MINUTES
REGULAR JOINT MEETING OF THE
BOARD OF TRUSTEES OF THE CITY EMPLOYEES RETIREMENT FUND
& THE BOARD OF TRUSTEES OF THE POLICE & FIREMEN'S PENSION FUND
November 13, 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 Tuesday, November 13, 2012, in the City Hall Auditorium.
Those in attendance included Mayor Ryan J. Bingham, Corporation Counsel Raymond Rigat, City Treasurer Arthur Mattiello, members of the Board of Trustees of the City Employees Retirement Fund Paul Samele, Gregg Cogswell, Gerald Zordan, Drake Waldron, John Schnyer, Gail Sartori, Raymond Drew and Delisse Locher, and members of the Board of Trustees of the Police & Firemen Pension Fund Angelo LaMonica, Darlene Battle, Richard Zaharek, Doug Benedetto, James Potter, Christopher Cook, Fire Lt. Michael Soliani and Fire Fighter Edward Delisle.
Anthony Tranghese of Fiduciary Investment Advisors, LLC was also present.
Members Marie Soliani, Elinor Carbone, Nancy Michna, Angelo Alduini, Police Lt. Michael Emanuel and Police Officer Oscar Segui were absent.
Mayor Bingham called the meeting to order at 6:00 p.m.
Presentation: Third Quarter Results
Mr. Tranghese gave a brief summary of the third quarter results where some positive news was seen on the heels of a challenging second quarter. He said that the GDP rose at an annual rate of 1.3%, unemployment numbers dropped to 7.8%, inflation spiked up, consumer confidence jumped and the housing sector seemed to show signs that it has bottomed. The market responded favorably to those items and the S & P 500 was up 6.4% in the quarter, the year to date was 16.4% for the period January 1 through September 30, and the extended 12 month period was 30.2%. He commended the disciplined approach to asset allocation and investment process that the pension funds have undertaken.
Mr. Tranghese said the international equities, fixed income markets, and domestic equities performed well,
but there weren't big changes in fixed income. He said the global economy is not out of the woods yet, but there are some positive signs in Europe. Mr. Tranghese noted that the U.S. does have positive growth, albeit at a slow pace.
Mr. Tranghese said that FIA still thinks a broadly diversified portfolio makes complete sense in trying to accomplish the goals that the pension plans are trying to accomplish especially in a volatile environment around the world. He said this is an opportune time to revisit the global equity landscape and de-emphasize fixed income strategies, moving a little bit away from standard U.S. Treasuries.
Mr. Tranghese reviewed the two portfolios. He said at the end of the quarter, the Employee plan was at 30.3 million and the Police and Firemen plan was at 43 million dollars. The returns in the quarter were up by a little over 5% after fees. For the period from January 1 through September 30, the portfolios were up over 12% and on a 12-month basis, they were up over 19½%.
He said FIA doesn't have any recommendations for change at this time, but expects to be making recommendations in the future for further diversification and some rebalancing.
ADJOURNMENT
On a motion by Commissioner Cook, seconded by Commissioner Benedetto, both Boards of Trustees voted unanimously to adjourn at 6:31 p.m.
ATTEST: Joseph L. Quartiero, CMC
City Clerk
Respectfully Submitted,
Carol L. Anderson, CCTC
Asst. City Clerk
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