TOWN OF SOUTH WINDSOR
PENSION COMMITTEE
MINUTES
October 28, 2008
The meeting was called to order at 8:45 a.m. by Judy Hall, Director of Human Resources
The following members were present: Karl Reichle, Superintendent of Operations Judy Hall, Director of Human Resources, Donna McKenty, Business Manager, Board of Education; Cary Prague, Mayor, Edward Havens, Councilor.
The following members were absent: Matthew Galligan, Town Manager; Melanie Crucitti, Director of Finance and Tim Kenefick, Board of Education.
A motion was made to accept the Minutes of the September 16, 2008 meeting. The motion was seconded and passed unanimously.
Tony Tranghese, CFA, Senior Consultant from Fiduciary Investment Advisors, LLC was present to update the pension committee. He provided them with a third quarter 2008 performance report for the Town and Board of Education pension investments. There was a loss of 8.3%. Mr. Tranghese also provided the committee with the preliminary balances as of 10/24/08.
Councilor Havens asked what the bottom line loss for the year was for the two accounts. Mr. Tranghese stated it was approximately a 25% loss for the Towns’ two accounts. He explained that was pretty close to the current market loss. Ms. McKenty stated that the loss would probably have an impact on the figure the Town/Board will have to fund in the upcoming budget.
As requested by Ms. Crucitti at a previous meeting, Mr. Tranghese handed out a spreadsheet on how the allocations would have done for the third quarter if the investments had remained with our previous investment manager. He said the investments would have been down 9.2% (before fees were taken out) as opposed to the 8.3% for Fiduciary Investment (after fees were taken out).
Mr. Tranghese handed out the Sector Allocation for the funds, as requested by Ms. McKenty at a previous meeting. It was agreed that the portfolio was well diversified.
There was a discussion regarding using the current market as reflected in our 10/24/08 spreadsheet to rebalance our investments. Mr. Tranghese suggested shifting 2 ½ percent from Fixed Income.
Mr. Reichle made a motion:
To move 2 ½% percent from the Fixed Income Investments by taking 1 ¼ percent from Vanguard Total Bond Market Index and 1 ¼ percent from Harbor Bond and placing 1 ½ percent in Large Cap (Vanguard 500 Index Signal) and 1 percent in International ( ½ percent in Dodge Cox International and ½ percent in Vanguard International Growth). This would be for both the Town of South Windsor and the South Windsor Board of Education investment accounts.
The motion was seconded by Donna McKenty and passed unanimously.
Ms. McKenty made a motion:
To accept the Town of South Windsor Pension Committee Investment Policy Statement as revised by the Pension Committee.
The motion was seconded by Mr. Reichle and passed unanimously.
The next meeting has been scheduled for December 2, 2008 at 8:30 a.m. in the Caucus Room A motion to adjourn the meeting was made at 9:30 a.m.
Respectfully submitted,
Judith A. Hall
Director of Human Resources
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