MINUTES
SPECIAL JOINT MEETING OF THE
BOARD OF TRUSTEES OF THE CITY EMPLOYEES RETIREMENT FUND & THE BOARD OF TRUSTEES OF THE POLICE & FIREMEN PENSION FUND
NOVEMBER 15, 2010
A SPECIAL 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 Monday, November 15, 2010, in the City Hall Auditorium.
Those in attendance included Mayor Ryan J. Bingham, Corporation Counsel Ernestine Yuille Weaver, Treasurer Arthur Mattiello, members of the Board of Trustees of the City Employees Retirement Fund Gregg Cogswell, Elinor Carbone, Gerald Zordan, Marie Soliani, Drake Waldron, Delisse Locher, Nancy Michna, Raymond Drew, David Prahm and Gail Gillette, members of the Board of Trustees of the Police & Firemen Pension Fund James Potter, Darlene Battle, Police Lieutenant Michael Emanuel, and Firefighter Edward Delisle.
Anthony Tranghese of Fiduciary Investment Advisors, LLC was also present.
Mayor Bingham called the meeting to order at 6:00 p.m. He explained that due to a lack of quorum from the Board of Trustees of the Police & Firemen’s Pension Fund, only the Board of Trustees of the City Employees’ Retirement Fund would vote tonight.
Presentation: Third Quarter Results
Mr. Tranghese reviewed the Executive Summary, saying the markets rebounded quite substantially in the third quarter, with the S & P 500 index up 11.3% during that time.
He reviewed the asset allocations for each plan, pointing out that each was comfortably within the target ranges that have been set.
One of the two status changes Mr. Tranghese suggested was Columbia Acorn International Z,
whose ownership has been transitioned to Ameriprise. This is no longer on ‘watch’ status and is recommended to be maintained. The other, Columbia Marsico Growth Z Fund, he said, should be put on ‘watch’ status due to underperformance, outflows, announced changes to the portfolio management team, and an announced ownership change within Marsico.
Mr. Tranghese recommended the Columbia Marsico Growth Z mandate be eliminated and moved temporarily into a large cap growth index fund as a placeholder to keep the allocation in place. He recommended quick implementation of Vanguard Growth Index Fund which has an expense ratio of nine basis points.
REALLOCATION OF FUNDS
On a motion by Councilor Zordan, seconded by Councilor Carbone, the Board of Trustees of the City Employees Retirement Fund voted unanimously to liquidate all the holdings in the Columbia Marsico Growth Z Fund and use the proceeds to buy the Vanguard Growth Equity Index Fund, as recommended by FIA.
Mr. Tranghese continued to give a performance overview of the pension plans’ managers.
BUSINESS
On a motion by Councilor Carbone, seconded by Councilor Cogswell, the Board voted unanimously to consider business by the Boards of Trustees.
Mayor Bingham said that he intends to review FIA over the next few months, creating a committee to see what else is available, as other companies have expressed interest in working with us as well. He said he’s looking for volunteers for this committee.
ADJOURNMENT
On a motion by Councilor Carbone, seconded by Counselor Cogswell, the Boards voted unanimously to adjourn at 6:37 p.m.
ATTEST: Joseph L. Quartiero, CMC
City Clerk
Respectfully Submitted,
Carol L. Anderson, CCTC
Asst. City Clerk
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