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Home My WebLink AboutCOMM - Meeting Minutes - 240 - 11-17-2011 - RETIREMENTSold By IMR Limited Form 825 EOC', Aus 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: � 0 V 1C� 92011 ATTEST: Minute No. 240 Washington County Retirement Board' Washington, PA November 17, 2011 The quarterly meeting of the Washington County Retirement Board was held at approxi 10:50 a.m. on Thursday, November 17, 2011 in the Public Meeting Room with the following m being present: Commissioners Larry Maggi, J. Bracken Burns, and Diana Irey Vaughan; Contr Michael Namie; and Treasurer Francis L. King. Also present: Chief Clerk Mary Helicke; Secr Linda Belcher; Director of Finance Roger Metcalf • Dir ector erector of Administration Scott Fergus; c e us• R g g , of Deeds Deborah Bardella; concerned citizens Frank Byrd, Carl Maggi, and John Adams; Obsi Reporter representative Barbara Miller; Tom Datillo and David Volpe representing Emerald Adv.11sers; Gene Natali, Jr. representing C.S. McKee; and Lee Martin and Sarah Wilson representing Peirce Park. Approval of Minutes Mr. Maggi entertained a motion to approve Minute No. 239 dated August 11, 2011. The #' f 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: Mr. Namie — yes; Mr. King — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr. Maggi yes. Motion passed unanimously. Public Comment ?E Mr. Adams made some general comments about the Retirement Fund. Treasurer's Report 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 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 Add: Deposits to Checking Account Less: Cancelled Checks Less: Transfer to Investment Less: ACH Debits Bank Balance as of August 30, 2011 Less: Transfers to Checking Account Less: Outstanding Checks Less: Retirement Check Run Reconciled Balance as of August 30, 2011 $ 116,996.17 724,195.72 (152,832.68) (174,390.62) (388,695.94) $ 125,272.65 (3,375,51) (102,019.11) (19,878.03) $ -0- yes. 1 1 i Sold By [MR Limited Form 825 EC" 02204 k Balance as of September 1, 2011 $ 125,272.65 Deposits to Checking Account 837,347.55 Cancelled Checks (133,669.39) Transfer to Investment (281,199.96) ACH Debits (373,482.89) c Balance as of September 30, 2011 $ 174,267.96 Outstanding Checks (148,718.89) Retirement Check Run (25,549.07) )nciled Balance as of September 30, 2011 $ -0- Ba k Balance as of October 1, 2011 $ 174,267.96 A : Deposits to Checking Account 728,206.22 Less: Cancelled Checks (245,357.34) Le Transfer to Investment (147,647.23) LeACH Debits I (387,864.43) BBalance as of October 31, 2011 $ 121,605.18 Less: Outstanding Checks (102,230.37) Leis: Retirement Check Run (19,374.81) Re ronciled Balance as of October 31, 2011 $ 2 r. Namie stated that requisitions for the months of August, September, and October 2011 totaled $1,689,887,19. It was oved by Mr. Namie and seconded by Mr. Burns that the requisitions be approved. o discussion followed. Roll c 1 vote taken: r. Namie — yes; Mr. King — yes; Mrs. Irey Vaughan — yes; Mr. Burns — yes; Mr. Maggi — yes. otion passed unanimously. .19 0 0 0 43 August 2011 Payee Janie N. Southworth Fern Jo Kaukonen Dale Ray Kaukonen Jesse Pettit Jackie Sue Bird Scott Joseph Falcione Jr. Benjamin M. Engles Sally S. Greiner Robert William Mary III James Elias Molinaro R Amount 21,848.21 57.33 57.33 7,145.77 4,392.67 7,669.28 11,176.85 26,113.15 577.21 5,249.37 27 2 432 Carl A. Robaugh, Jr. 26,485.23 433 Edward E. Smith 566.28 434 Bethany Kay Tobias 1,606.78 435 Michelle A. Trapuzzano 3,848.61 436 Washington Co. Cash Disbursement Account 20,863.77 437 Washington County Regular Payroll Escrow Account 5,474.56 Transfer PNC Bank 49,635.77 Transfer Washington County Retirement Account 356,112.18 Total August 2011 Distributions 1549.805.10 September 2011 Check Payee Amount 438 Jason Mossburg $ 5,475.04 439 PNC Investments as trustee of IRA of Howard R. Anderson 71,402.78 440 Cherie Cantie 2,086.98 441 Brian Dapra 9,376.87 442 Melissa Duley 2,368.05 443 Tracey Greathouse 6,991,50 444 Trustee of ARC Human Services Inc. FBO Kimberly Katruska 5,129.22 445 Jamie Livingston 1,575.07 446 Michael McBride, Jr. 2,857.17 447 First Federal S&L as trustee of IRA of Teresa J. Orum 2,493.15 448 Charles Schwab as trustee of IRA of Nicole Leigh Starr 1,331.46 449 Crystal Stilley 3,909.60 450 Margaret Victor 16,295.87 451 Clyde T. Wheeler 5,992.68 452 Washington County Regular Payroll 5,444.14 453 Washington County Cash Disbursement Account 20,850.53 Transfer PNC Bank 34,610.68 Transfer Washington County Retirement Account 361,332.31 Total September 2011 Distributions S 559,523.10 October 2011 Check Payee Amount 454 Dolores Mascara 463.88 455 Estate of Richard H. Grandy 125.61 456 Estate of Lillian Barkley 97.29 457 Estate of Jacquelyn Queen 27.04 458 Nicholas Chaney 255.74 459 Traia Cox 1,381.10 460 Edward Jones as trustee of IRA of Stacey 11,533.73 Gevenosky 461 NSS Life as trustee of IRA of Shannon Glaser 2,89319 1 1 1 713 F(3& By IMR Limited Form 825 E00102204 Janet I , i inureM 1 �63 Rickelle E. Groover 3,937.87 .64 Nationwide as trustee of IRA of Victor F. Lipari 10,000.00 .65 Victor F. Lipari 16,336.33 66 PNC as trustee of IRA of Joyce A. Nuccetelli 4,130.16 67 Holly Prati 7,467.72 68 Christy Rae Stanek 47,073.84 69 Washington County Disbursement Account 61,084.50 70 Washington County Regular Payroll Escrow Account 5,545.68 insfer PNC Bank 41,785.13 insfer Washington County Retirement Account 365,217.43 Total October 2011 Distributions S 580,558.99 None. N Emei is tiavisers —Tom Datillo/David Vol e Mr. Datillo began with a brief introduction, noting that both the management team and philo ophy of Emerald have remained fundamentally unchanged. He then turned the presentation over to Da id Volpe to discuss performance. Mr. Volpe stated that while performance was strong in the first e id second quarters, performance in the third quarter was worse than expected due to tremendous mark t volatility. The highest beta and highest growth names in the portfolio were down 34% for the quarter, with the Russell mid -cap growth index being down 19%. Health care and consumer staples perf6imed well, but energy, technology, and consumer durables underperformed, Since the end of the quarta r to current, however, the market has been favorable resulting in positive performance for the year- -date. Looking forward, Mr. Volpe stated that although market volatility is expected to c,ontir ae, Emerald is optimistic about future market performance and will continue on with their :urre strategy. C.S. cKee — Gene Natali Mr. Natali reiterated the previous comments concerning the volatility of the current market, stating that C.S. McKee's portion of the County's portfolio is currently up 1% after being down 10'/z% just a irionth and a half ago. The smid-cap portion of the portfolio is currently down 8% with the bench ark being down 4%2%. Fixed income, which has been the cornerstone of the portfolio in this marke environment, is up 6%. In the foreseeable future, there will be continued volatility and risk. U.S. easuries and U.S. TIPs have been the best performers and C.S. McKee's prognosis is that this will c tinue_ Mr. Martin asked Mr. Natali to discuss the underperformance in the smid-cap portfolio. Mr. Natali esponded that the underperformance was threefold: C.S. McKee's active decision not to own REITs the poor performance of the technology sector in general, and very specifically, the poor stock perfor ance of Southwest Bank Corp. due to the financial institution's unanticipated missing of a debt +Mr. Martin began his presentation with an overview of the market environment, stating that the beginn �g of the current market's volatility can be traced to the day that Standards and Poor OF drive down long-term rates and the leverage currently occurring in Europe. For the performance review, the County's fund lost 11.1% for the quarter. In October, the gained about 8% of that back. On the equity side, Twin Capital performed well. C.S. McKee struggled a bit on the smid cap side, mostly due to a small cap tilt. Emerald had a down quarter, performed well not only prior to the third quarter but also since the end of the quarter. As expect American Funds has had steady performance. Dodge and Cox's performance is more volatile in short run but steady in the long-term. On the fixed income side, both Federated Investors and C. McKee have continued to perform well. Because of the small cap tilt of C.S. McKee's smid product, Mr. Martin recommended 3% from smid value and transferring it to large cap value. It was moved by Mr. Burns and by Mr. Maggi to make the transfer. 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. Martin took the opportunity to discuss GTAA (global tactical asset allocation) with Board. GTAA involves giving a portion of a portfolio to a manager who has the flexibility to invOpt in whatever they believe is the best opportunity, within constraints, anywhere in the world. What thiN can do for the County is to give some exposure in currently unrepresented asset classes such as globalll fixed, emerging markets, and commodities. In order to do this, the Board would have to amend tl investment policy statement to include a set portion of the portfolio to be managed by GTAA. The Board asked Mr. Martin to provide more information at a future meeting. The meeting was adjourned at 11:55 a.m, THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: 2012 ATTEST v ' % 1 1