The URL can be used to link to this page

Home My WebLink About2024-08-15_Retirement Board Agenda_Meeting No 295 RETIREMENT BOARD MEETING August 15, 2024 1. Opening of Meeting. 2. Approval of Minutes No. 294 dated May 15, 2024 3. Public Comment. 4. Treasurer's Report: Bank Reconciliations—May 2024 - July 2024 5. Requisitions: Requisitions—May 2024—July 2024 6. Old Business. 7. New Business: a. H. Timothy Kreger's request to purchase part time service to vest for retirement. b. Michael Spadaro presentation from Korn Ferry c. Lee Martin presentation from Marquette Associates 8. Adjournment. Minute No. 294 May 16,2024 The quarterly meeting of the Washington County Retirement Board was held at approximately 11:20 a.m. on Thursday,May 16,2024,in the public meeting room with the following members being present: Commissioners Nick Sherman; Larry Maggi and Electra Janis; Treasurer Tom Flickinger and Controller April Sloane. Also present; Executive Assistants Randi Marodi and Patrick Geho; Chief of Staff Daryl Price; Solicitor Gary Sweat; Lee Martin, Brad Hampton& Sam Frymier representing Marquette Associates and Administrative Assistant Debbie Corson. Approval of Minutes Mr. Sherman entered a motion to approve meeting Minutes 293, dated February 15, 2024. The motion was moved by Ms.Janis and seconded by Mr. Maggi that the above-mentioned minutes be approved as written. No discussion followed. Roll call vote taken: Ms. Sloane—yes; Mr. Flickinger—yes; Ms.Janis—yes; Mr. Maggi—yes; Mr. Sherman—yes. Motion passed unanimously. Public Comment None. Treasurer's Report Mr. Flickinger made a motion to accept the presented reconciliations of January 2024 to March 2024. Motion was seconded by Ms.Janis. Roll call vote taken: Ms. Sloane—yes; Mr. Flickinger—yes; Ms.Janis—yes; Mr. Maggi—yes; Mr. Sherman—yes. Motion passed unanimously. Retirement Allowance Report Bank Balance as of January 1,2024 $ 88,454.94 Deposits to Checking Account $986,075.01 Transfers In $22,432.68 ACH Credit $283,035.44 Other Credits -0- Less: Cancelled Checks (58,888.03) Less: Other Debits -0- Less: ACH Debits (942,901.62) Funds Transfers Out -0- Bank Balance as of January 31,2024 $378,208.42 Transfers to Mutual Funds ($10,290.57) Less: Outstanding Checks (332,288.38) Less: Retirement Check Run (35,629.47) Reconciled Balance as of January 31, 2024 Bank Balance as of February 1, 2024 $ 378,208.42 Deposits to Checking Account -0- Transfers In 502,678.44 ACH Credit 288,868.86 Other Credits -0- Less: Cancelled Checks (64,209.27) Less: Other Debits -0- Less: ACH Debits (981,552.52) Funds Transfers Out -0- Bank Balance as of February 29, 2024 $ 123,993.93 Transfers to Mutual Funds 16,541.52 Less: Outstanding Checks (83,025.25) Less: Retirement Check Run (57,510.20) Reconciled Balance as of February 29, 2024 Bank Balance as of March 1,2024 Deposits to Checking Account $ 123,993.93 Transfers In -0- ACH Credit $950,527.13 Other Credits $290,800.02 Less: Cancelled Checks -0- Less: Other Debits (146,197.11) -0- Less: ACH Debits (980,720.25) Funds Transfers Out -0- Bank Balance as of March 31, 2024 $ 238,403.72 Transfers to Mutual Funds 21,324.02 Less: Outstanding Checks (204,400.68) Less: Retirement Check Run (55,327.06) Reconciled Balance as of March 31,2024 Requisitions Mr. Sherman entertained a motion to approve the requisitions for the months of February 2024 through April 2024. Motion was moved by Ms.Janis and seconded by Mr. Maggi No discussion followed. Roll call vote taken: Ms. Sloane—yes; Mr. Flickinger—yes; Ms.Janis—yes; Mr. Maggi—yes; Mr. Sherman—yes. Motion passed unanimously. Distributions February 2024 Check Payee Amount 3394 Roxanna Lambert 26.55 3395 Michael A Gisoni 26.55 3396 Charles Schwab as trustee of IRA of Jareen John 5,144.96 3397 Fidelity Mgmt Trust co. as trustee of IRA of Nicholas Kiger 2,069.91 3398 Trustee of PA Employees Deffered Comp Plan FBO Walter Lober 8,415.08 3399 Susan Hampe 196.21 3400 Ashley Miller 17,893.05 - TD Ameritrade as trustee of IRA of Lucas O'Donnell-VOID (3,049.10) 3401 Charles Schwab as trustee of IRA of Lucas O'Donnell 3,049.10 3402 Washington County Regular Payroll Escrow Account 28,690.90 - Washington Co. Cash Disbursement Acct - Transfer: PNC Bank 68,722.66 Transfer: Washington Co. Retirement Acct. 943,396.87 Total February 2024 Distributions 1,074,582.74 March 2024 Check Payee Amount 3404 Henry Lee Keller Sr 159.71 3405 Nancy L Hoy 20.62 3406 Susan Sance 1,364.38 3407 Angel Maldonado 3,291.84 3408 Jason Gregg 4,787.23 3409 Dominick Valentine 1,159.55 3410 Allen Thomas 64.67 3411 Alea Goodman 547.74 3412 Jaquise Simmons 562.40 3413 Angelique Roberts 4,149.69 3414 Nicholas Loniero 872.17 3415 Brenda Davis 65,620.51 3416 Nicholas Russo 1,210.34 3417 Stephanie Madrid 7,731.32 3418 Charles Schwab as trustee of IRA of Rachel Bostich 20,397.66 3419 Cody Smith 12,467.79 3420 Tasha Scott 1,116.27 3421 Tina Whited 14,476.68 3422 Trustee of Newport FBO Redev Authority of Wash Co EE's Salary 8,446.77 Reduction PS Plan Austin McDaniel 3423 Pennsylvania State Employees Deferred Compensation Plan FBO 5,564.96 Frank William Weber 3424 Washington County Regular Payroll Escrow Account 22,090.32 3425 Washington Co. Cash Disbursement Acct 62,853.58 Transfer: PNC Bank 822152.26 Transfer: Washington Co. Retirement Acct 920,123.85 Total March 2024 Distributions 1,241,232.31 April 2024 Check Payee Amount 3426 Deborah Hannah 21,223.23 3427 Pamela Geruschat 28,203.99 3428 Kiely O'Toole 731.38 3429 Ayanna Callaway 1,414.02 3430 Washington County Regular Payroll Escrow Account 20,729.64 3431 Washington Co. Cash Disbursement Acct 11,223.57 Transfer: PNC Bank 75,160.33 Transfer: Washington Co. Retirement Acct. 920,186.14 Total April 2024 Distributions 1,079,872 30 Old Business None. New Business Portfolio Presentation—Lee Martin&Brad Hampton—Marquette Associates Mr. Martin began with an introduction to Sam Frymier, a client analyst from Marquette Associates to the board. Mr. Martin moves forward with the presentation, beginning with Exhibit I, Marquette Update for the 2nd quarter of 2024. He notes that Marquette is still one of the largest independent investment advisors in the country and they are continuing to add to their ownership with new partners Tom Latzke and Melissa Gyuresik. This will ensure the continued independence in the future of the firm. Brad Hampton presents an update on the U.S economy. Mr. Hampton states that in review of the key inflation report, the portfolio has met expectations. He adds that the market has been strong in response to that. U.S economic growth continued to decelerate, with real GDP increasing at an annual rate of 1.6%in the first quarter. That said, net exports and inventories detracted about 1.2 percentage points from the headline number, masking a relatively mild slowdown in domestic demand compared to the 41h quarter. Mr. Hampton touches on the consumer aspect, stating the consumer is slowing their spending on goods, but paying more for car insurance & home insurance (about a 20%increase). When looking at the health of the U.S. consumer, 1/3 of the homes are owned outright while the other 2/3 are financed by mortgages less than 3%. Compared to overseas investors, their mortgages are floating rates. In these high interest rate environments, the European consumer has had much less to spend than the U.S consumer. The U.S consumer is in a much healthier spot. This is driven by wage growth. The ideal scenario the market is hoping for a not as strong consumer with a 2-3% wage growth. Mr. Hampton adds that with the current information, it is expected that there will be 1-2 rate cuts. Wages need to continue to level off and growth needs to continue to slow back to a more normal place. Mr. Martin moved on to present the Retirement Fund's Portfolio overview as of the 1't Quarter 2024. As of March 31, 2024, the Fund was valued at approximately $214.5 million with a first quarter net gain of 3.9% ($8.15M gain). Mr. Martin noted the Quarter 1 portfolio gross return was 4%. He also stated that the positive attribution for the quarter were from growth equities, real estate,private credit and short-term credit. The negative attribution for the quarter were from value equities, low volatility equities, Timber/Farmland and Infrastructure. Mr. Martin added that the fund gained$29.9 million over the last 3 years with a gross return of 5.4%.He states we are in the top 18%of the US DB plan universe. He noted lower volatility and downside capture: Beta 0.97. Mr. Martin also points out that we have low investment management fees of 0.42%, saving about $300,000 per year over the national average. There were some International Equity composite changes during the 1' quarter.Mr. Martin touches on these changes, stating the removal of Shroder's International Value Fund and the addition of an active emerging market manager. Mr. Martin states that there was a new allocation to Gridiron CEF strategy. Real Estate redemptions are ongoing. Mr. Martin concludes that there was a redemption submitted for 50% of Hancock Timber/Farmland Fund. Mr. Martin moved on to review the Asset Allocation Report, highlighting that Real Estate is currently at 4.5% of the portfolio, about 3.5%lower than the average percentage of other funds which will minimize any negative issues in the future with Real Estate. Mr. Martin notes that in the last few years Private Equity and Private Credit have done very well and are above target allocations. Mr. Martin touches on Total Equities, noting there has been a big change over the last few months. Mr. Martin states our Fund does not have as much exposure into the more aggressive areas of the market. Information Tech is about 3%below target. Consumer discretionary has been reduced, moving the money to Health Care and Financials. Mr. Martin explains the portfolio is positioned more defensively now than it was previously. Mr. Martin wraps up the presentation with a look at the OPEB Trust. As of March 31't, 2024, the Trust was valued at $26.6 million with a 1st quarter net gain of 5.2% ($1.3M gain) and a year-to-date gain of$13.1 million. Mr. Martin noted the positive attribution for the quarter were growth equities, real estate &infrastructure. The negative attribution for the quarter were from global value equities and international small cap.The peer group ranking for the quarter was the 271h percentile. Mr. Sherman entertained a motion to streamline the Retirement Board Minutes, to make them shorter after discussing with Controller Sloane. Motion was seconded by Mr. Maggi. Roll call vote taken: Ms. Sloane—yes; Mr. Flickinger—yes; Ms.Janis—yes; Mr. Maggi—yes; Mr. Sherman—yes. Motion passed unanimously. No Discussion followed. The meeting was adjourned at 11:55 p.m. THE FOREGOING MINUTES SUBMITTED FOR APPROVAL: 12024 ATTEST: