HomeMy WebLinkAboutMinutes - 04/14/2015 - Police Pension BoardPolice Pension Board of Trustees
Regular Meeting
April 14, 2015
A meeting of the City of McHenry Police Pension Board of Trustees was called to order at 3:30 PM by
President Jeffrey Foerster. Other board members present: Jon Meyer, Marc Fisher and Kelly Ducak. Absent:
Ormel Prust.
Others present: Jim Schmidt, LPL Financial; Gary Karshna, Capital Gains, Inc.; and recording secretary Marci
Geraghty, City of McHenry.
Public Input
None.
Approval of Minutes
K. Ducak made a motion, seconded by M. Fisher to approve meeting minutes from January 13, 2015 as
presented and to hold them for audit.
Ayes: Ducak, Fisher, Meyer, Foerster,
Absent: Prust
Abstain: None
Motion carried
Report of Investments and Accounts:
a) Treasurer Report: None presented.
b) Fixed Assets Investment Report: Gary Karshna from Capital Gains presented the fixed assets
investment report for the period ending March 31, 2015 at which time the Market Valuation was
$9,146,668 and Book Valuation $9,189,230.
Mr. Karshna reported the short duration bond portfolio will perform well in a flat to rising interest rate
environment, but will underperform when interest rates are falling. This defensive posture is warranted
because interest rates are at historic low yield levels and cannot stay at these low levels indefinitely. He
recommends continuing the "barbell" investment strategy to maintain duration around 2.50, and
minimize the amount invested in longer term securities. The fund's short duration portfolio is trailing
the benchmark index. However once interest rates begin to rise, it should outperform the benchmark
bond index, by a significant margin. He cautioned that the fund does not want to be buried in long-term
positions at historic low yield levels. One T-Note was purchase during the period and one or two long-
term investments will be purchased.
c) Equities Investment Report: Jim Schmidt of LPL Financial presented the equities report for the period
�-' ending April 10, 2015 with a total market value of $12,108,304.29; up 4.6% year-to-date. Mr. Schmidt
reported the fund should see a benefit of monetary easing in international markets, which is another
reason to stay short in the bond market. The fund is currently invested in equities at 57%. Mr. Schmidt
distributed information on last year total returns for each equity investment fund.
d) Approval to deposit profits from investments and/or sale of individual investments and deposit those
funds into the Pension Fund checking account for the purpose of paying bills: President Foerster
reported Treasure Lynch is requesting $240,000 to pay bills; $110,000 by April 301" and $130,000 by
May 29`". Fixed Assets Manager Karshna stated there is currently $129,000 in cash available and on
April 28"' $250,000 can be captured.
J. Meyer made a motion, seconded by M. Fisher to authorize the deposit of $240,000 into the Pension Fund
checking account from cash obtained from the fixed assets accounts.
Ayes: Meyer, Fisher, Ducak, Foerster,
Absent: Prust
Abstain: None
Motion carried
e) Semi -Annual Review of Police Pension Fund Investment Policy: No changes were recommended.
Unfinished Business:
a) April 20, 2015 Elections: The following Trustees were re-elected and/or appointed to the board:
Active: Kelly Ducak and Marc Fisher
Beneficiary: Jeffrey Foerster
Appointed: Ormel Prust
b) Bills: The following bills were presented for approval:
Capital Gains, Inc.:
$5,088
Capital Gains, Inc.:
$5,002
Trustee Meyer Training Reimbursement
$200
IPPFA (Trustee Training for O. Prust)
$150
Motion by J. Meyer, seconded by K. Ducak to approve payment of bills as presented.
Ayes: Meyer, Ducak, Fisher, Foerster
Absent: Prust
Abstain: None
Motion carried
c) Training Update: In February, Trustees Foerster and Prust completed 8-hours of the mandatory 16
annual hours of Public Pension Trustee Training and in March, Trustee Meyer completed 9-hours of 16
required annual hours.
New Business
a) Approval of written application from Daniel A. King to implement Disability Pension Option:
K. Ducak made a motion, seconded by M. Fisher to approve the request as presented.
Ayes: Ducak, Fisher, Meyer, Foerster
Absent: Prust
Abstain: None
Motion carried
Adjournment
J. Meyer made a motion, seconded by M. Fisher to adjourn the meeting.
`.. Ayes: Meyer, Fisher, Ducak, Foerster
Absent: Prust
Abstain: None
Motion carried
The meeting was adjourned at 4:00 PM.
Respectfully submitted,
Marci Geraghty, cordil Secretary
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