MIAMI SHORES VILLAGE-GE-04-24-2018-APPROVED-7-31-20181
MIAMI SHORES VILLAGE
GENERAL EMPLOYEE PENSION BOARD MEETING
The Miami Shores Village General Employee Pension Board and Police Retirement Board jointly met on
Tuesday, April 24, 2018 at the C. Lawton McCall Community Center. The General Employee Pension Board
meeting called to order at 8:19 AM. The following individuals were present for the meeting:
PRESENT: ABSENT:
Mac Adam Glinn, Chairman Tom Benton, Secretary
Angie Dorney, Trustee Averill Dorsett, Trustee
Jim McCoy, Trustee Thomas J. Longman, Trustee
Bob Williamson, Trustee
Also present were Pension Plan Administrators, Doug Falcon and Yolanda Shea, FHA-TPA Benefit
Administrators, Inc., Dave West, AndCo Consulting, and Pension Attorney Adam Levinson, Klausner Kaufman
Jensen & Levinson.
APPROVAL OF MINUTES
The Chairman asked if anyone had any questions regarding the minutes of the meeting January 23, 2018,
there being no questions,
A motion made by Trustee Dorney seconded by Trustee Williamson to approve the January 23, 2018
minutes motion passed unanimously.
PUBLIC COMMENT:
None
APPROVAL OF PAYMENT WARRANT: 2018-0004
The Chairman asked if there were any questions regarding Warrant 2018-004 for $1,075.00, there being no
further questions,
Trustee Dorney moved to approve the payment of Warrant number 2018-0004 for $1,075.00 Trustee
Williamson seconded the motion, the motion passed unanimously.
RATIFY PAYMENT WARRANTS: 2018-001 through 2018-003
The Chairman asked if the Board would like to approve all the warrants combined,
A motion made by Trustee Dorney seconded by Trustee McCoy to approve all the warrants
combined motion passed unanimously.
The Chairman asked if anyone had any questions regarding Warrant 2018-001-$1,517.50, 2018-002 -
$11,958.42 and Warrant 2018-003-$13,662.77 there being no questions,
Trustee Dorney moved to ratify payment Warrants 2018-001 through 2018-003 as stated above Trustee
Williamson seconded the motion, the motion passed unanimously.
2
INVESTMENT
Mr. West presented the Miami Shores Village General Employees’ Pension Fund Investment Performance
Review Period Ending March 31, 2018.
A few of the market status were as follows:
Market returns were broadly negative across major equity and fixed income indices as they finished a
highly volatile 1st. quarter of 2018. Broad domestic and international equity markets pulled back modestly
following a very strong 2017.
International equity market benchmarks were mixed with developed markets posting modestly negative
returns and emerging markets earning a slightly positive result. This is a continuation of the 2017 trend
of emerging market outperformance relative to developed market equities.
Interest rates on the US Treasury Yield Curve ended the 1st quarter of 2018 higher across all maturities.
The movement in rates was considerable during the quarter as markets reacted to the greater likelihood
of increasing inflation and a more restrictive than expected US monetary policy going forward.
Us equity index returns were mixed across the style and capitalization spectrum to start 2018 with growth
indices being the best performers.
During the quarter, small cap stocks outperformed mid and large cap equities. The small cap Russell
2000 Index returned -01% during the period, while the large cap Russell 1000 Index returned -0.7%.
Growth indices outperformed value indices across the market cap spectrum for the fifth straight quarter
and were all able to post a positive return for the 1st quarter of 2018.
Sector performance was largely negative across large cap sectors for the 1st quarter of 2018. Only two of
eleven sectors had positive returns for the quarter and only three of eleven economic sectors outpaced
the Russell 1000 Index return.
Small cap sector results were mixed relative to their large capitalization counterparts. Only three of
eleven economic sectors outpaced the Russell 2000 Index return for the quarter and posted positive
results for the period.
Using S&P 500 sector valuations as a proxy for the market, forward P/E ratios for eight of the GICS
sectors were higher than their long-term averages a quarter-end.
Mr. West pointed out that although Insight investment is a fixed income manager with low interest, it has
been down in terms of investment results and while he is not suggesting terminating Insight at this time, he
is suggesting that at the next meeting they review other options in terms of bond managers. Attorney
Levinson advised the Trustees that once they see the various options presented by Mr. West, if they wish
they can have the managers come to a meeting and present their product. The Board asked Mr. West to
perform a review of the various bond managers and report at the next meeting his findings.
This concluded the investment report.
3
ATTORNEY
Attorney Levinson reminded the Board to complete Form 1 and asked the administrator to circulate the form
to all the Trustees to ensure they are sent in to the state by the deadline date of June 30th.
This concluded the attorney’s report.
ADMINISTRATOR
Mr. Falcon advised the Board that Cutwater Investor Services Corp. acquired Insight Investment and because
of the name change, they are asking the new Investment Management Agreement be executed. Attorney
Levinson advised the Board that he has read the agreement, and sees nothing on the agreement that locks
them for a specific period. The agreement allows them to terminate the business relationship at any time.
A motion made by Trustee Dorney seconded by Trustee McCoy to authorize the Chairman to sign the
Cutwater Investor Services Corp., Investment Management Agreement Amendment, motion passed
unanimously.
Mr. Falcon also advised the Board that along with the amended agreement Cutwater Investor is requesting an
updated authorization form with the names of both Mr. West and himself. The purpose of this authorization
is to ensure that Cutwater Investments accepts direction from Mr. West and himself regarding the investment
advisory account. For example, the letter of direction to Cutwater Investor would be in instances where they
need to raise funds to cover pension plan related expenses.
A motion made by Trustee Dorney seconded by Trustee Williamson to authorize the Chairman to sign the
new authorization document as stated above motion passed unanimously.
Mr. Falcon advised the Board that Karen Russo from Salem Trust would like to visit both boards; the Trustees
asked Ms. Russo visit at the October pension meeting.
The next pension meeting will be July 31, 2018
This concluded the administrator report.
There being no further business a motion made by Trustee Dorney seconded by Trustee McCoy to adjourn
the meeting at 9:53 a.m.
Approved: At pension meeting 7/31/2018