MINUTES
BOARD OF TRUSTEES OF THE POLICE & FIREMENS’ PENSION FUND
& THE BOARD OF TRUSTEES OF THE CITY EMPLOYEES’ RETIREMENT FUND
JANUARY 26, 2009
A joint meeting of the Board of Trustees of the Police & Firemens’ Pension Fund and the Board of Trustees of the City Employees’ Retirement Fund was held on Monday, January 26, 2009, in the Council Chambers.
Those in attendance included Mayor Ryan J. Bingham, Douglas J. Benedetto, Elinor Carbone, Michael Colangelo, Rick E. Dalla Valle, Edward Delisle, Raymond Drew, Michael Emanuel, Richard J. Friday, Gail Gillette, Kevin Hayes, Thomas Jerram, Mark Kugler, Delisse Locher, Joseph Manes, Nancy Michna, James E. Potter, David Prahm, Marie P. Soliani, Drake Waldron, Gerald A. Zordan and Robert C. Zordan.
Corp. Counsel Ernestine Yuille Weaver, Christopher H. Cook, John Schnyer, Robert Shopey and Richard L. Zaharek were absent.
Mayor Bingham called the meeting to order at 6:30 p.m.
Anthony Tranghese from Fiduciary Investment Advisors, LLC distributed copies of the fourth quarter report on the status of the City Employees’ Retirement fund and the Police & Firemens’ Pension fund. He said the report included a broad market summary, details on each plan on the total level, and information on each of the underlying managers.
Review of the Markets Mr. Tranghese reported that it was a very challenging 2008. He said the S & P 500 Index, for example, was down over 20% for the quarter, and for the year 2008 it was down 37%. He said everything went down soundly in the double digits.
Mr. Tranghese pointed out that there are opportunities that are falling out of this current environment. There are some securities and some segments of the market that are drastically underpriced and leave us with opportunities to try to enjoy positive returns to try to offset some of these losses.
Portfolios & Asset Allocation Summary
Mr. Tranghese said that because fixed income was up and equity was down, the portfolios are overweight fixed income (43% vs target of 35%) and underweight equity simply as a byproduct of market movements.
Mr. Tranghese reported that the long term target is about 8% per year.
Recommendation Summary
Mr. Tranghese recommended periodic re-balancing, and reducing the overweight in fixed income by about one quarter or about 2% of the overweight and allocating it back towards equities. He is not recommending re-balancing the entire underweight now but rather initiating that process and monitoring it on a regular basis.
He suggested we take 5% out of the Vanguard Total Bond Market Index weighting and allocate it to the Vanguard Intermediate Term Investment Grade Index, as well as re-balance a 2% portion of the current fixed income overweight by reducing Vanguard Total Bond Market Index Fund and increasing equity in the Vanguard 500 Index.
Mr. Tranghese also recommended regular meetings to review the portfolio.
MOTIONS #2438
**Note: these motions cannot be considered at this Special meeting and will be voted on at the next regularly scheduled meetings.
ADJOURNMENT #2604
On a motion by Mr. Jerram, seconded by Mr. Benedetto, the board voted unanimously to adjourn at 7:40 p.m.
ATTEST: CAROL ANDERSON
ASST. TOWN CLERK
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