The URL can be used to link to this page

Home My WebLink AboutCOMM - Meeting Minutes - 235 - 11-18-2010 - RETIREMENT2 417 E� 1 Minute No. 235 Washington County Retirement Board Washington, PA November 18, 2010 The quarterly meeting of the Washington County Retirement Board was held at approximately 10:48 a.m. on Thursday, November 18, 2010 in the Public Meeting Room with the following members being present: Commissioners Larry Maggi, Diana Irey Vaughan, and J. Bracken Burns; Controller Michael Namie; and Treasurer Francis L. King. Also present: Chief Clerk Mary Helicke; Secretary Joyce Thornburg; Solicitor Lynn DeHaven; Director of Administration Scott Fergus; Director of Finance Roger Metcalfe; Deputy Controller Joshua Hatfield; Observer -Reporter representative Barbara Miller; WJPA representative Jim Jefferson; concerned citizens John Adams and Frank Byrd; Tom Datillo and David Chu representing Emerald Advisors; and Lee Martin and Sarah Wilson representing Peirce Park. Approval of Minutes Mr. Maggi entertained a motion to approve Minute No. 234 dated August 19, 2010. The motion was moved by Mrs. Irey Vaughan 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; Mrs. Irey Vaughan — yes; Mr. Maggi — yes. Mr. Burns was not present for this vote. Motion passed unanimously. Public Comment Mr. Adams commented on the State's retirement fund deficit. Treasurer's Report Mr. King stated that for August, September, and October 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; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. Retirement Allowance Report Bank Balance as of August 1, 2010 $ 158,100. Z9 Add: Deposits to Checking Account 686,166.33 Add: Transfers from Investment Account 490,478.58 Less: Cancelled Checks (167,486. 3) Less: Transfer to Investment Account (656,142. 1) Less: Retirement Check Run Bank Errors Reconciled Balance as of August 31, 2010 Bank Balance as of September 1, 2010 Add: Deposits to Checking Account Add: Transfers from Investment Account Add: Other Credits Less: Cancelled Checks Less: Transfers to Investment Less: ACH Debits Bank Balance as of September 30, 2010 Less: Outstanding Checks Less: Retirement Check Run Bank Errors Reconciled Balance as of September 30, 2010 Bank Balance as of October 1, 2010 Add: Deposits to Checking Account Add: Transfers from Investment Account Add: ACH Credit Less: Cancelled Checks Less: Transfer to Investment Less: ACH Debits Bank Balance as of October 31, 2010 Less: Transfers into Checking Account Less: Outstanding Checks Less: Retirement Check Run Bank Errors Reconciled Balance as of October 31, 2010 807,459.13 481,54.41 1341.54 e (238,19g63) (695,664J3) $ 199,210.10 (111,78�1.40) (70,41.21) (16,93.49) Requisitions Mr. Namie stated that requisitions for the months of August, September, and October 2010 totaled $1,566,628.22. 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; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. Sold By IMR Limited Form 825 E Check . Payee 274 Claudia H. Hamilton 275 Scott A. Belcastro 276 Tina M. Clemens 277 Shantel Fairbanks 278 Debra Ann Gilbert 279 Heidi Harbaugh 280 PNC as trustee of IRA of Robert N. Heinz 281 Lisa Keil 282 Irma L. Rawle 283 Sharma L. Ross 284 Christina Sweeney 285 Asa R. Winters 286 Charleroi Federal Savings Bank as trustee of IRA of John M. Marcischak 287 Capital Bank & Trust as trustee of IRA of Patricia L. Berdine 288 Washington County Cash Disbursement Account 289 Washington County Regular Payroll Escrow Account Transfer PNC Bank Transfer Washington County Retirement Account Total August 2010 Distributions September 2010 Check Payee 290 Lorena M. Craig 291 Mark A. Kelley 292 Heather Shriver 293 Jana R. Stump 294 SB&T as trustee of IRA of Jonathan J. Teacoach 295 Stifel Nicolaus as trustee of IRA of Nancy L. Mizia 296 Rebecca J. Patterson 297 Washington County Regular Payroll Account 298 Washington County Cash Disbursement Account Transfer PNC Bank Transfer Washington County Retirement Account Total September 2010 Distributions October 2010 Check Payee 300 Estate of Angela J. Alampi 301 Karen Beck 302 Michael Cruny Amour 3,307. 4,780. 16,606. 1,298. 4,011. 766. 2,269. 4,694. 58. 1,780. 2,389. 2,405. 81,773. 29,407. 11,544. 4,137. 23,862. 7,791.(8 5,421.(6 384. 0 5,208.39 7,043.f 4 69,556. 4 69,742. 8 4,236. 6 18,629. 2 36,547. 7 38.041. 2 Amo n 80.16 3,575.95 1,656. 8 21150 304 Michael A. Chicora 1,02�,.21 305 Tanya Young 2,100t..84 306 David S. Beveridge 44,99.50 307 Washington County Cash Disbursement Account 61,684.82 308 Washington County Regular Payroll Escrow Account 4,34.09 Transfer PNC Bank 28,264.26 Transfer Washington County Retirement Account 333 67 1.30 Total October 2010 Distributions S 481._54141 Old Business None. New Business Mr. Maggi called for a motion to approve a request from Donald Jones to buy back per diem status time from June 12, 1987 to February 7, 1993 in the amount of $4,714.43, The motion was made by Mr. Burns and seconded by Mrs. Irey Vaughan. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. Mr. Maggi called for a motion to approve a request from Danielle L. Patterson to buy back per diem status time from October 22, 2009 to July 21, 2010 in the amount of $145.96. The motion was made by Mr. Burns and seconded by Mrs. Irey Vaughan. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. Mr. Maggi called for a motion for the ratification of an MOU dated October 21, 2010 for the approval of a request by David S. Beveridge to buy back unpaid leave of absence time from July 18, 1991 to October 18, 1991 at a cost of $479.34. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. It was noted for the record of an agreement with Danielle L. Patterson to purchase service credit dated December 12, 2000 to November 25, 2003 in the amount of $6,675.97 and January 3, 2006 to June 16, 2006 in the amount of 1,133.76 for a total cost of $7,809.73. 1 n 1 'J 1 Emerald Advisors — Tom Datillo/David Chu Mr. Datillo gave a general overview of the economy and the stock market and then turned the presentation over to Mr. Chu. Mr. Chu stated that Emerald had a very good 3rd quarter, up 16 1/2% versus the benchmark of 14 '/z%. In order to correct some 2"d quarter underperformance, Emerald was very aggressive in the 3rd quarter, a bet which paid off well in returns. Looking forward, Mr. Chu expects retail sales to contribute to a decent 4th quarter and stated that Emerald will continue with vigilance and adherence to their company philosophies and processes to achieve consistent performance. Peirce Park — Lee Martin Mr. Martin opened with an update on Peirce Park stating that over the past year, they have added 3 new accounts and now have over $4 billion in assets under advisement. He also introduced Ms. Sarah Wilson, who will be heading up Peirce Park's new Pittsburgh office. Mr. Martin gave a brief 3rd quarter market environment summary stating that the GDP dropped to 1.7% and that the economy lost more jobs. However, over the past year, the economy has added over 600,000 jobs. Unemployment is still very high, but the job market has picked up slightly. The stock market was up 11 % for the quarter with international outperforming the domestic market. Fixed income continued to grow, up 2.5% for the quarter and 8% for the year to date. Financials, which were up in the 2nd quarter, were down sharply in the 3`d. Emerging markets are expected to account for 65% of global growth next year. The County's portfolio was up 9% for the quarter, up 9.5% for the year, and up 11.5% for the current period to date. Over the last year, the portfolio gained about $10 million, bringing the total portfolio to just short of $100 million. Discussing the individual manager's performances, Wells Fargo was behind last quarter and slightly behind for the year but ahead for the 5-year. Emerald has done well as a mid -cap manager. C.S. McKee has struggled on the core side — the process they use for the value side doesn't work as well on the core side. Mr. Martin stated that the Board may want to possibly move C.S. McKee back to value where they do exceedingly well. On the fixed income side, both Federated and C.S. McKee have done very well. Dodge and Cox has done well as an international manager, up 4% versus the benchmark. Artio's performance has been middle of the road, which bears a closer look. Looking at real estate, DWS has underperformed slightly; the Board may want to look at utilizing an index fund. Mr. Martin gave the Board three options to restructure the portfolio, suggesting that the first step be performing a global manager search. A motion was made by Mr. Burns and seconded by Mr. Namie authorizing Mr. Martin to begin searching for a global manager. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. Of the three options presented by Mr. Martin to restructure the portfolio, Mr. Namie made a motion to accept Option C. The motion was seconded by Mr. Burns. No discussion followed. 215 2 i Mr. Namie — yes; Mr. King — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. Option C is as follows: Value Core Growth Large Cap C.S. McKee — 20.5% Twin — 10.7% Mid Cap C.S. McKee SMID — 10.0% Emerald — 5.8% Small Cap Real Estate Vanguard — 4.0% Global Global Core/Growth — 11.0% International Dodge & Cox — 6.0% Fixed Income Federated —15.3% C.S. McKee — 15.8% The Board asked Mr. Martin to make all changes possible to achieve Option C until the global manager search was completed. Mr. Martin assured the Board that he would do so. The meeting was adjourned at 11:55 a.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: 2011 ATTEST: 1 1 E