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Home My WebLink AboutCOMM - Meeting Minutes - 247 - 5-16-2013 - RETIREMENTIMR Limited Form 825 E00102204 MR No. 247 Washington County Retirement Board Washington, PA May 16, 2013 The quarterly meeting of the Washington County Retirement Board was held at mately 10:55 a.m. on Thursday, May 16, 2013 in the Public Meeting Room with following members being present: Commissioners Larry Maggi, Harlan Shober, Diana Irey Vaughan; Controller Michael Namie; and Treasurer Francis L. King. o present: Chief Clerk Mary Helicke; Secretary Joyce Thornburg; Director of once Roger Metcalfe; Director of Administration Scott Fergus; Solicitor Lynn Javen; concerned citizen Frank Byrd; Lee Martin representing Peirce Park; and to Natali, Jr. representing C.S. McKee. Mr. Maggi entertained a motion to approve Minute No. 246 dated February 21, 13. The motion was moved by Mrs. Irey Vaughan and seconded by Mr. King that the mentioned minutes be approved as written. No discussion followed. 11 call vote taken: Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi — yes; Mr. King — yes; Namie — yes. Motion passed unanimously. None. Mr. King stated that for February and March 2013, the bank balance was led to zero. It was moved by Mr. King and seconded by Mrs. Irey Vaughan that report be approved. No discussion followed. 11 call vote taken: Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi — yes; Mr. King — yes; Namie — yes. Motion passed unanimously. Bank Balance as of February 1, 2013 Add: ACH Credit Add: Other Credits Less: Cancelled Checks $ 86,000.56 243,554.06 246,943.46 (167,135.07) sio s Less: ACH Debits (420,007.48) Bank Balance as of February 28, 2013 $ (10,644.47) Add: Transfers into Checking Account 44,695.66 Transfer to Investment (270.00) Less: Outstanding Checks (20,752.68) Less: Retirement Check Run 13 028.51 Reconciled Balance as of February 28, 2013 $ 2 Bank Balance as of March 1, 2013 $ (10,644.47) Deposits to Checking Account 124,209.11 Add: ACH Credit 244,687.88 Add: Other Credits 207,868.63 Less: Cancelled Checks (69,383,35) Less: ACH Debits (419,143.78) Bank Balance as of March 31, 2013 $ 77,594.02 Transfers into Checking Account 539.93 Less: Outstanding Checks (58,449.75) Less: Retirement Check Run (19,684.20) Reconciled Balance as of March 31, 2013 $ 2 Requisitions Mr. Namie stated that requisitions for the months of February, March, and Api 2013 totaled $1,640,119.26. It was moved by Mr. Namie and seconded by Mrs. Irey Vaughan that the requisitions be approved. No discussion followed. Roll call vote taken: Mr. Shober — yes; Mrs. Irey Vaughan — yes; Mr. Maggi — yes; Mr. King — yes; Mr. Namie — yes. Motion passed unanimously. Distributions February 2013 Check Payee 667 John Frizzi 668 Huntingdon Bank as trustee of IRA of Jeffrey S. Ginther 669 Daniel F. Gleixner 670 Kimberly Jackson 671 Amanda Palmer 672/673 Caroline Prince Amount 933.12 30,882.69 621.68 490.78 3,064.05 5,741.67 f� 1 3 017 674 Jeri Vitteck 2,379.62 675 Jarrod J. Weiss 1,868.77 676 FMTC FBO Rachel A. Wheeler 3,453.61 677 Washington County Cash Disbursement Account 49,731.34 678 Washington County Regular Payroll Escrow 7,512.63 Account ansfer PNC Bank 28,661.17 ansfer Washington County Retirement Account 403,241.45 Total February 2013 Distributions S 538,582,58 March 2013 Check Payee Amount 680 Estate of Karolina Coffield $ 60.93 681 Estate of Patricia Vizyak 29.91 682 Renee Bell 1,986.09 683 Brittany Boeltz 1,328.22 684 James C. Corwin 63.89 685 Veronica Furmanek 16,303.64 686 Bradley Poland 2,599.40 687 Suntrust Investment Services as trustee of 15,873.73 IRA of Christal Reynolds 688 Kobe Marie Sarracino 29.65 689 PNC Bank as trustee of IRA of Timothy M. 3,162.68 Relich 690 Tina Stallard 7,598.78 691 Kathleen P. Miller 5,475.40 692 Washington County Regular Payroll Escrow 7,467.10 Account 693 Washington County Cash Disbursement 30,307.69 Account Transfer PNC Bank 33,018.44 Transfer Washington County Retirement Account 406,346.96 Total March 2013 Distributions April 2013 Check Payee Amount 694 Washington County Cash Disbursement $ 62,735.33 Account 695 Estate of Lila Theakston 137.49 696 Steven Sisul Jr. 6,730.00 697 Martha Ward 6,730.00 698 Brianne Almasy 136.06 699 Christopher L. Barnes 566.66 700 Brooke E. Bonner 380.03 701 Susan Cagnon 55,029.39 702 Von D. Lacock II 14.43 703 Ian M. Malone 59.39 704 Amanda M. Orbash 437.08 705 Megan Riggs 1,511.39 706 Michael Stritmatter 1,569.54 707 Washington County Regular Payroll Escrow 7,399.20 Account Transfer PNC Bank 39,359.54 Transfer Washington County Retirement Account 387,088.64 Total April 2013 Distributions S 569,884.17 Old Business None. New Business Mr. Maggi entertained a motion for the ratification of an MOU dated April 19, 2013 for the approval of a request from Marsha Bauer to buy back unpaid leave of absence time from November 25, 2010 to January 6, 2011, and January 31, 2012 to March 2, 2012 in the amount of $1,074.56. The motion was moved by Mrs. Irey Vaughan and seconded by Mr. Shober. 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. Maggi noted for the record an agreement with Lisa Carpenter to purchase service credit dated March 13, 2000 to September 4, 2001 in the amount of $875.02. Mr. Maggi entertained a motion for the approval of a contract with Maher- !! Duessel for audit services for the Washington County Retirement Fund for the years x ended December 31, 2012, 2013, 2014, and 2015 at a cost of $1,950.00 per year. The G <t motion was made by Mr. Irey Vaughan and seconded by Mr. Shober. 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. Presentations 1 1 1 Sold By IMR Limited Form 825 E00102204 Peirce Park — Lee Martin Mr. Martin stated that in contrast to a slow 4th quarter of 2012, market performance in the 1st quarter and 2nd quarter to date has been strong. GDP rose 2.5%, company reports have been better than expected, inflation has been relatively benign, and the unemployment rate has been inching downward. All of these factors have helped the markets. Consumer spending picked up in the 1 st quarter, but this coincided with a drop in the savings rate, not an increase in income. Without an increase in income, increases in consumer spending cannot continue. Developed markets had a great start in 2013 with the U.S. up 10.7% and Japan up 11.5%. Fixed income is down, as predicted, with long-term bonds down 2.3%. Both of the fund's fixed income managers have gone short-term and are ratcheting down on duration. Mid -cap stocks are a great place to be for the quarter and for the year-to-date, particularly mid -value stocks. C.S. McKee — Gene Natali, Jr. With interest rates being low and inflation not really being a threat, stocks are at their prime. On the fixed income side, C.S. McKee is very much in the preservation of principal mode. Despite the attractiveness of moving to high -yield, C.S. McKee is remaining conservative and not moving up the risk curve. Peirce Park — Lee Martin The County's fund was up 6.4% for the quarter, gaining $7.2 million and ranking in the top 6th percentile of all public funds in the U.S. As of today's date, the fund value is $123.5 million. Mrs. Irey Vaughan asked if this was the time to consider lowering the rate of return from 7.5% to 7.0%. Mr. Martin responded that the Board might want to consider inching down to 7.0% over a period of a few years if the equity market remains strong. What helped for the quarter was the mid -cap value tilt. Also helping was the performance of the GTAA and Emerald. Negative performance for the quarter came from the defensive managers, New Perspective and Wellington, as would be expected in this market environment. C.S. McKee's equity performance was behind for the quarter but at benchmark for the 5-year. C.S. McKee has also done well at protecting on the down side of the market. Mr. Natali stated that the underperformance over the last 18 months has been due to a move by C.S. McKee to more growth oriented stocks. Even though this is not being rewarded right now, C.S. McKee is committed to staying consistent and believes the market will reward this strategy. Mr. Martin emphasized the importance of diversification, pointing out that even though C.S. McKee's performance lagged, the total portfolio did well 310 due to the different managers' investment strategies. Since inception, every manager that the County has is over index by about 2%, an impressive performance from an impressive line-up of managers. The only recommendation that Mr. Martin had at this time was the possible addition of global low volatility if the returns in fixed income continue to be flat. These are blue chip, high dividend, very low volatility staples, etc. Two to five percent could be taken from fixed income and transferred to global I ,E low volatility without raising the County's risk profile. Mr. Martin offered to provide information on this investment opportunity at a future date if the Board �g so desired. The meeting was adjourned at 11:36 a.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: 1 `1 V`= / (�9 .2013 ATTEST: , 1