TOWN OF SOUTH WINDSOR
PENSION COMMITTEE
MINUTES
January 20, 2009
The meeting was called to order at 9:45 a.m. by Matthew Galligan, Town Manager
The following members were present: Matthew Galligan, Town Manager; Karl Reichle, Superintendent of Operations; Judy Hall, Director of Human Resources; Cary Prague, Mayor; Edward Havens, Councilor.
The following members were absent:; Melanie Crucitti, Director of Finance; Donna McKenty, Business Manager, Board of Education; and Tim Kenefick, Board of Education.
A motion was made to accept the Minutes of the October 28, 2008 meeting. The motion was seconded and passed unanimously.
Tony Tranghese, CFA, Senior Consultant from Fiduciary Investment Advisors, LLC was present to provide an end of year update. He provided the committee with a Fourth Quarter 2008 Performance Report for the Town and Board of Education pension investments. Mr. Tranghese referenced Tab 1, page one which gave an overview of the Capital Market Returns for the 4th quarter of 2008. The Total Performance Summary for the 4th quarter of 2008 under Tab 2, page five showed a loss of 12.3%.
Councilor Havens asked what the bottom line loss for the year was for the two accounts. Mr. Tranghese stated it was a 23.1% for the Town’s two accounts from the date the assets were transferred from Wachovia.
Mr. Tranghese provided the committee with a hand out entitled “South Windsor – Fixed Income Opportunities. Referencing page five, Mr. Tranghese stated that it made sense to move funds into the Vanguard Intermediate-Term Investment Grade Fund. Following a discussion the following motion was made by Mr. Reichle:
To rebalance a portion (approximately 4%) of the fixed income overweight to equity. Additionally, initiate a dedicated allocation of approximately 3% to investment grade credit via the Vanguard Intermediate Term Investment Grate Bond Fund and a dedicated allocation of approximately 2% to a floating rate bank loans via the RW Seix Floating Rate Fund, both of which will be funded by a reduction to current fixed income mandates. These changes will be for both the Town of South Windsor and the South Windsor Board of Education’s investment accounts.
The motion was seconded by Matthew Galligan and passed unanimously.
The next meeting has been scheduled April 28, 2009, at 8:30 a.m. in the Caucus Room. A motion to adjourn the meeting was made at 10:40 a.m.
Respectfully submitted,
Judith A. Hall
Director of Human Resources
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