MINUTES
REGULAR JOINT MEETING OF THE
BOARD OF TRUSTEES OF THE CITY EMPLOYEES RETIREMENT FUND
& THE BOARD OF TRUSTEES OF THE POLICE & FIREMEN PENSION FUND
FEBRUARY 1, 2012
A REGULAR JOINT MEETING of the Board of Trustees of the Police & Firemen Pension Fund and the Board of Trustees of the City Employees Retirement Fund was held on Wednesday, February 1, 2012, in the City Hall Auditorium.
Those in attendance included Mayor Ryan J. Bingham, Corporation Counsel Ernestine Yuille Weaver, City Treasurer Arthur Mattiello, members of the Board of Trustees of the City Employees Retirement Fund Gregg Cogswell, Marie Soliani, Elinor Carbone, Gerald Zordan, Nancy Michna, Gail Sartori and Delisse Locher, and members of the Board of Trustees of the Police & Firemen Pension Fund James Potter, Angelo LaMonica, Darlene Battle, Christopher Cook, Richard Zaharek, Douglas Benedetto, Fire Lt. Kevin Hayes and Fire Fighter Edward Delisle.
Anthony Tranghese of Fiduciary Investment Advisors, LLC was also present.
Members Paul Samele, Drake Waldron, John Schnyer, Raymond Drew, Angelo Alduini and Police Lt. Michael Emanuel were absent.
Mayor Bingham called the meeting to order at 6:30 p.m.
Presentation: Fourth Quarter Results
Mr. Tranghese gave a broad market review, saying the stock market finished the year off at a little over 2%.
The markets were very challenging throughout 2011, volatility was extremely high, correlations in equities were at all time levels and the market seemed to disregard fundamentals. Over the course of calendar year 2011, indexes across many the equity asset classes ranked near the top of their universes. Eighty percent of large cap managers did not met the S & P 500 index in 2011. He said they are hopeful that trend will reverse, and anticipate many of our managers will have the ability to outperform and add value.
Mr. Tranghese said both plans were up over 6 ½ % in the fourth quarter with very strong returns, but finished the year slightly negative, being down 2%.
Mr. Mattiello asked what FIA's current opinion is regarding Eaton Vance Large Cap. Mr. Tranghese replied that Eaton Vance is the only mandate that is on watch status, and has been on watch for four quarters. He said they are not recommending termination yet and the way the portfolio is structured today is in line with expectations. He said they are giving Eaton Vance the benefit of the doubt in that they've been in place for 12 years and had an exemplary track record for the 1st nine or ten of those years. We do think that this next quarter is the pivot point, he said.
Mr. Tranghese pointed out that small cap manager Boston Trust outperformed by quite a wide margin and ranked within the top quartile of their peers. He said this strong performance helped offset some of Eaton Vance's underperformance and that really speaks to the way the portfolio is structured today with multiple managers across various asset classes, helping to better diversify.
Mr. Tranghese said they think the portfolio continues to exhibit very strong diversification features across both asset classes and multiple investment managers. Those are positive things, he said.
Recommendations:
Mr. Tranghese made no recommendations at this time.
ADJOURNMENT
On a motion by Commissioner Benedetto, seconded by Commissioner Cook, the Boards voted unanimously to adjourn at 6:51 p.m.
ATTEST: Joseph L. Quartiero, CMC
City Clerk
Respectfully Submitted,
Carol L. Anderson, CCTC
Asst. City Clerk
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