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Home My WebLink AboutCOMM - 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) 1 i 1] 1 � z: 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 1 2617 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. 1 1 1 WWIQRI nali 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. 1