HomeMy WebLinkAboutCOMM - Meeting Minutes - 243 SP - 7-11-2012 - RETIREMENTUPWOR
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to any breakdown within the firm or their processes.
Peirce Park — Lee Martin
Mr. Martin began his presentation with a 1st 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
$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
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
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 strate
with C.S. McKee and have Mr. Martin work with Mr. Namie to compile a list of names for a
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:
yes.
Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr.
Motion passed unanimously.
Mr. Martin suggested four names to be considered for the County's GTAA manager:
Wells Fargo, Pimco, and BlackRock. 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:
ATTEST: �f t
2012
a
Minute No. 243 SP
Washington County
Washington, PA
July U 1, 2012
A special meeting of the Washington County Retirement Board was held at approximately 11 :30 p.m.
on Wednesday, July 11, 2012 in the 71h Floor Conference Room with the following members being resent:
Commissioners Larry Maggi, Harlan Shober, and Diana Irey Vaughan; Controller Michael Namie; end
Treasurer Francis L. King. Also present: Chief Clerk Mary Helicke; Secretary Joyce Thornburg; Solicitor
Lynn DeHaven; Director of Finance Roger Metcalfe; and Lee Martin and Sarah Wilson representin
Pierce Park. 3
Approval of Minutes
Mr. Maggi entertained a motion to approve Minute No. 242 dated May 17, 2012. The motic' n was
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moved by Mr. King and seconded by Mrs. Irey Vaughan that the above mentioned minutes be approved as
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written.
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No discussion followed.
Roll call vote taken:
Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi — �es.
Motion passed unanimously.
E;
Public Comment
None.
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Old Business
E
None. c
New Business
Mr. Maggi entertained a motion to approve an Addendum to the Washington County Invest ent
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G, Policy Statement calling for changes to asset allocation targets, domestic equity limits, internationa4global
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equity limits, domestic fixed limits, real estate limits, and the addition of global tactical asset allocation
investment guidelines. The motion was moved by Mrs. Irey Vaughan and seconded by Mr. Shobe
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No discussion followed.:
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Roll call vote taken:
Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi —sees.
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Motion passed unanimously.
The Addendum as approved is attached.
Mr. Maggi entertained a motion to approve the hiring of MFS Institutional Advisors, Inc. as(the
County's Global Tactical Asset Allocation Manager, with an initial 5% allocation originating from die C.S.
McKee Large Cap Value Account. The motion was moved by Mrs. Irey Vaughan and seconded by!Mr.
Namie.
No discussion followed.'
1 Roll call vote taken:
Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi —j�es.
Motion passed unanimously.
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the Count s Small Cap Manager. This allocation would come from the sale of the current Vanguard Small
Cap Value TF, with an additional 0.7% from the Vanguard REIT Index Signal Account. The motion was
moved by Ar. Namie and seconded by Mr. Shober.
No discussion followed.
Roll call vi Ite taken:
Mr Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi — yes.
M ion passed unanimously.
Mr. Maggi entertained a motion to rebalance the County's portfolio by transferring 0.5% from the C.S. McKee
Fixed Inco i ne Account and 0.5% from the Federated Fixed Income Account into the Dodge and Cox
International Account. The motion was moved by Mrs. Irey Vaughan and seconded by Mr. Shober.
No 1,
iscussion followed.
Roll call v to taken:
Mr Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi — yes.
M ion passed unanimously.
The meeti4g was adjourned at 12:35 p.m.
THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL:
%3
2012
ATTEST:,
i