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HomeMy WebLinkAboutAgreement_Pension General_05/11/04r INVESTMENT MONITOR AGREEMENT THIS AGREEMENT is entered into this ~ ~ da of Y , 2004, by and between the BOARD OF TRUSTEES OF THE VILLAGE OF TEQUESTA GENERAL EMPLOYEES' PENSION FUND, hereinafter referred to as the "Trustees," and BOGDAHN CONSULTING, LLC, hereinafter referred to as the "Consultant." WITNESSETH WHEREAS, the VILLAGE OF TEQUESTA GENERAL EMPLOYEES' PENSION FUND, hereinafter referred to as the "Fund," has been established for the purpose of ~ ~ ~, ~~ l providing retirement and related benefits to eligible participants and beneficiaries and ~ ~ ~~ 1 4N defraying reasonable expenses of administering the Fund; and WHEREAS, the Consultant represents that it is skilled in the area of investment performance, and the Consultant represents that it is free and independent of the influence of any Investment Managers to the Fund; and WHEREAS, the Trustees desire that the Consultant serve as an independent consultantwith respect to assisting the Trustees in monitoring the investment performance of certain of the assets of the Fund, and the Consultant is willing to so serve. NOW, THEREFORE, in consideration of the mutual agreements herein contained, it is covenanted and agreed as follows: 1. Appointment of Consultant. The Trustees appoint the Consultant as an independent consultant with respect to assisting the Trustees in monitoring the investment performance of those Fund assets being managed as equity or fixed income investments and for which the Trustees pay a fee for investment. 1 2. Duties of the Consultant. Services under this Agreement shall include, but are not limited to, the following: 2.1 Assist the Trustees in determining and outlining specific investment objectives and help draft and execute a Statement of Investment Policy to be adhered to by the Investment Manager(s). 2.2 Assist the Trustees in evaluating the investment performance of the Investment Manager(s) of the Plan. 2.3 Assist the Trustees in determining the desirability of continuing orterminating the employment of the Investment Manager(s). If necessary, and only at the direction of the Trustees, the Consultant will conduct an Investment Manager Search; 2.4 The Consultant shall provide in report form on a quarterly basis, the annual rates of return for the total Pension Fund, as well as equity and fixed income portions of the Pension Fund, calculated according to the American Banking Institute method. The Consultant shall also provide an annual database ranking for the above retums, and comparisons to appropriate indices. This information shall be provided for each Investment Manager. All rates of retum shall be reported both as a gross rate of returns and a rate that is net of fees. 2.5 The Consultant shall make an oral presentation of the above report at a time and place designated by the Trustees on a quarterly basis. 2.6 The Consultant shall assist the Trustees in monitoring compliance by the Investment Managers with the investment objectives and guidelines set forth in the Trustees' Statement of Investment Policy and Guidelines and the Village of Tequesta General Employees' Pension Plan. 2 2.7 Assist the Trustees in determining asset allocation; 2.8 Other special projects requested by the Board. 3• Qualifications. The Consultant certifies that it is professionally qualified as an independent consultant to evaluate the performance of professional money/investment managers, and that it has at least five (5) years of experience as an investment Consultant in the public sector. Furthermore, Consultant is an investment advisor registered with the Securities and Exchange Commission under the Investment Advisors Act of 1940. 4. Independent Status. The Consultant certifies that it is not associated in any manner with the present Investment Manager(s) of the Fund. Further, the Consultant certifies that it shall not be associated in any manner with any future Investment Manager(s) of Fund assets for whose performance the Consultant is engaged to evaluate. 5. Fees and Costs. 5.1 For service rendered under this Agreement, the Trustees shall pay the Monitor an annual cash fee as set forth in Exhibit A attached hereto which is payable quarterly in arrears upon delivery of the quarterly report. 5.2 No other fees or costs shall be payable without the express written consent of the Trustees. 5.3 This fee will be guaranteed for a period of three years from the date of the agreement above. 5.4 It is the responsibility of the individual investment manager(s) to achieve best price and best execution in their securities transactions in accordance with the agreements between those managers and the Fund. 3 6. Record Retention. The Consultant shall maintain all records held by it pertaining to the Fund for six years from the date of origination of such records. 7. Confidential Information. The Consultant shall maintain and protect in strictest confidence any and all data, information, and documents of and concerning the finances, business and affairs of the Fund which Consultant acquires in its performance of this Agreement. The Consultant agrees that none of the aforesaid data, information or documents, and none of the reports and analyses prepared by the Consultant as provided in Paragraph 3 hereof, or othervvise, shall be disclosed to anyone except the Consultant's subcontractors, the Trustees, the investment manager, the administrative manager, consultant, actuary or legal counsel to the Trustees, except as otherwise agreed to in writing or as required by law. 8. Fiduciary Relationship: Consultant will provide the services contacted for in order'to assist the Trustees in making prudent investment judgments. In performing services hereunder, Consultant shall act solely in the best interest of the Fund and shall have a reasonable basis for any information provided. However, final decision making authority and responsibility resides with the trustees. The Consultant acknowledges that it is a fiduciary of the Plan within the meaning of the Employee Retirement Income Security Act of 1974 ("FRIBA") and Florida Statute §112.656. 9. Assignability. This Agreement shall not be assigned without the prior written consent of the Trustees. 10. Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto. 4 11. Modification. This Agreement may be modified or revised only by written amendment signed by the Trustees, and incorporated as written amendments to this Agreement. 12. Prior Amendments. This Agreement supersedes all prior agreements with the Consultant, oral or written. 13. Applicable Law and Venue. Insofar as they do not conflict with any applicable federal law, the laws of the State of Florida shall govern this Agreement. Any dispute involving the enforcement or interpretation of this Agreement shall have venue in Palm Beach County, Florida. 14. Termination. This Agreement may be terminated with thirty days notice by either party hereto upon mailing of written notice, by certified mail, to the other party at the addresses given below: Fund: Tequesta General Employees' Pension Fund c% Daniel J. Gallagher, Pension Administrator ~Ilage of Tequesta 250 Tequesta Drive, Suite 300 Tequesta, FL 33469-0273 Consultant: Joe Bogdahn Bogdahn Consulting, LLC 62 Fourth Street Southwest Winter Haven, FL 33880 Copy: Bonni S. Jensen, Fund Legal Counsel Hanson, Perry & Jensen, P.A. 400 Executive Center Drive, Suite 207 West Palm Beach, FL 33401-2922 15. Trustees' Responsibilities. The Trustees represent that custodial account statements, asset valuations, and other information relating to the Fund as may be requested by Consultant is accurate and complete in all material respects. Consultant 5 1012.0071 shall not be required to verify the accuracy of such information and Consultant shall be entitled to rely on such information. IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their respective authorized representatives on the dates indicated below. BOARD OF TRUSTEES OF THE VILLAGE QUESTA GENERAL EMP EES' NSION FUND: BOGDAHN CONSULTING, LLC By: Jo Bogdahn, Principal / ~~1~~ lv y Secretary Date: ~ ! ~ ~ Witness as to Board of Trustees: - ' 1 ~ Date: ~ (,D O Witn s as to Monitor: BSJ/ka May 10, 2004 H:\Tequesta GE 10121VendorslMonitor\AGMT.wpd EXHIBIT A Fees and Costs Evaluation of Manager Performance: In consideration for providing Investment Monitor/Consultant services to both the Tequesta General Employees Pension Fund and the Tequesta Public Safety Officers' Pension Fund, the Consultant's fee for the first three years is as follows: Year 1: No Charge Year 2: $2,000.00 Year 3: Regular Fee Schedule Regular Annual Fee (Based on Assets): Less than $750,000 $750,000 to $1,500,000 $1,500,000 to $2,500,000 $2,500,000 + Set up fee Additional Fees: Additional Investment Manager Evaluations $2,500 Additional Meeting Attendance $300 per meeting (waived for the first year) Manager Search $3,500 per search $3,000 $4,500 $6,000 $8,000 $350 per year of data Fee is guaranteed for three years.