HomeMy WebLinkAboutMinutes_Pension Public Safety_5/2/2016 TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
REGULAR BOARD WORKSHOP MINUTES
May 2, 2016
I. CALL TO ORDER AND ROLL CALL
The Regular Quarterly Board Meeting of the Tequesta Public Safety Officers' Pension Trust
Fund Board of Trustees was held at the Village Hall Council Chambers, 345 Tequesta
Drive, Tequesta, Florida, on May 2, 2016. The workshop was called to order at 1:08 p.m.
A roll call was taken by Pension Administrator Denise McNeill. In attendance at the
meeting were: Board Member John Terzakis, and Board Member Kyle Stone. It was noted
a quorum was not present.
Also in attendance were Attorney Bonni Jensen, Pension Administrator Denise McNeill,
Investment Monitor John Thinnes, and Custodian Amed Avila.
II. PUBLIC COMMENT
There was no public comment
V. PRESENTATIONS
4. a. Annual Custodial Update
Amed Avila of Fiduciary Trust appeared before the Board to present an update since the
transition to Fiduciary Trust. He reported the Plan transitioned from Salem Trust to
Fiduciary Trust on October 30, 2015 and they transitioned pension payment service on
January 4, 2016. He reported it was a seamless transition and he is still involved in the
daily activity. Board Member John Terzakis thanked Mr. Avila for a smooth transition.
3. a. Quarterly Performance Report as of March 31, 2016
John Thinnes of Bogdahn Group appeared before the Board to present the Performance
Report as of March 31, 2016. He reviewed the performance report noting the beginning of
2016 was poor; however the market began to transition early in February; international
continues to lag the domestic markets and oil has rallied and the price has begun to
increase. He reported active management did not do well in the past year and especially in
the prior quarter. Mr. Thinnes reported that for quarter ending March 31, 2016 the Plan's
market value was $11,601,625 and the asset allocations were as follows; Domestic Equity
49.9%, International Equity 14.7%, Domestic Fixed Income 29.0%, Global Fixed Income
4.9% and Cash Equivalent 1.4%. He stated the allocations are in range with the targeted
allocations. Mr. Thinnes reported the total fund was up for the quarter .66% versus the
policy of 1.75%; Brown Advisory was down -1.34% versus the benchmark at 0.74%,
Gabelli/GAMCO was up 1.82% versus the benchmark of 1.64%, EuroPacific fund was
down -2.32% versus the benchmark at -0.26%, Garcia Hamilton fixed Income was up
3.25% versus the benchmark at 3.03%, and Templeton was up 0.24% versus the
benchmark at 6.12%. He went on to review each manager in detail. He reported Bogdahn
had recently met with Brown's portfolio manager and investment team as they have not
performed well in the past three years. He advised that Bogdahn is not currently
recommending they make a change from Brown. Mr. Thinnes explained EuroPacific is
doing well overall; however they trailed in the recent period due to lack of holdings in
energy and energy markets. Garcia Hamilton is doing well and has outperformed the
bench. Discussion followed regarding the international market and Mr. Thinnes reported
Templeton is not doing well. He reported Bogdahn had spoken with the firm the prior week
to address their performance relative to the bench. They explained the reasons for the
underperformance to the bench related to Templeton's defensive position on interest rates
and their bets that the US dollar would appreciate faster than it has. He reported Bogdahn
remains confident in Templeton and is not recommending moving the assets at this time.
Mr. Thinnes advised Bogdahn will be keeping an eye on Templeton and Brown accordingly.
Discussion followed regarding the asset allocation and upcoming capital call for real estate.
Mr. Thinnes explained the 10% going into real estate should be a good allocation change
for the Plan. John Thinnes departed the meeting at 1:22 p.m.
Mrs. Jensen explained the remaining items can be held until the next meeting when the
Board has a quorum.
Mrs. Jensen reported member David Cooper had a pending disability application; however
he recently went by the administrator's office and withdrew his disability request and
instead has applied for a refund of contributions. Mrs. Jensen explained the Board cannot
take action on the refund request without a quorum.
Discussion followed regarding meetings via teleconference versus requiring Board
members to be present in the room. Mrs. Jensen explained it is possible the State may
change the rules related to the requirements at some point.
There being no further business, the workshop was adjourned at 1:30 p.m.
Respectfully submitted,
154'n--i-se McNeill
Administrator
Village of Tequesta Public Safety Officers' Pension Plan
Board Member
Village of Tequesta Public Safety Officers' Pension Plan