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HomeMy WebLinkAboutCOMM - Meeting Minutes - 233 - 5-20-2010 - RETIREMENT2 315 IMR Limited Form 825 E001 11 1 1 C.S. McKee — Gene Natali, Jr. Mr. Natali stated that performance was very strong for 2009 compared to 2008. The harder an investment was hit in 2008, the stronger it rebounded in 2009. The opposite has occurred so far in 2010. The County's portfolio performed strong for 5 of the 12 months in 2009 with fixed income performing exceptionally well above benchmark. Looking forward in 2010, C.S. McKee feels that financials will continue to do poorly. Commercial real estate loans will be coming due and will drain the financial industry. Outside of financials, the economy is stronger than it has been and equities should perform well. Peirce Park — Lee Martin Mr. Martin began with a market environment review of 2009. The market began performing well in 2009 with positive signs of the economy beginning to recover from a recession. The gross domestic product was positive for the first time in a year, the rate of job loss was lower, retail sales began to improve, and consumer sentiment increased. Inflation was up slightly, which is a part of the normal market recovery cycle. Inflation will increase and become a factor at some point in the future. During the second and third quarters of 2009, small cap outperformed large cap and growth outperformed value. During the fourth quarter, however, we saw a return to fundamentals with large cap outperforming small cap and higher quality, more stable companies performing better. Mr. Martin concluded his presentation with performance highlights for the year. The County's fund has done well with 41h quarter performance approximating the policy index. For the year, the fund was 1.2% above the policy index and beat the one, three, and five year benchmarks. The fund gained $17 million and ranked in the top 15% of all public funds. On the equity side, Twin Capital matched their benchmark for the quarter and year, C.S. McKee equity matched their benchmark for the quarter and was about 4 '/2 % above for the year, Evergreen was 10% above benchmark for the year, and Emerald was behind for the quarter but up about 80 basis points for the year. On the fixed income side, bother, Federated Investors and C.S. McKee were above their respective benchmarks with C.S. McKee adding 400 basis points over the year. On the international side, Artio was behind for the quarter and for the year, mostly due to being underweighted in emerging markets. Peirce Park will keep them on watch, but feel confident that their performance will improve with market conditions returning to normal. Dodge and Cox International did well in 2009. Dodge and Cox is a more aggressive manager and Artio is more conservative, providing a good fit for the County. On the real estate side, the REIT added by the County in 2009 proved to be a good diversifier and added considerably well to the portfolio's performance in the past year. Mr. Martin left fiduciary education materials with the Board to review and be discussed at a future meeting. The meeting was adjourned at 11:00 a.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: ;may 17 2010 ATTEST:- 2 e3 6 Minute No. 233 Washington County Retireme#t Board Washington, PA May 20, 2010 t �4 P The quarterly meeting of the Washington County Retirement Board was held at approxil*ately f 11:00 a.m. on Thursday, May 20, 2010 in the Public Meeting Room with the following member' being present: Commissioners Larry Maggi, Diana Irey, and J. Bracken Burns; Controller Michael N40ie; and Treasurer Francis L. King. Also present: Chief Clerk Mary Helicke; Secretary Joyce Thornburi; Audit s Manager Kathy Demarest; Solicitor Lynn DeHaven; Director of Administration Scott Fergus; C Reporter representative Barbara Miller; concerned citizens John Adams and Carl Maggi; Gene 1 i representing C.S. McKee; Andy Balog and Geoff Gerber representing Twin Capital; Dave Reic: representing Hay Group; and Lee Martin representing Peirce Park. Approval of Minutes Mr. Maggi entertained a motion to approve Minute No. 232 dated February 18, 2010 was moved by Mr. Burns and seconded by Mr. Namie that the above mentioned minutes be written. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Ms. Irey — yes; Mr. Burns — yes;Mr. Maggi — yes. Motion passed unanimously. Public Comment Mr. Adams requested that the Commissioners consider rescinding their annual cost of IN as this in turn will result in higher pension costs. Treasurer's Report Mr. King stated that for January, February, March, and April 2010, the bank balance to zero. It was moved by Mr. King and seconded by Ms. Irey that the report be approved. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Ms. Irey — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. Retirement Allowance Report Bank Balance as of January 1, 2010 Add: Deposits to Checking Account Add: Transfers from Investment Account Less: Cancelled Checks Less: ACH Debits Bank Balance as of January 31, 2010 Less: Transfers into Checking Account Less: Outstanding Checks Less: Retirement Check Run $ 88,278.48 225,604.69 338,088.06 (127,980.01) (314,820.12) $ 209,171.10 59.98 (175,901.37) (33,329.71) atali, Jr. motion as raises 11 1 1 2317 Bank Bala ce as of February 1, 2010 $ 209,171.10 Add: Deposits to Checking Account 221,423.86 Add: Transfers from Investment Account 221,904.69 Less: Can elled Checks (247,932.80) Less: AC Debits (307,262.63) Bank Bala ce as of February 28, 2010 $ 97,304.22 Less: Trar 3fers into Checking Account (1,008.77) Less: Outstanding Checks (68,107.43) Less: Reti ement Check Run (29,188.02) econcile4 Balance as of February 28, 2010 $ Q Bank Bala ce as of March 1, 2010 $ 97,304.22 Add: Depa sits to Checking Account 237,988.74 Add: Transfers from Investment Account 501,848.00 Add: AC Credit 40.00 Less: Can elled Checks (178,431.42) Less: Trar 3fer to Investment (234,956.46) Less: ACE Debits (309,195.16) ank Bal ce as of March 31, 2010 $ 114,597.92 Less: Trar. Sfers into Checking Account (2,864.04) Less: Outlanding Checks (85,369.76) Less: Reti ement Check Run (26,364.12) IR econcile4 Balance as of March 31, 2010 $ -D- ank Bala ce as of April 1, 2010 $ 114,597.92 dd: Depd sits to Checking Account 323,454.91 dd: Tran fers from Investment Account 464,178.24 dd: ACH Credit 1,165.10 Le ss: Cant elled Checks (181,284.35) Less: Trar 3fer to Investment (216,294.02) Less: AC Debits (314,002.98) Bank Balaj ce as of April 30, 2010 $ 191,814.82 Less: Trar Sfers into Checking Account (99,253.64) Less: Less: OutLanding Reti Checks meat Check Run (69,619.50) (22,941.68) �econci14Balance as of April 30, 2010 $ Q Mr, I Namie stated that requisitions for the months of February, March, and April 2010 totaled $ ,424,10 15. It was moved by Mr. Namie and seconded by Mr. Burns that the requisitions be approved. No iscussion followed. 213 Mr. Namie — yes; Mr. King — yes; Ms. Irey — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. February 2010 Check Payee 196 Estate of Ruth J. Bosson 197 Brittany Bongiorni 198 Shari Lynn Cox 199 Bobbie Jo Dillie 200 Kim McKnight 201 Shannon Moore 202 Matthew Tharp 203 Aziza Villamar 204 Horace Mann Life Ins Co as trustee of IRA of Michael J. Zipko 205 Washington County Cash Disbursement Account 206 Washington County Regular payroll Escrow Account Transfer PNC Bank Transfer Washington County Retirement Account Total February 2010 Distributions March 2010 Check Payee 208 Robert Catto, Jr. 209 Pete A. Inservso 210 Rachel A. Miller 211 James A. Salemme 212 Josephine Spesak 213 Hugh White 214 Fidelity as trustee of IRA of Linda C. West 215 Capital Bank & Trust as trustee of IRA of Mary Kay Yarusinsky 216 Diana L. Rush 217 Washington Federal as trustee of IRA of Diana L. Rush 218 Deborah C. Petricca 219 Washington County Cash Disbursement Account 220 Washington County Regular Payroll Fund Transfer PNC Bank Transfer Washington County Retirement Account Total March 2010 Distributions 1; Amodot $ 45.23 I I (k,32 14,46111 7,89 �36 10459 i. 9,84Q 80 12602 2,68 L71 31,00t86 is 44,86185 i' 3,954E 11 21,68A42 I 2319 Sold By ]MR 1 I Cht k Payee Amount 22 Heather Duncan 265.37 22E Cindy Sue Brady 23,822.99 22 Guy A. Flament Jr. 1,795.46 22 Arlene J. Hartley 34,753.45 221 Jacob M. Hoelle 378.42 22 Rene Reifel 2,860.37 227 Traci Zimmerman 318.54 22 1 Washington County Payroll — Copay Retirees 3,900.86 221 Washington County Cash Disbursement Account 67,054.47 Tran er PNC Bank 29,229.65 Tran r Washington County Retirement Account 310,569.95 r Total April 2010 Distributions S 474,949.53 10 M Maggi called for a motion to approve a request from Mark Husak to buy back per diem status from 2/28/1994 to 04/18/1994 in the amount of $130.95. The motion was made by Mr. Burns and ided 1. y Mr. Namie. No discussion followed. call vbte taken: Namie — yes; Mr. King — yes; Ms. Irey — yes; Mr. Burns — yes; Mr. Maggi — yes. ion passed unanimously. It as noted for the record of an agreement with James D. Wood to purchase service credit dated /197 — 01/05/1976 in the amount of $409.64. In Reichert spoke briefly about the County's valuation report and stated that the County has done job of controlling liabilities. The average salary increase was 2.7%, which was lower than the 4 o, the employee population has remained about the same, the investment managers have done an j lb on their end, and the annual required contribution was in line with the estimate of 3.6 million. n Ca i 1 Management — Andy Balo /Geoff Gerber Mr Balog began the presentation with a brief overview of Twin Capital Management and stated the cut rent investment team has been together for the last 11 years. He also noted that for the one year )d end g the first quarter of 2010, large cap value was the place to be. Mr. Balog then turned the entati over to Mr. Gerber to briefly discuss market performance. Mr. Gerber stated that the portfolio 2140 Capital's performance has outperformed the market. Although volatility in the market remains ; Twin Capital is optimistic about large cap value's performance remaining strong. C.S. McKee — Gene Natali, Jr. Mr. Natali stated that the theme for last year was that the worse the investment did in 20( better it did in 2009. The reverse is true so far in 2010. The portfolio is performing relatively considering the market, particularly fixed income. Fixed income was up 4% versus a benchm; Equities still remain a question mark, and although they were up at the end of the first quarter a concern, the -11 of 3.5%. 2010, are currently in the negative since the end of the quarter. Getting the County to where it needs to b� to achieve a 7.5% or 8% return is hard to envision at this point. Peirce Park — Lee Martin Mr. Martin stated that the market showed strong performance for the 1 st quarter of 20101 inflation is beginning to be a factor. Volatility is also still an issue. Value continued to that growth for the quarter and the year. As Mr. Natali touched upon, the stocks that got beat up the most wd're the ones ,a that came back the most. Fixed income remained steady for the quarter and the year. The dome�tic market is performing better due to the fact that the dollar is stronger. The County's portfolio was up 4.8% for the quarter, gaining over $4 million and r County ranking in the top 4% of all public defined benefit plans. For the year to date, the the top 7% of all public defined benefit plans gaining 40.3% over the year. Mr. Martin at County's strong performance due to the good fit of the investment managers, a very well di portfolio, and the Board's commitment to rebalancing to the investment strategy. The meeting was adjourned at 11:45 a.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: / � .2010 ATTEST: in the ranked in the .ed 1