HomeMy WebLinkAboutMinutes - 01/02/2018 - Police Pension BoardPolice Pension Board of Trustees
January 2, 2018, 2:30 PM
1. Call to Order. A meeting of the City of McHemy Police Pension Board of Trustees was called
to order at 2:30 PM in the McHenry City Council Chambers, 333 S. Green Street., McHenry,
IL.
2. Roll Call: President Jeffrey Foerster, Jon Meyer, Ormel Prust, Marc Fisher and Nicic Clesen.
Others present: Jim Schmidt, LPL Financial; Gary Karshna, Capital Gains, Inc.; City Treasurer
Carolyn Lynch, and recording secretary Marci Geraghty,
3. Public Input
None.
4. Approval of Minutes
O. Prust made a motion, seconded by J. Meyer to approve meeting minutes from October 10,
2017 as presented to hold them for audit.
Ayes: Prust, Meyer, Clesen, Fisher, Foerster
Motion carried
5. Serni-Annual
Review of
Executive
Session
Minutes.
There
remains no closed
Executive
Session
Minutes.
6. Investment Reports.
a) Motion to approve the Treasurer's Repot•t.
Treasurer Lynch presented the Treasurer's Report for the period ending December 31,
2017. Cash and investments totaled $25,623,030.70 and equities were at 60.60%.
Motion by J. Meyer, second by O. Prust to approve the Treasurer's Report as presented.
Ayes: Meyer, Prust, Clesen, Fisher, Foerster
Motion carried.
b) LPL Financial Equities Report.
Equities Portfolio Performance
December 29, 2017. For the y
Value of the portfolio at the er
investment.
Mr. Jim Schmidt
from LPL
Summary for the period from
;ar, $6,784,420.77 in net dollar
d A 2017 was $15,527,360.20
Financial presented the
December 29, 2016 to
s were invested; Market
for 22.87% return on
President Foerster noted the percentage of equities invested is getting close to the 65%
limit. Mr. Schmidt stated at the end of the fiscal year, the percentage may be no higher
than 65% - the law allows for inadvertent fluctuations throughout the year.
c) Capital Gains Fixed Assets Investment Report: Fixed Assets Manager Gary Karshna
presented the investment report for the period ending November 30, 2017, at which time the
estimated Market Valuation was $9,200,286 and Book Valuation $9,100,413.
The bond portfolio produced a 1.23% rate of return versus .64$ for the bond benchmark
fiscal year to date. Mr. Karshna reported he is using a blended Bond Benchmark using the
Barclays Intermediate Government Bond Index and the Barclays Aggregate Intermediate
Corporate Bond Index. Currently, the portfolio has 58% in corporate bonds and 42% in
government bonds and we can use that ratio to create a blended bond benchmark and adjust
it to reflect accurately the exact holdings in the portfolio each month.
J. Meyer asked Mr. Karshna why the Bloomberg index was not being used. Mr. Karshna
stated that it made more sense to use a blended index. A discussion ensued on the duration
of the portfolio and the benefits of purchasing shorter -duration instruments at this time in
the market.
7. Motion to approve Applications for Participation in the City of McHenry Police Pension Fund
submitted by Officer Katelyn M. Lorenz and Officer Roger J. Hendrickson.
Motion by N. Clesen, second by Fisher to approve the applications to join the McHenry Police
Pension Fund as presented.
Ayes: Clesen, Fisher, Meyer, Prust, Forester
Motion carried.
8. Motion to approve annual pension increases.
M. Fisher made a motion, seconded by N
presented.
Ayes: Fisher, Clesen, Meyer Prust, Foerster
Motion carried.
9. Unfinished Business:
Clesen to approve annual pension increases as
a) Motion to approve pUment of bills as presented.
Motion by J. Meyer, second by N. Clesen to approve payment of the following bills:
IPPFA annual dues for $795
Lauterbach & Amen Actuarial Services: $4,750
Capital Gains: $5,000
Ayes: Meyer, Clesen, Prust, Fisher, Foerster
2
Motion carried.
10. Adjourn.
Motion by O. Prust, second by J. Meyer to adjourn the meeting.
Ayes: Prust, Meyer, Clesen, Fisher, Foerster
Motion carried.
The meeting adjourned at 3:30 PM.
Next meeting: July 10, 2018, 2:30 PM.
Respectfully submitted,
n
Marci Geraghty, Recording Secretary
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