3165 MLPF&S Custodian FBO Sashidhar Segu 1,186.11 3166 Teresa A. Williams 4,802.22 3167 Washington County Cash Disbursement 14,724.12 Account 3168 Washington County Regular Payroll Escrow 1,130.18 Account Transfer PNC Bank 22,004.65 Transfer Washington County Retirement Account 228,819._86 Total July 2007 Distributions Old Business None. New Business C. S. McKee — Gene Natali, Jr. In the 2"d quarter of 2007, C.S. McKee's portion of the County's plan has added $2.1 million with a year-to-date addition of $2.8 million. For the quarter and the year-to-date, both large cap value and equity have been very strong. Mr. Shone asked Mr. Natali how C.S. McKee's performance has been so far in the 3rd quarter since the market has been down. Mr. Natali responded that since the beginning of the quarter, the Russell 1000 Value has lost 1.6%; C.S. McKee has lost a little less than that due to the County's overweighting in energy and technology and underweighting in financials. Paul French — Evergreen Investments Performance has been great for the quarter, year-to-date, 1-year, and 3-year with the Evergreen portion of the portfolio almost hitting the benchmark since inception. With the market being down since the end of the quarter, the portion of the County's portfolio as managed by Evergreen is down 2.51 % year-to-date with the Russell 2000 Value being down 7.31 %. Although these numbers are negative, on a relative basis, the County's portfolio is outperforming the index. 1 Kristen Gasper — The Boston Company 1719 Form 825 E007 1 1 Ms. Gasper reported that seven members of the team that manage The Boston Company's portion of the County's portfolio have left The Boston Company. She assured the Board that the County's portfolio was still being managed by well - qualified and experienced individuals. Mr. Burns asked Ms. Gasper if she was aware of the motivation behind the departure of these seven employees. Ms. Gasper responded that the seven that left went to Munder Capital and that it is her understanding that they will receive an equity share in that firm. Ms. Gasper noted that the clients that have left The Boston Company due to this news have only done so because of a provision in their investment policy that if a portfolio manager leaves, the contract with that particular investment manager is automatically terminated. Peirce Park — Michael Shone Mr. Namie asked Mr. Shone to begin his presentation with comments about The Boston Company. Mr. Shone stated that he has very strong concerns about the magnitude of the loss of seven key employees. Independent of this issue, the Board was already considering adding a second international manager. Mr. Shone feels that it is time to begin the search for another manager, whether it be in addition to or to replace The Boston Company. Mr. Burns asked for a motion to leave the amount currently invested in internationals with The Boston Company and have Mr. Shone begin a search for two international managers, including The Boston Company in the search. The motion was moved by Mr. King and seconded by Mr. Maggi. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mrs. Irey — yes; Mr. Maggi — yes; Mr. Burns — yes. As for the performance summary, Mr. Shone stated that the markets did extremely well in the second quarter but are being pummeled so far this quarter. On the positive side, the County's fund is pretty well cushioned and has not been hit as hard as some funds. The plan made $4 million dollars in the second quarter with a 4.4% return and made $13 million dollars for the year with a 14.1 % return. C.S. McKee and Evergreen have done very well in the quarter. Ark is below their benchmark as is BlackRock. Since Emerald was just moved to mid -growth on July 1, it is too early to comment on their performance. After a discussion of Peirce Park's large -cap enhanced index manager recommendations, the Board decided to interview four companies: Intech, Mellon Equity, Emerald Advisors, and Twin Capital Management, Inc. The motion was moved by Mr. Maggi and seconded by Mr. Namie. — yes. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mrs. Irey — yes; Mr. Maggi — yes; Mr. Burns Mr. Namie stated that he would coordinate an interview schedule with Mr. Shone and inform the Board of the interview dates. The meeting was adjourned at 12:35 p.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: s E i , 2007 f ATTEST: 7 1