Police Pension Board - September 24, 2014MIAMI SHORES VILLAGE
POLICE RETIREMENT PENSION BOARD MEETING
The Miami Shores Village Police Retirement Pension Board and the General Employee Pension Board
jointly met on Wednesday, September 24, 2014 at the C. Lawton McCall Community Center. The Police
Retirement Pension Board meeting was called to order at 8:25 AM. The following individuals were
present for the meeting:
POLICE RETIREMENT PENSION BOARD
Hunt Davis
Ivonne Ledesma
Cliff Vickers
John Bolton
Also present were Elizabeth Keeley, Plan Administrator, Dave West of the Bogdahn Group and Pension
Attorney Steve Cypen.
APPROVAL OF MINUTES – July 11, 2014
Ms. Ledesma moved approval of the July 11, 2014 Board meeting Minutes. Officer Vickers seconded the
motion and the vote was unanimous in favor of the motion.
APPROVAL OF PAYMENT WARRANT: 2014-004
Ms. Ledesma moved to approve payment warrant #2014-004. Officer Vickers seconded the motion and
the vote was unanimous in favor of the motion.
INVESTMENT CONSULTANT REPORT
Mr. Dave West from The Bogdahn Group provided information regarding the Plan’s performance as of
8/31/14 as well as the quarterly fund performances. Mr. West spoke of the overall strong markets.
Mr. West further advised that the Heartland Group underperformed and had been in a “watch” status
with the Bogdahn Group but that there had recently been a vote of no confidence in the Fund. Mr.
West stated his recommendation that at the close of the fiscal year, funds from the Heartland Group be
transitioned to the Vanguard S & P 400 Index fund and provided the Board with the rational for the
recommendation. Board Members questioned the performances of a number of the other Funds,
including Wells Fargo and Manning & Napier. Mr. West explained the investment strategies used by
Wells Fargo and Manning & Napier and that the Bogdahn Group is not concerned regarding their
performances. The Board asked that Mr. West watch those Fund performances for possible future
action. Mr. West will be forwarding a one page Fund summary on a monthly basis to Elizabeth Keeley
for distribution to the Board Members.
Subsequent to these discussions, Ms. Ledesma moved to follow the recommendation of the Bogdahn
Group and transition funds from the Heartland Group into the Vanguard S & P 400 Index following the
close of the fiscal year. Officer Vickers seconded the motion and the vote was unanimous in favor of the
motion. At the suggestion of Mr. West and Mr. Cypen, Mr. Bolton moved to approve the use of a
transition manager to effect the approved Fund transition. Ms. Ledesma seconded the motion and the
vote was unanimous in favor of the motion.
Ms. Keeley announced that the next Board Meeting was tentatively scheduled for Thursday, October
30th.
Ms. Ledesma asked to have a discussion regarding the asset allocation and thereafter moved to add a
discussion item to the agenda regarding asset allocation. Mr. Bolton seconded the motion and the vote
was unanimous in favor of the motion. Ms. Ledesma spoke of her concern regarding the percentage of
funds in the equities account and wanted to be able to have the discussion now so that the Board could
plan on making changes in 6 months to a year if feasible. Ms. Ledesma was advised that an investment
policy is in place, approved by the Board, which targets the allocation percentages. Mr. West spoke of
the Bogdahn Group’s objective approach with institutional pension funds and the objective to keep
target investments in balance. Mr. West spoke of the 60/40 split between Equity accounts and other
investment types which are relatively conservative in comparison to the peer group of government
pension programs. Mr. West indicated that it is not The Bogdahn Group’s policy nor is it recommended
that the Board attempt to time market changes. There was no action taken at the conclusion of the
discussion.
The Police Retirement Pension Board meeting was adjourned at 10:00 AM.
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Hunt Davis, Chair
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Barbara A. Estep, MMC
Village Clerk