08-08-2002 Regular Meeting MIAMI SHORES VILLAGE
GENERAL EMPLOYEE PENSION BOARD
REGULAR MEETING
AUGUST 8, 2002
1. CALL TO ORDER
The regular meeting of the Miami Shores Village General Employee Pension Board was held on Thursday,
August 8,2002 in the Conference Room of the Village Hall. The meeting was called to order at 8:05 A.M.
2. ROLL CALL
In order for the record to reflect those present the roll was called with the following members present:
Present Absent
Al Davis,Chairman Tom Benton
Mary Ross Agosta Wendy Reiner Henry Courtney
Joseph Charles Richard Trumble
Also Present:
Steve Cypen,Pension Board Attorney Janna K.Woods,Davis,Hamilton,Jackson
Mark A.Malatak,Plan Administrator Carl O'Connell&Ryan Fitzpatrick,The Boston Company
Lisa Keeley,Recording Secretary Jeff Swanson,Merrill Lynch
3. APPROVAL OF MINUTES—May 9,2002
Mr.Cypen requested that in those also present,the money managers also be included. He also indicated that in
5A.line 3,the comparison of equity returns to 5B,line 2 should be the Russell 1000 Growth for Davis Hamilton
Jackson and the Russell 1000 Value for the Boston Company. Also in 513,line 4 there is a typographical error
with the Merrill Lynch Government/Corporation which should read Merrill Lynch Govenunent/Corporate. Mr.
Cypen also found an error in 5A reporting the fixed income comparison to the Merrill Lynch
Government/Corporation return of -0.6%. This should be compared to the Lehman Intermediate
GovernmendCorporate return of-0.2%.
Mr.Trumble moved for approval of the May 9,2002 minutes with the recommended amendments. Mr.Charles
seconded the motion. The motion to approve passed unanimously.
4. APPROVAL OF PAYMENT WARRANT
Mr.Trumble moved for approval of payment warrant G No.02-3 as submitted. Mrs.Ross-Agosta seconded the
motion which was passed unanimously.
5A. INVESTMENT MANAGER REPORT-The Boston Company-Carl O'Connell&Ryan Fitzpatrick
Mr.O'Connell reported that the fund's total market value as of June 30,2002 was$3,392,154. The total return
for the quarter was-6.5%; with a-12.5%loss on equities compared to the Russell 1000 Value of-8.5%. Mr.
Fitzpatrick reviewed the 4.2%fixed income return which beat the 3.8%Merrill Lynch Government/Corporate
return.
General Employee Pension Board August 8,2002 Page 2
5B. INVESTMENT MANAGER REPORT-Davis,Hamilton,Jackson&Associates-Janna Woods
Ms. Woods reviewed the performance of the fund with a total market value of$3,3 58,104 as of June 30,2002.
The total return for the period was-6.1%;the equity loss of-13.4%compared to the Russell 1000 Growth return
of-18.7%and the fixed income return of 3.7%just beating the Lehman Intermediate Govemment/Corporate
return of 3.5%.
Mr. Cypen noted that Davis, Hamilton, Jackson should provide a comparison that meets the
guidelines set by the Board. Ms. Woods confirmed they would make that addition.
6. CONSULTANTS REPORT-Merrill Lynch—Jeff Swanson
Mr.Swanson reviewed the investment manager's returns for the quarter ending June 30,2002. He indicated that
the market has been in one of the longest and deepest bear markets since the 1970's. The fund ranked in the
bottom twenty-one percent compared to the public balanced public fund sample.
Mr. Swanson recommended that the policy benchmarks be reviewed at the next Board meeting as the new
managers were transitioned into the existing policies rather than contouring a policy to meet the style of
management by each manager.
Mr. Swanson addressed international investing by suggesting the Board allow the money managers to invest in
ADR's. The fund is not large enough to hire an international investment manager at this time.
8. OTHER BUSINESS
There was no other business.
9. ADJOURNMENT
IThe Au t 2002 regular meeting of the General Employee Pension Board was adjourned at 9:35 AM.
Al Davis,Chairman Lisa Keeley,Recording Secretary