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HomeMy WebLinkAboutCOMM - Meeting Minutes - 242 - 5-17-2012 - RETIREMENT�u Sold By INIR Limited Fom, 825 E00'02204 n 1 1 Minute No. 242 Washington County Retirement Board Washington, PA May 17, 2012 The quarterly meeting of the Washington County Retirement Board was held at approximately 11:10 a.m. on Thursday, May 17, 2012 in the Public Meeting Room with the following members being present: Commissioners Larry Maggi, Harlan Shober, and Diana Irey Vaughan; Controller Michael Namie; and Treasurer Francis L. King. Also present: Chief Clerk Mary Helicke; Secretary Joyce Thornburg; Director of Finance Roger Metcalfe; Director of Administration Scott Fergus; Solicitor Lynn DeHaven; concerned citizens Frank Byrd, John Ad, and Harry Sabatasse; Observer -Reporter representative Barbara Miller; Gene Natali, Jr. representing C.S. McKee; and Lee Martin representing Peirce Park. Approval of Minutes Mr. Maggi entertained a motion to approve Minute No. 241 dated February 16, 2012. motion was moved by Mrs. Irey Vaughan and seconded by Mr. Shober that the above mentioned minutes be approved as written. No discussion followed. Roll call vote taken: yes. Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi Motion passed unanimously. Public Comment Mr. Harry Sabatasse asked Mr. Maggi to please be considerate and not converse with his colleagues while someone else is speaking. Mr. John Adams requested that the Commissioners consider rescinding their annual cost living raises as this in turn will result in higher pension costs. Treasurer's Report Mr. King stated that for February, March, and April 2012, the bank balance was to zero. It was moved by Mr. King and seconded by Mr. Namie that the report be approved. No discussion followed. Roll call vote taken: yes. Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi Motion passed unanimously. Retirement Allowance Report Bank Balance as of February 1, 2012 Add: Deposits to Checking Account Add: Transfers from Investment Account Add: ACH Credit Less: Cancelled Checks Less: ACH Debits Bank Balance as of February 29, 2012 Less: Outstanding Checks i Less: Retirement Check Run r Reconciled Balance as of February 29, 2012 Bank Balance as of March 1, 2012 Add: Deposits to Checking Account Add: Transfers from Investment Account Less: Cancelled Checks Less: ACH Debits Less: Other Debits Bank Balance as of March 31, 2012 Transfers into Checking Account Less: Outstanding Checks Less: Retirement Check Run Reconciled Balance as of March 31, 2012 Bank Balance as of April 1, 2012 Add: Deposits to Checking Account Transfers from Investment Account Less: Cancelled Checks Less: ACH Debits Bank Balance as of April 30, 2012 Transfers into Checking Account Less: Outstanding Checks Less: Retirement Check Run Reconciled Balance as of April 30, 2012 $ 83,692.27 233,705.56 249,801.64 1,284.46 (156,382.87) (381,680.36) $ 30,420.70 (17,440.85) (12,979.85) $2 $ 30,420.70 355,404.68 3 141,838.59 (71,853,79) ii (388,677.98) i. (1.52) °f $ 67,130.68 1,965.52 (49,052.64) i (20,043.56)_ E $ -0- $ 67,130.68 243,965.60 337,902.22 (144,941.05) (395,900.53) $ 108,156.92 1,965.52 (92,635,84) (17,486.60) $2 Mr. Namie stated that requisitions for the months of February, March, and April 2012 r totaled $1,562,618.29. i 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. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi — 1 1 1 283 Sold By IMR Limited Form 825 E001 02204 Motion passed unanimously. February 2012 Check Payee Amount 514 Estate of Elmer George $ 4. 2 515 John Filson 3,95635 516 Gerald L. McNeal 5,264. 8 513 Washington County Cash Disbursement Account 69,252. 1 517 Washington County Regular Payroll Escrow Account 6,83835 Transfer PNC Bank 24,32816 Transfer Washington County Retirement Account 373,861.73 Total February 2012 Distributions S 483,507.iQ Aii.____L 1n111 Check Payee Amou t 518 Dawn Fassett $ 6,743. 4 519 James C. Davis 34,789.12 520 Ameritrade as trustee of IRA of Benjamin James Benney 670. 8 521 Patricia Gordon 163.()7 522 Chastity S. Hoover 6,63115 523 Alicia Kuhn 4,123.(6 524 Julie Mounts 12,313. 3 525 Constance Salyers 200. 0 526 Washington County Regular Payroll Escrow Account 5,44410 527 Washington County Cash Disbursement Account 20,231.05 Transfer PNC Bank 30,500.90 Transfer Washington County Retirement Account 375 430. 7 Total March 2012 Distributions 7 4 7 April 2012 Check Payee Amon t 528 Donald K. Dorisio 1,531. 8 529 Merrill Lynch as trustee of IRA of Donald K. Dorisio 82,007. 4 530 Vanguard as trustee of IRA of Brett Harkreader 629. 9 531 Ronald Levi 14,393. 2 532 Slovenian Savings and Loan as trustee of IRA of Sandra 54,105.38 Salerno 533 Washington County Cash Disbursement Account 19,987. 8 534 Washington County Regular Payroll Escrow Account 6,069. 1 Transfer PNC Bank 25,88U 9 Transfer Washington County Retirement Account 385,648.16 Health Care Credit Adjustment (8,395. 3) Total April 2012 Distributions S 581,867, 284 2' it None. Mr. Maggi noted the following items for the record: Angela Bodnar agreement to purchase service credit dated August 18, 1986 to June 15, 1989 the amount of $2,140.62. Active military duty retirement contribution on behalf of Thomas Jess for the period March ., 2011 to June 17, 2011 in the amount of $911.50. Active military duty retirement contribution on behalf of Marshall Palmer, Jr. for the period 4, 2011 to January 6, 2012 in the amount of $1,109.09. Mr. Maggi entertained a motion for the approval of the revised Washington County ' Retirement System Summary Plan Description. The motion was moved by Mr. Shober seconded by Mrs. Irey Vaughan. No discussion followed. >ll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi — s. Motion passed unanimously. S. McKee — Mr. Natali began his presentation with some good news, stating that in a ranking of the top fixed income managers of the past 10 years, C.S. McKee placed second. This is not only a t to C.S. McKee, but also to the County as well. C.S. McKee has been able to maximize the aty's return while keeping risk to a minimum. Moving on to a performance discussion, Mr. Natali began with large -cap value, stating that s performed well despite a 6 basis point underperformance for the year. This underperformance confined to the 4th quarter of 2011 when the market panicked into high dividend -yield stocks. -e is currently a 17% growth tilt in the portfolio, justified by the fact that growth stocks are p as measured versus value stocks. C.S. McKee is confident that this growth tilt strategy will until the market kicks back into balance. Turning to smid-cap value, Mr. Natali stated that C.S. McKee's severe underperformance been disappointing and can be solely attributed to poor stock selection. Mr. Martin observed C.S. McKee's smid-cap value holdings are very concentrated and that significant can result from even one or two names underperforming. He asked Mr. Natali if S. McKee would consider putting some risk controls in place or adding diversification to prevent situation from occurring in the future. Mr. Natali stated that C.S. McKee minimizes risk by including good, high quality stocks and that having a concentrated portfolio is an intentional of active management. The disadvantage of active management is that there will always be 1 1 of underperformance. Mr. Natali assured the Board that this underperformance was not due MUs Soid By IMR Limited Form 825 E00102204 to any breakdown within the firm or their processes. Peirce Park — Lee Martin Mr. Martin began his presentation with a I" quarter overview, stating that the S & P is up 100% since it bottomed out in March 2009. Unemployment fell to 8.2%, corporate lending is on the increase, and even though inflation bumped up a bit, it is still relatively low. Consumer loans fell, signifying that people are still cautious, but auto sales were up about 13% due to a mixture of sales incentives, low interest rates, and an increase in hybrid sales. The U.S. is not in a period of economic expansion yet, but the signs are there. As for the performance summary, the County's fund was up 9.2% for the quarter, a gain o. $9.2 million, and outperformed the benchmark by 70 basis points. With the exception of C.S. McKee's smid product, all of the active managers outperformed for the quarter. Mr. Martin mentioned that Federated Investors would like to address the Board about the short-term possibility of adding a few high yield and international bonds in markets where they fe adding them would be beneficial. The investment policy statement would have to be revised to reflect this change and Mr. Martin stated that he would also suggest limiting the percentage that Federated would be allowed to invest. Mr. Martin also addressed the Board regarding C.S. McKee's smid cap product, stating th, it has underperformed all 5 quarters in a row since inception. For the current quarter to date, it is already 400 basis points behind the index, putting it 8% behind since inception. Mr. Martin suggested three options to the Board: leaving things as they are and monitoring C.S. McKee's performance weekly; leaving the money with C.S. McKee until a new small cap manager can be found; or putting the money in an index fund until a new small cap manager can be found. After a brief discussion, Mr. Maggi entertained a motion to terminate the smid cap strateg; with C.S. McKee and have Mr. Martin work with Mr. Namie to compile a list of names for a new small cap manager as well as select an index fund for the temporary transfer of funds. A special meeting would be held to hear presentations for both a small cap manager and a GTAA manager. The motion was made by Mr. King and seconded by Mrs. Irey Vaughan. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi yes. Motion passed unanimously. Mr. Martin suggested four names to be considered for the County's GTAA manager: ME Wells Fargo, Pimco, and B1ackRock. After a brief discussion, the Board asked him to set up presentations with MFS, Wells Fargo, and Pimco. The meeting was adjourned at 12:00 p.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: j'J,/ � Y .2012 ATTEST:��'`'�". s Minute No. 243 SP Washington County Washington, PA ireme#lt Board July ail, 2012 A special meeting of the Washington County Retirement Board was held at approximately on Wednesday, July 11, 2012 in the 7' Floor Conference Room with the following members being Commissioners Larry Maggi, Harlan Shober, and Diana Irey Vaughan; Controller Michael Namie; Treasurer Francis L. King. Also present: Chief Clerk Mary Helicke; Secretary Joyce Thornburg; Lynn DeHaven; Director of Finance Roger Metcalfe; and Lee Martin and Sarah Wilson representir. Pierce Park. Approval of Minutes Mr. Maggi entertained a motion to approve Minute No. 242 dated May 17, 2012. The moved by Mr. King and seconded by Mrs. Irey Vaughan that the above mentioned minutes be written. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi Motion passed unanimously. Public Comment None. Old Business None. New Business Mr. Maggi entertained a motion to approve an Addendum to the Washington County Invi Policy Statement calling for changes to asset allocation targets, domestic equity limits, internatio equity limits, domestic fixed limits, real estate limits, and the addition of global tactical asset alk investment guidelines. The motion was moved by Mrs. Irey Vaughan and seconded by Mr. Sho No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi Motion passed unanimously. The Addendum as approved is attached. Mr. Maggi entertained a motion to approve the hiring of MFS Institutional Advisors, Inc. a; County's Global Tactical Asset Allocation Manager, with an initial 5% allocation originating from McKee Large Cap Value Account. The motion was moved by Mrs. Irey Vaughan and seconded b, Namie. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi Motion passed unanimously. 30 p.m. esent: d icitor was P01 �es. t 'global 31 C.S.