Loading...
HomeMy WebLinkAboutMinutes - 10/09/2012 - Police Pension BoardOctober 9, 2012 Police Pension Board of Trustees Meeting A meeting of the City of McHenry Police Pension Board of Trustees was called to order at 3:40 PM by President Jeffrey Foerster. Other board members present: Jon Meyer, Robert Roske, and Ormel Prust. Absent: Daniel Kreassig. Others present: Gary Karshna, Capital Gains, Inc.; Jim Schmidt, LPL Financial; Finance & Accounting Manager Carolyn Lynch; and recording secretary Marci Geraghty. Public Input None. Approval of Minutes The minutes from the July 10, 2012 meeting were presented. Gary Karshna suggested amending the first sentence on page 3, paragraph 3 as follows: "Karshna stated the fund is positioned primarily in high yield, short term securities. As interest rates rise, the market value of the fixed income securities in your portfolio declines." Prust made a motion, seconded by Roske to approve the minutes from July 10, 2012 as amended and to hold them for audit. All ayes, motion carried. Consideration of Draft Board of Trustees Administrative Rules `-- Foerster reported, Dick Puchalski's office was asked to prepare an Administrative Rules documents as required by state statute. As discussed at the last meeting a representative from Puchalski's office was of the opinion the state statute did not require the board to appoint a vice-president and assistant secretary and those positions were eliminated from the document. Upon further review, the opinion has been reversed and the board is required to elect a vice-president and assistant secretary. Also, the document has been amended to include said language. Meyer made a motion, seconded by Roske to approve the Board of Trustees of McHenry Police Pension Fund Administrative Rules as amended. Ayes: Meyer, Prust, Foerster, Roske Absent: Kreassig Abstain: None Motion carried. Annual Election of Board Officers Vice President: Prust nominated Meyer nominations. All ayes, motion carried. Ayes: Meyer, Prust, Roske, Foerster Absent: Kreassig Abstain: None Motion carried. Prust made a motion, seconded by Roske to close Assistant Secretary: Roske nominated Daniel Kreassig. Meyer made a motion, seconded by Prust to close nominations. Ayes: Meyer, Prust, Foerster, Roske `- Absent: Kreassig Abstain: None Motion carried. Roske made a motion, seconded by Prust to appoint Jon Meyer as Vice -President. Ayes: Meyer, Prust, Foerster, Roske Absent: Kreassig Abstain: None Motion carried. Roske made a motion, seconded by Meyer to appoint Daniel Kreassig as Assistant Secretary. Ayes: Meyer, Prust, Foerster, Roske Absent: Kreassig Abstain: None Motion carried. Treasurer Report Carolyn Lynch presented the Treasurer Report for the period ending September 30, 2012 with a total value of cash and investments at $18,099,286.17. Lynch reported the fund increased 5% from the last `- quarter and $1,202,000 budgeted for property taxes has been received. Ms. Lynch distributed a Cash Analysis for FY12-13. She told the board cash will be short in May with a ($49,897.77) balance, and suggested retaining the money from the recently expired CD until property tax receipts are received from the state. Motion by Prust, seconded by Meyer to approve the Treasurer Report for the period ending September 30, 2012 as presented and to hold it for audit. Ayes: Meyer, Prust, Foerster, Roske Absent: Kreassig Abstain: None Motion carried Consideration of Investment Strategies. None to report. Investment Reports a) LPL Financial: Jim Schmidt of LPL Financial presented the equities report for the period ending October 8, 2012. Value of the fund for the period was $8,293,332. Mr. Schmidt noted Ivy Asset Strategy performed badly last quarter however the fund has the ability to move money around more easily than the American Funds. Fifteen -percent of IVY Assets funds are 2 invested in gold. Gold and silver have been trading in tandem with the stock market, but when inflation kicks -in gold will probably outperform the market. Mr. Schmidt also provided the board with a "Performance to Benchmark Summary," He compared the pension fund against the S&P. Returns for asset classes and their corresponding benchmarks are weighted on the time the asset class was held during the report period, which may be less than the time the group or account was held during the report period. Schmidt noted in 2012 it was difficult to beat the S&P, with the exception of the Large Cap Growth Fund. Forester noted the fund's initial investment in 2003 was $3,809,029 and the fund has increased to $8,293,332. This also includes $900,000 placed into the equities fund in the past two years. Schmidt reported he is positive about investing in the market. b) Capital Gains, Inc.: Gary Karshna provided a report on fixed assets for the period ending September 30, 2012. He reported the portfolio continues to outperform the benchmark Barclays Intermediated Government Bond Index by a significant margin. Barclays: 2.39% McHenry Police: 4.02% Forty-five percent of the fund is invested in short term securities. If interest rates rise, the fund is insulated that is why he is deliberately keeping the portfolio short. Portfolio Market Valuation $9,180,705 Portfolio Book Valuation $8,976,006 Capital Gains will continue to monitor the impact domestic and global events may have on the financial markets and adjust the fixed income portfolio accordingly. Semi-annual review of Investment Policy This matter was tabled to the January meeting. Public Pension Training Update Training opportunities for the IPPFA 2013 Certified Trustee Program was reviewed by the board. Trustee Prust has four hours of state mandated training to complete. The board discussed various options for which state required training can be completed. Eschbach Application for Disability Appeal Update Foerster reported there was nothing to report at this time. The case is still pending in the Appeals Court. Bills for Approval Motion by Meyer, seconded by Roske to authorize payment of the following bills as presented: Capital Gains, $5,002 Attorney Richard Puchalski for services relating to the Eschbach case, $3,857.68 Attorney Richard Puchalski, Administrative Rules and Regulations, $600 3 Dr. Gold for Dan King annual disability examination, $425 Dr. Paperella for Dave Porter annual disability examination, $309 President Forester called for a roll call vote: `-- Meyer aye Prust aye Foerster aye Roske aye Absent: Kreassig Abstain: None Motion carried. Adjournment Roske made a motion, seconded by Prust to adjourn the meeting. Ayes: Meyer, Prust, Foerster, Roske Absent: Kreassig Abstain: None Motion carried. The meeting was adjourned at 4:40 PM. Next meeting is January 9, 2013 Respectfully submitted, Marci Geraghty, Reco ing S cretary 0