The URL can be used to link to this page

Home My WebLink AboutCOMM - Meeting Minutes - 234 - 8-19-2010 - RETIREMENTSold By !MR �n Minute No. 234 Washington County Retirement Board Washington, PA August 19, 2010 The quarterly meeting of the Washington County Retirement Board was held at approximately 11:00 a.m. on Thursday, August 19, 2010 in the Public Meeting Room with the following members being present: Commissioners Larry Maggi and J. Bracken Burns; Controller Michael Namie; and Treasurer Francis L. King. Also present: Chief Clerk Mary Helicke; Secretary Joyce Thornburg; Executive Secretary for Commissioner Irey, JoAnn Metz; Audit Manager Kathy Demarest; Solicitor Lynn DeHaven; Director of Finance Roger Metcalfe; Financial Analyst Irene Farabee; Deputy Controller Joshua Hatfield; Observer -Reporter representative Linda Metz; concerned citizens John Adams and Carl Maggi; Gene Natali, Jr. representing C.S. McKee; John Gentry and Jed Robi representing Federated Investors; and Lee Martin representing Peirce Park. Approval of Minutes Mr. Maggi entertained a motion to approve Minute No. 233 dated May 20, 2010. The motion was moved by Mr. King and seconded by Mr. Namie that the above mentioned minutes be approved as written. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. Public Comment Mr. Adams made some general comments concerning the clarification of expenses for the Retirement Fund. Treasurer's Report Mr. King stated that for May, June, and July 2010, the bank balance was reconciled to zero. It was moved by Mr. King and seconded by Mr. Burns that the report be approved. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. Retirement Allowance Report Bank Balance as of May 1, 2010 $ 191,814. Add: Deposits to Checking Account 620,214. Add: Transfers from Investment Account 364,831. 24 2 Less: Cancelled Checks (141,963.18) Less: Transfer to Investment Account (459,888.73) Less: ACH Debits (319,868.28) Bank Balance as of May 31, 2010 $ 255,140.18 Less: Transfers into Checking Account (1,165.10) Less: Outstanding Checks (233,685.51) ! Less: Retirement Check Run 20 289.57 Reconciled Balance as of May 31, 2010 $ -0- Bank Balance as of June 1, 2010 $ 255,140.18 Add: Deposits to Checking Account 688,907.86 Less: Cancelled Checks (327,552.97) Less: Transfers to Investment (132,195.63) Less: ACH Debits (358,622.01) Bank Balance as of June 30, 2010 $ 125,677.43 Less: Transfers into Checking Account 1,165.10 Less: Outstanding Checks (105,696.50) Less: Retirement Check Run (21,146.03) Reconciled Balance as of June 30, 2010 $ -.- Bank Balance as of July 1, 2010 $ 125,677.43 Add: Deposits to Checking Account 694,359.36 Add: Transfers from Investment Account 553,375.24 Less: Cancelled Checks (198,317.64) Less: Transfer to Investment (691,245.41) Less: ACH Debits (325,748.69) Bank Balance as of July 31, 2010 $ 158,100.29 Less: Transfers into Checking Account (1,975.85) Less: Outstanding Checks (136,633.03) Less: Retirement Check Run (19,491.41) Reconciled Balance as of July 31, 2010 $ -0- Requisitions Mr. Namie stated that requisitions for the months of May, June, and July 2010 totaled $1,735,663.03. It was moved by Mr. Namie and seconded by Mr. King that the requisitions be approved. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. 1 n Sold By IMR Limited Form 825 E001 Check Payee Amount 230 Shirley L. Brown $ 4,034.07 231 Deborah A. Cox Dillie 53.84 232 Sheila Durbin Phillips 1,485.56 233 Deborah E. Hannah 13,805.42 234 Michael Herald 2,949.20 235 James R. Hixenbaugh III 13,072.01 236 Capital Bank & Trust as trustee of IRA of Nicholas F. 1,255.67 Hood 237 William Knestrick III 2,363.14 238 Nichole Lemley 3,241.77 239 Shirley Penny Smith 2,817.06 240 Northwestern Mutual as trustee of IRA of Aaron J. 36,169.47 V anatta 241 Trustee of the Vanguard Fiduciary Trust Co. FBO Janet 8,316.18 Wessel 242 Trustee of Garrett State Bank FBO Rene Reifel 3,575.37 243 Robert D. Strawn 3,151.78 244 Northwest Savings Bank as trustee of IRA of Robert D. 132,273.95 Strawn 245 Felix Lewis Jr. 34,766.52 246 Washington County Regular Payroll Escrow Account 3,891.44 247 Washington County Cash Disbursement Account 19,646.99 Transfer PNC Bank 21,606.61 Transfer Washington County Retirement Account 315,934.41 Total May 2010 Distributions S 624,410.46 June 2010 Check Payee Amount 248 Melissa Andrews $ 18,278.99 249 Lisa Bistle 14,533.86 250 Elizabeth M. Faloskey 19,416.47 251 Donald Johnson 335.52 252 Carol A. Wright 27.84 253 Trischa M. Russell 1,401.82 254 Barbara Gerbec 65,205.76 255 Deborah Braden 40,303.89 256 Washington County Regular Payroll Escrow Account 3,994.16 257 Washington County Cash Disbursement Account 15,562.00 Transfer PNC Bank 54,323.33 Transfer Washington County Retirement Account 324,493.69 Total June 2010 Distributions S 557,877.33 July 2010 Check Payee Amount 258 Angeline Veltri $ 1,851.70 24 4 260 261 262 263 264 265 266 267 268 269 270 271 272 273 Transfer Transfer Old Business None. Veltri Kristine Black _ 157.92 Daryl Lee Borkowski 5,295.33 Stephanie Dice 389.49 CCO Investment Services as trustee of IRA of 6,989.57 Patricia Ann Frank Caputo Codi Fuller 7,131.99 Debra L. Hall 219.91 Tina M. Lohr 172.37 USAA as trustee of IRA of Melissa A. Migliaro 8,830.68 Lisa M. Mowers 2,217.67 Mary Shannon Secreti 3,118.05 Deloris Stickle 741.60 Tanya Renee Stutzman 182.12 Washington Co. Cash Disbursement Account 71,264.62 Washington County Regular Payroll Escrow Account 4,063.75 PNC Bank 19,035.94 Washington County Retirement Account 325,069.64 Total July 2010 Distributions $ 55jJ75.24 New Business Mr. Maggi called for a motion to approve a request from Edward Strawn to buy back per diem status time from 11/25/1991 to 01/23/1993 in the amount of $1,401.40. The motion was made by Mr. Namie and seconded by Mr. Burns. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. Mr. Maggi called for a motion to approve a request from Karen W. Wescott to buy back { per diem status time from 11/21/1977 to 03/31/1980 in the amount of $921.49. The motion f was made by Mr. Namie and seconded by Mr. Burns. No discussion followed. 3 Roll call vote taken: 3 Mr. Namie — yes; Mr. King — yes; Mr. Burns — yes; Mr. Maggi — yes. i Motion passed unanimously Mr. Maggi called for a motion for ratification of an MOU dated 07/15/2010 for approval of a request by Donna J. Penrose to buy back unpaid leave of absence time from 02/25/1992 to 05/05/1992 in the amount of $752.87 and from 08/29/1995 to 09/17/1995 in the amount of $213.02. The total amount to buy back this period of time is $965.89. The motion u No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. Mr. Namie noted for the record that the Washington County Employees Retirement Fund Audit for the year ended December 31, 2009 was completed and contained no findings. Presentations C.S. McKee — Gene Natali, Jr. Mr. Natali stated that the equity market was down 11.3% for the second quarter of 2010. The big negative in C.S. McKee's portfolio was Transocean. While Transocean is off the portfolio for the 3rd quarter, it hurt the 2nd quarter performance by about 160 basis points. On the fixed income side of the portfolio, C.S. McKee was at +2.4%, lagging the benchmark slightly, but still ahead for the year-to-date. The reason for the slight underperformance for the quarter was due to an overweighting of Treasury Inflation Protected Securities. Mr. Natali stated that C.S. McKee is betting that equities will rebound and that deflation will not occur, thereby positioning the portfolio accordingly. Federated Investors — John Gentry/Jed Robi Mr. Robi began with a brief overview of Federated Investors and then turned the presentation over to Mr. Gentry to discuss the portfolio and market performance. Mr. Gentry stated that their performance for the year-to-date was in line with the benchmark. In a down market, they are positioned to give downside risk protection. In the last 12 months, overall return was 8.4%. Good sector allocation added to the performance; what hurt was being short in their duration call. Mr. Gentry stated that this was due to the fact that they were expecting interest rates to rise, thereby leading them to take less interest rate risk. All told, the quarter performance was right in line with benchmark with very strong asset numbers and year-to-date numbers. Mr. Gentry projects that even with uncertainty in the market, 2010 will be a good bond year with stable, single -digit returns in fixed income. Peirce Park — Lee Martin Mr. Martin began his presentation with an overview on market performance. The market fell tremendously in May and June. Fixed income was down with the exception of Treasuries, the international market was down, and foreign currency fell leading to a stronger dollar. For this reason, Mr. Martin feels that having a global manager in the current market environment would be a good idea. Most companies are now global as opposed to exclusively domestic or international. Global managers can move between domestic and international markets as the need arises and the market dictates. He suggested the possibility that the Board consider hiring a global manager in the future. For the performance review, the overall fund was down 7.5% for the quarter but still up over 14% for the year, and was in the top 13% of all public funds. There was good over I performance from the real estate sector. Emerald was down for the quarter but has come back tremendously since the end of the quarter. Twin Capital is slightly behind again; Mr. Martin feels that they need to be watched. C.S. McKee was down on both the equity and fixed income 2 14 6 underperformance. Federated Investors was in line with the benchmark. Evergreen (Wells Fargo) did well, as they tend to do in a down market, as did Dodge & Cox. Artio did better last quarter but was still down overall and subsequently, are on Peirce Park's internal watch list. Mr. Martin stated that if the Board would choose to consider a global manager, Artio may be the piece to make the change from. The meeting was adjourned at 12:05 p.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: / ,'7V,� M`/` % 0 , 2010 ATTEST:�� 1 1