08-12-2004 Regular Meeting MIAMI SHORES VILLAGE
GENERAL EMPLOYEE PENSION BOARD
REGULAR MEETING
AUGUST 12, 2004
1. CALL TO ORDER
The regular meeting of the Miami Shores Village General Employee Pension Board was held on Thursday,
August 12,2004 in the Conference Room of the Village Hall. The meeting was called to order at 8:07 A.M.
2. ROLL CALL
In order for the record to reflect those present the roll was called with the following members present:
Present
Mary Ross Agosta Joseph Charles
Angela Dorney John Rumble
Absent
Mayor Jim McCoy,Chairman
Tom Benton Wendy Reiner
Also Present: Steve Cypen,Pension Board Attorney
Mark A.Malatak,Plan Administrator
Lisa Keeley,Recording Secretary
EMERGENCY ITEM—Election of Acting Chairperson
Due to the absence of Chairman McCoy,Mr. Charles moved that Mrs.Ross Agosta be appointed as acting
chairman for the August 12,2004 General Employee Pension Board meeting. The motion was seconded by
Mr.Rumble. The vote was unanimous in favor.
3. APPROVAL OF May 13,2004 MINUTES
Mr.Charles moved for approval of the May 13,2004 minutes as submitted. Mrs.Dorney seconded the motion.
The motion to approve passed unanimously.
4. APPROVAL OF PAYMENT WARRANT—General Employee Warrant No.2004-004
Mr.Charles moved for approval of payment warrant General Employee Warrant No.2004-004 as submitted.
Mr.Rumble seconded the motion which was passed unanimously.
5A. INVESTMENT MANAGER REPORT-The Boston Company-Carl O'Connell
Mr.O'Connell reported that the fund's total market value as of June 30,2004 was$3,712,958. The total return
for the quarter was-0.6%;with a 0.6%return on equities compared to the Russell 1000 Value of 0.9%. The
-3.1%fixed income return equaled the Merrill Lynch Government/Corporation return.
General Employee Pension Board August 12, 2004 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$3,615,049 as of June 30,2004.
No return for the period was comprised of the equity return being 1.2%just under the Russell 1000 Growth return
of 1.9%and the fixed income return being-2.3%compared to the Lehman Govemment/Corporation return
of-3.2%.
6. CONSULTANTS REPORT-Merrill Lynch—Jeff Swanson
Mr. Swanson reviewed the investment manager's returns for the quarter ending June 30,2004. The total market
value of the fund was $7,319,930 a net decrease of$22,683. The fund ranked in the bottom thirty-seventh
percent compared to the public balanced public fund sample. Mr. Swanson indicated that both managers fell
within the investment policy parameters.
Mr. Swanson briefly discussed the rankings of Merrill Lynch services. He also touched on the"pay-to-play"
issues brought on by recent media attention.
7. OTHER BUSINESS
An international investment presentation was given by Jeff Swanson of Merrill Lynch. Mr. Swanson provided a
list of international investment managers based on investment strategy,diversification and the cost of custody.
He indicated that the plan was currently at 3% exposure to international equity based on ADR's. He
recommended utilizing a co-mingled fund in order to decrease the costs. Mr.Swanson spoke of the EAFE index
which measures international investment managers risk and return values.
There was a brief discussion regarding ADR's in which current plan dollars are being invested. The possibility of
expanding the current foreign investment restrictions to include non-ADR investing by adding the 10%foreign
restriction of investment dollars to include any foreign company listed on a major United States stock exchange
was discussed as well.
Since The Boston Company was a listed candidate in the Merrill Lynch presentation,Carl O'Connell was ready to
make a presentation to the Board. However,this was deferred until such time the Board has made a firm decision
in international investing.
8. ADJOURNMENT
Mary Ross Agosta left at this time leaving the Board with no quorum. The August 12,2004 regular meeting of
the General Employee Pension Board was adjourned at 9:30 AM.
Mary Ross Agosta,Acting Chairperson Lisa Keeley,Recording Secretary