HomeMy WebLinkAboutDocumentation_Pension Public Safety_Tab 04_06/15/2010 April 28, 2010
Ed Sabin
Tequesta Public Safety Officers Pension Plan
345 Tequesta Drive
Tequesta, FL 33469
Dear Mr. Sabin:
This letter will constitute our agreement with respect to the brokerage transactions on behalf of the
Tequesta Public Safety Officers Pension Plan (herein referred to as the "Fund ") to be directed to BNY
ConvergEx Execution Solutions LLC (herein referred to as "ConvergEx ") and its correspondent brokers.
You understand that in making this agreement there are no required volumes, no fees (other than the
normal transaction charges associated with executing your orders) and no time requirements.
The Fund agrees to direct its investment managers to effect certain equity transactions through
ConvergEx consistent with best execution. All commission charges per share will continue to be based
on your managers' normal negotiated rate schedules. Pursuant to this agreement, we will refund to the
Fund a percentage of the commission paid directly to ConvergEx, as per the attached Schedule.
Further, should your investment managers execute fixed income transactions through ConvergEx,
pursuant to this agreement, we agree to refund to the Fund a percentage of the available credits generated
from these fixed income transactions, as per the attached Schedule.
Additionally, should your investment managers execute non -U.S. equity or non -U.S. fixed income
transactions through the our global correspondent broker network, we agree to refund to the Fund a
percentage of the net credits excluding correspondent execution and clearance and local charges, taxes,
etc., generated from these transactions, as per the attached Schedule.
Any refunds will be made monthly by check or wire, directly to the Fund. Alternatively, we will pay bills
for bona fide expenses of the Fund, upon your instruction.
In entering into this agreement, the Fund represents and warrants that: (1) the Fund has full power and
authority to enter into this Agreement and the transactions contemplated by this Agreement; (2) the
Agreement is in full compliance with the terms of the documents governing the Fund; and (3) refunds will
be used exclusively for the benefit of the Fund, and in no event will be used to pay any expenses properly
chargeable to the sponsoring company or any other person or entity. If you request us to pay expenses of
or provide research services to the Fund, you represent and warrant that (1) any services that we provide,
or obligations we pay, will be used exclusively for the benefit of the Fund and (2) the expenses
attributable to such services or obligations are properly payable by the Fund. In addition, the Fund agrees
to have strict record keeping and other controls to assure the above. Additionally, should you request us
to provide services for the Fund and if, as a result, a shortfall should occur (i.e. the Fund's credits do not
equal payments made on your behalf), the Fund agrees, if required, to reimburse us for such shortfall.
The Fund understands that in making these refunds or payments, or providing these services, we will be
relying upon the representations and agreements contained herein, which the Fund hereby authorizes us to
do. You further understand that the amounts credited to the Fund as noted in the attached Schedule take
into account that no interest shall be payable by ConvergEx on any funds held for the benefit of the Fund.
You further agree to advise us promptly of any change in any material fact contained in this letter.
NOTICE TO CUSTOMERS REGARDING INFORMATION COLLECTED FOR CUSTOMER
IDENTIFICATION PURPOSES: To help the government fight the funding of terrorism and
money laundering activities, financial institutions, including the BNY ConvergEx Group of
companies, are required by US Federal law to obtain, verify, and record information that
identifies each individual or entity that opens an account or requests credit. What this means for
BNY ConvergEx Group customers: When a corporation, partnership, trust or other legal entity
opens an account or requests credit, we will ask for the entity's name, physical address and tax
identification number, as well as any other information that will allow us to identify that entity,
and may also ask to seek identifying documents, such as formation documents, business licenses,
or similar materials.
The term of this Agreement shall begin on the date first written below and shall continue in force and
effect until terminated. The Agreement may be terminated by either party upon thirty (30) days' prior
written notice.
The interpretation and enforcement of this Agreement shall be governed by the laws of the State of New
York, without regard to its principles of conflict of laws. This Agreement contains the entire agreement
between the parties and supersedes any prior agreements between the parties with respect to the
commission recapture arrangement. No provision of this Agreement shall in any respect be amended or
deemed to be waived unless such amendment or waiver is signed by the party against whom such
amendment or waiver is to be enforced.
Please indicate your agreement with and acceptance of the above by signing and returning a copy of this
letter at your earliest convenience. On behalf of ConvergEx, I would like to thank you for providing us
with the opportunity to work with you in order to save money for the Fund.
Yours sincerely,
Christian Kraus Fred Bailey
VP Sales Managing Director
Approved and accepted for the Tequesta Public Safety Officers Pension Plan by:
Name Title Date
ConvergEx Recapture Services
Commission Recapture Schedule for
Tequesta Public Safety Officers Pension Plan
TYPE RECAPTURE RATE
U.S. EQUITY RECAPTURE THROUGH 70 %*
CONVERGEX DESK
U.S. FIXED INCOME RECAPTURE 70%
THROUGH CONVERGEX DESK
U.S. / NON -U.S. / FIXED INCOME 70% of NET **
EQUITY RECAPTURE THROUGH MASTER
BROKER NETWORK
* These rates are based upon negotiated commission rates of 4-5 cents per share.
[ConvergEx will retain a minimum of 1.5 cents per share.]
* *Net is the commission amount received by ConvergEx less correspondent execution and clearing charges, and local charges
and taxes.
Initial:
By ConvergEx By Tequesta Public Safety Officers Pension Plan
Tax ID:
Tax Certification: Under penalties of perjury, I certify that (1) the Tax I.D. number shown on this form is my correct Tax I.D. number, and (2) I
am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the IRS that I am
subject to backup withholding as a result of a failure to report all interest and dividends, or (c) the IRS has notified me that I am no longer subject
to backup withholding, and (3) I am a U.S. person (including a U.S. resident alien)
I understand that I must cross out the text contained in clause (2) above if I have been notified by the IRS that I am subject to backup withholding
as a result of underreporting dividend or interest income.
I meet the requirements of 2a above as an exempt recipient.
The IRS does not require your consent to any provision of this document other than the certifications required to avoid backup withholding.
Sign here: Date:
Client Information Schedule: (To be completed with the Agreement)
Tequesta Public Safety Officers Pension Plan
Client Type: (Please check one)
Hedge Fund Plan Sponsor — Corporate Regional Specialist
Corporation Plan Sponsor — Endowment ECN
Registered Investment Advisor Plan Sponsor — Foundation Minority Broker Dealer
Insurance Company Plan Sponsor — Healthcare Regional Broker Dealer
Trust Bank Plan Sponsor — Public XX Consultant Broker Dealer
Universal Bank Plan Sponsor — Taft - Hartley Other Broker Dealer
UIT Plan Sponsor — Trust Government
ETF Introducing Broker Dealer Pension Plan
Stock Transfer Market Maker
Disbursement of Commission Credits: (check one)
Issue check monthly for entire balance
Wire quarterly for entire balance
Hold and apply toward qualified Fund invoices
Hold until requested
Other
If a check/wire is to be issued:
Payable to:
Mailed/Wired to:
Company /ABA #:
Address/DDA #:
City,State,Zip /Account # :
Telephone:
Fax:
Statement Instructions:
Attn:
Entity:
Address:
City /State /Zip:
Telephone:
Fax:
E -mail:
ii--Ils\ T HE
BOGDAHN
GROUP
s implifying your inrestntent and fiduciary decisions
June 2010
Rockwood Capital Advisors, LLC.
Attn: Andy Holtgrieve
721 Emerson Road • Suite 565
St. Louis, MO 63141
holtgrievea@rockwoodcapital.com
(888) 962 -8336
Re: Domestic Equity Trading Direction Letter
Dear Mr. Holtgrieve,
This letter will confirm our arrangement concerning brokerage commissions for the Village of
Tequesta Public Safety Officers' Pension Plan. (herein referred to as "the Fund "). The Board of
Trustees primary concem and focus is to receive best execution for trades done on behalf of the
Fund. Accordingly, you are directed to seek best execution through your established brokerage
trading houses, electronic trading platforms and recapture brokers. If the Fund has contracted
with vendor(s) to provide recapture services for the Fund, we will attach a schedule of these
providers for your information and potential use. Best execution, which is defined solely by the
investment manager, includes but is not limited to, the net effect of commissions paid, market
impact, timeliness of transaction and opportunity cost.
To ensure all your security transactions have been executed consistent with your obligation to
seek best execution in each trade, we require a quarterly accounting of all trading activity done
on behalf of the Fund. Please send this trading report to research(a�bogdahngroup.com within
15 days after the end of each calendar quarter.
Any other questions regarding this relationship should be directed to my attention.
Sincerely,
Authorized Signer
Village of Tequesta Public Safety Officers' Pension Plan
Cc: Daniel Johnson, Investment Consultant, The Bogdahn Group
Bonni Jensen, Board Counsel
4901 Vineland Road '^ Suite 600 ": Orlando, Florida 32811
Telephone (866) 240 -7932 % Facsimile (863) 292 -8717
www.bogdahngronp.com
THE
BOGDAHN
GROUP
4 simplifying your investment and fiduciary decisions
Recapture Provider Contact Information:
Convergex (Formerly Lynch, Jones and Ryan)
Contact: Christian Kraus
Phone: (212) 497 -1547
Email: CKraus @bnyconvergex.com
1633 Broadway, 48th Fl
New York, New York 10019
4901 Vineland Road Suite 600 ' ' Orlando, Florida 32811
Telephone (866) 240 -7932 ( Facsimile (863) 292 -8717
www.bogdahngroup.com