HomeMy WebLinkAboutCOMM - Meeting Minutes - 239 - 8-11-2011 - RETIREMENT2613
Mr. I 4artin began with a review of the market environment. Performance was strong for the quarter
with the S& up about 6%, indicative of a strengthening economy. Other signs include strong improvements
in the job m rket and a reduction in household, business, and credit card debt. Unemployment is down about
1 % since las, year and currently stands at 8.8%. The historical average is about 6.6%, so there is still room for
improverner The next significant improvement will be when the big blue chips start to hire, which probably
should be in 2012. With consumer and business debt decreasing, banks will begin to relax their credit
requirement . This in turn will result in increased spending. As expected, however, inflation is on the rise, up
about 2% o r the last quarter. Having TIPS in your portfolio is very important in this type of market
environmen to protect against the effects of inflation.
For
the year to c
Washingtor
million and
C.S. McKef
risk. Emer<
the real estz
since
decently
The
e performance review, the fund was up 4.4% for the quarter, well above the policy index. As of
te, the fund was at $103 million, a gain of $4 million over the last quarter. This places
ounty in the 28th percentile of all public funds. Over the last 3 years, the fund has gained $13.6
36 million over the last 7 years. For the quarter, there was good performance from Twin Capital,
and Emerald Advisors. Twin Capital added nearly 1 % for the quarter without taking on a lot of
1, which tends to do well in down markets, was up 3%. The REIT index continues to do well as
market continues to improve. Dodge and Cox was down for the quarter but remains positive
in. On the fixed income side, C.S. McKee has done slightly better than the benchmark due to an
in TIPS. Federated Investors is tight with the benchmark. All in all, the County's portfolio is
tioned and balanced well.
was adjourned at 11:45 a.m.
I THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL:
ATTEST: d`A
2011
Minute No. 239 Washington County Retirement Board
Washington, PA August 11, 2011
The quarterly meeting of the Washington County Retirement Board was held at
approximately 11:25 a.m. on Thursday, August 11, 2011 in the Public Meeting Room with the
following members being present: Commissioners Larry Maggi, J. Bracken Burns, and Diana
Irey Vaughan; Deputy Controller Joshua Hatfield; and Treasurer Francis L. King. Also
present: Chief Clerk Mary Helicke; Secretary Linda Belcher; Director of Finance Roger
Metcalfe; Financial Analyst Irene Farabee; concerned citizen Frank Byrd; Observer -Reporter
representative Barbara Miller; Chris Erfort and Andy Balog representing Twin Capital
Management; and Lee Martin and Sarah Wilson representing Peirce Park.
Approval of Minutes
Mr. Maggi entertained a motion to approve Minute No. 238 dated May 19, 2011. The
motion was moved by Mrs. Irey Vaughan and seconded by Mr. Burns that the above
mentioned minutes be approved as written.
No discussion followed.
Roll call vote taken:
Mr. King — yes; Mr. Hatfield — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr.
Maggi — yes.
Motion passed unanimously.
Public Comment
None.
Treasurer's Report
Mr. King stated that for May, June, and July 2011, the bank balance was reconciled to
zero. It was moved by Mr. King and seconded by Mrs. Irey Vaughan that the report be
approved.
No discussion followed.
Roll call vote taken:
Mr. King — yes; Mr. Hatfield — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr.
Maggi — yes.
Motion passed unanimously.
Retirement Allowance Report
Bank Balance as of May 1, 2011
Add: Deposits to Checking Account
Add: ACH Credit
Less: Cancelled Checks
Less: Other Debits
Less: ACH Debits
Bank Balance as of May 31, 2011
Less: Outstanding Checks
Less: Retirement Check Run
$ 90,046.31
880,765.81
123.16
(140,048.83)
(387,705.34)
(367,773.26)
$ 75,407.85
(58,526.69)
(16,881.16)
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Sold By IMR
Bank Balance as of June 1, 2011 $
75,407.85
Add: Deposits to Checking Account
722,399.65
Less: Cancelled Checks
(93,893.33)
Less: Transfer to Investment
(137,302.96)
Less: ACH Debits
(374,163.76)
Bank Balance as of June 30, 2011 $
192,447.45
Less. Outstanding Checks
(177,144.26)
Less: Retirement Check Run
(15,303.19)
Reconciled Balance as of June 30, 2011 $
-0-
Bank Balance as of July 1, 2011
$ 192,447.45
Add: Deposits to Checking Account
723,155.20
Less: Cancelled Checks
(257,771.03)
Less: Transfer to Investment
(180,590.59)
Less: ACH Debits
(360,244.86)
Bank Balance as of July 31, 2011
$ 116,996.17
Transfers into Checking Account
(3,371.55)
Less: Outstanding Checks
(85,622.35)
Less: Retirement Check Run
(28,002.27)
Reconciled Balance as of July 31, 2011
$ -0-
Requisitions
Mr. Hatfield stated that requisitions for the months of May, June, and July 2011
totaled $1,620,721.77.
It was moved by Mr. Hatfield and seconded by Mr. King that the requisitions be approved.
No discussion followed.
Roll call vote taken:
Mr. King — yes; Mr. Hatfield — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr.
Maggi — yes.
Motion passed unanimously.
May 2011
Check
Payee
381
Pamela Bussey
382
PNC Investments as Trustee of the IRA of William Darrall
383
Glory Duff
384
Justin D. Hamborsky
385
Marie M. Hutchinson
387
Kelly Paolino
388
Michael S. Stapleton
389
Rudolph Yurkovich
390
Washington County Regular Payroll Escrow Account
14
Amount
5,895.45
12,523.13
1,012. 1
4,915. 5
117. 3
1,221. 1
8,632.24
18,884.(0
5,416.(6
2 16 6
392 American Fd Acct #xxxx8366 as trustee of IRA of Kathleen Lignelli 4,48.35
-
393 Washington County Cash Disbursement Account 44,04J.58
Transfer PNC Bank 30,8A.76
Transfer Washington County Retirement Account 354 67 ..07
Total May 2011 Distributions S 493,066.47
June2011
Check
Payee
Amont
394
Jonette H. Gallo
Il
$ 24,624.76
9r
395
Patricia Knowlson
6,72.33
396
Marcia McConnell
46 �.32
397
Kristen McCracken
5,83.27
398
Nicole McDonough
54.90
399
Margaret Powers
39�'1.58
400
Aaron W. Smith
59.46
401
Andrea N. Stack
5,721197
402
Erica J. Uhlman
3,321;
403
TR Price FBO Albert P. Veverka
1f
8,181165
404
Cynthia B. Griffin
24,OOdi00
405
PNC Investments LLC FBO Cynthia B. Griffin
26,3811139
407
TIAA-CREF FBO Nicholas P. Dubina Sr.
58,036184
406
Washington County Regular Payroll Escrow Account
5,381198
408
Washington County Cash Disbursement Account
24,11 55
Transfer
PNC Bank
38,511071
Transfer
Washington County Retirement Account
352,2359
Total June 2011 Distributions
5 585,096 699
July 2011
a
Check
Payee
'4
Am000t
410
Estate of Dorothy E. Atchison
$ 10Q} 6
411
Jackson National Life as trustee of IRA of Patricia J. Aloia
68,4781116
412
Suzanne Dugan
22215
413
USAA Family of Funds FBO Amber Forney
2,231 #F5
414
Anne Holmes
14,081 62
415
Primerica Shareholder Svcs as Trustee of IRA of Steven J. Jury
999102
416
Carmen Miller
2,20369
417
Angela Lohr
483 �0
418
Aubrey Poland
l l7.90
409
Washington County Cash Disbursement Account
65,153 �3
419
Washington County Regular Payroll Escrow Account
2
5,573 4
Transfer
PNC Bank
25,193.3
Transfer
Washington County Retirement Account
S
357 725a 6
t
Total July 2011 Distributions
S 542.56441
1
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Sold By IMR Limited Form 825 E00102204
None.
New Business
Mr. Maggi called for the ratification of an MOU dated June 21, 2011 for the approval
of a disability pension request by Sharon Pridgen. Ms. Pridgen was approved to receive a
Social Security disability pension effective March 2011. Her County disability pension would
become effective retroactive to June 16, 2011. The motion was made by Mr. Burns and
seconded by Mrs. Irey Vaughan.
No discussion followed.
Roll call vote taken:
Mr. King — yes; Mr. Hatfield — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr.
Maggi — yes.
Motion passed unanimously.
Mr. Maggi called for a motion to approve a request by Sharon Vasquez to buy back
per diem service time dated June 19, 1995 to April 15, 1996 in the amount of $1,099.17. The
motion was made by Mr. Burns and seconded by Mrs. Irey Vaughan.
No discussion followed.
Roll call vote taken:
Mr. King — yes; Mr. Hatfield — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr.
Maggi — yes.
Motion passed unanimously.
Mr. Maggi called for a motion to approve a request by Gina Manfredi Zacios to buy
back unpaid leave of absence time dated March 15, 2010 to July 20, 2010 in the amount of
$2,725.88. The motion was made by Mr. Burns and seconded by Mrs. Irey Vaughan.
No discussion followed.
Roll call vote taken:
Mr. King — yes; Mr. Hatfield — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr.
Maggi — yes.
Motion passed unanimously.
Mr. Maggi called for a motion to approve a request by Lucille Redd to buy back
unpaid leave of absence time dated February 28, 2005 to April 17, 2005 and January 4, 2011
to April 29, 2011 in the amount of $2,216.45. The motion was made by Mr. Burns and
seconded by Mrs. Irey Vaughan.
No discussion followed.
Roll call vote taken:
Mr. King — yes; Mr. Hatfield — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr.
Maggi — yes.
Motion passed unanimously.
Mr. Maggi called for a motion to approve a request by Al Marcy to buy back unpaid
leave of absence time and per diem service time dated May 20, 1991 to February 9, 1993 in
the amount of $2,054.10. The motion was made by Mr. Burns and seconded by Mrs. Irey
QW
No discussion followed.
Roll call vote taken:
Mr. King — yes; Mr. Hatfield — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr.
Maggi — yes.
Motion passed unanimously.
Presentations
Twin Capital Management — Andy Balog/Chris Erfort
Mr. Balog began with a company overview stating that the investment team at Twin
Capital Management has remained stable for the past twelve and a half years. He then turned
the presentation over to the portfolio manager, Mr. Chris Erfort. Mr. Erfort stated that for the
period January 1, 2011 to July 31, 2011, Twin Capital outperformed the benchmark by 98
basis points with returns of 5.04% vs. the benchmark of 4.06%. Currently, the largest
underweight in the portfolio is financial and the largest overweighting is to consumer staples,
a strategy that serves the portfolio well and one that Twin Capital will continue. The strategy
that the County is currently in, Twin Prime, has outperformed 6 out of the last 7 years. This
strategy is a little more focused that the previous strategy and takes on a little more risk, but it
has been a good move for the County.
Peirce Park — Lee Martin
Mr. Martin began with a brief overview of the market environment stating that while
there was some growth in the market early on, the quarter ended flat. High prices led to low
consumer spending. Some pluses did come from the economy stalling — energy prices fell as
did oil prices. Corporations are sitting on a large amount of cash and are unwilling to spend it
in this type of environment. If the U.S. Government comes up with a clear cut economic plan,
however, Mr. Martin feels that the 4th quarter of 2011 could be a strong one.
For the performance review, the fund was up about 1 % for the quarter. Considering
the market environment, this is not only a reflection of how well the managers did, but also
indicative of the positive impact the Board's changes were to the portfolio at the beginning of
the year. For the quarter year-to-date, the market is down about 13%; Washington County is
down about 7%2%. The current fund value stands at $96 million, down from $103 million a
year ago.
Looking at individual manager performance, Twin Capital has done very well, as has
C.S. McKee large cap value. In the s-mid value space, C.S. McKee underperformed in the
first part of the year but has done well since in the down market. Emerald has done
exceptionally well for the County this year. Real estate is in line with the benchmark, but, as
a precautionary note, the real estate market has begun to turn down. The global funds are also
on target with their benchmarks. Fixed income is slightly behind the index. With this in
mind, Mr. Martin mentioned to the Board that they might want to consider rebalancing back
to the policy index. Currently, fixed income is at about 36% vs. the target policy index of
32%. Mr. Martin recommended a slight rebalancing now, leaving room if necessary at a later
date. His recommendation was rebalancing from fixed income to the global core growth fund
thereby giving the County increased exposure in the domestic and international core growth
area and also bringing the portfolio closer to target.
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week coming from the fixed income manager that is the most liquid. The motion was
seconded by Mrs. Irey Vaughan.
A brief discussion followed.
Roll call vote taken:
Mr. King — yes; Mr. Hatfield — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr.
Maggi — yes.
Motion passed unanimously.
Mr. Hatfield noted for the record that the 2010 Retirement Fund audit was complete
and contained no findings.
The meeting was adjourned at 12:40 p.m.
THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL:
Iy 0 Vb"1 I C� , 2011
ATTEST:
(' 0_
Minute No. 240 Washington County Retirement Board
Washington, PA November 17, 2011
The quarterly meeting of the Washington County Retirement Board was held at approxin
10:50 a.m. on Thursday, November 17, 2011 in the Public Meeting Room with the following me
being present: Commissioners Larry Maggi, J. Bracken Burns, and Diana Irey Vaughan; Contro
Michael Namie; and Treasurer Francis L. King. Also present: Chief Clerk Mary Helicke; Secre
Linda Belcher; Director of Finance Roger Metcalfe; Director of Administration Scott Fergus; Re
of Deeds Deborah Bardella; concerned citizens Frank Byrd, Carl Maggi, and John Adams; Obse:
Reporter representative Barbara Miller; Tom Datillo and David Volpe representing Emerald Ad`
Gene Natali, Jr. representing C.S. McKee; and Lee Martin and Sarah Wilson representing Peirce
Approval of Minutes
Mr. Maggi entertained a motion to approve Minute No. 239 dated August 11, 2011. The
t
motion was moved by Mr. King and seconded by Mr. Namie that the above mentioned minutes bid
approved as written.
No discussion followed.
Roll call vote taken:
iy
ers
der
rs;
•k.
Mr. Namie — yes; Mr. King — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr. Maggi }4 yes.
Motion passed unanimously. j
Public Comment
Mr. Adams made some general comments about the Retirement Fund.
Treasurer's Report
�p
Mr. King stated that for August, September, and October 2011, the bank balance was
reconciled to zero. It was moved by Mr. King and seconded by Mrs. Irey Vaughan 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
Motion passed unanimously.
Retirement Allowance Report
Bank Balance as of August 1, 2011
$ 116,996.17
Add: Deposits to Checking Account
724,195.72
Less: Cancelled Checks
(152,832.68)
Less: Transfer to Investment
(174,390.62)
Less: ACH Debits
(388,695.94)
Bank Balance as of August 30, 2011
$ 125,272.65
Less: Transfers to Checking Account
(3,375.51)
Less: Outstanding Checks
(102,019.11)
Less: Retirement Check Run
(19,878.03)
Reconciled Balance as of August 30, 2011
$ -0-
yes.
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