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11-24-2008 Special Meeting MIAMI SHORES VILLAGE GENERAL EMPLOYEE PENSION BOARD SPECIAL MEETING NOVEMBER 24,2008 1. CALL TO ORDER The special meeting of the Miami Shores Village General Employee Pension Board was held on Monday, November 24,2008 in the Conference Room of the Village Hall and called to order at 8:20 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 Averill Dorsett Tom Benton James McCoy Also Present: Steve Cypen,Pension Board Attorney Lisa Keeley,Interim Plan Administrator/Recording Secretary EMERGENCY AGENDA ITEM-ELECTION OF ACTING CHAIRPERSON FOR MEETING Mr.Benton moved that Ms.Dorsett be elected acting chairperson for today's meeting. Mr.Charles seconded the motion which passed unanimously. 3. DISCUSSION AND POSSIBLE ACTION REGARDING THE INVESTMENT POLICY STATEMENTS—Bryan Bakardjiev,The Bogdahn Group Mr. Bakardjiev indicated that the appropriate changes had been made as recommended by Mr. Cypen. The addendums include the appropriate benchmark for the type of managed fund. Discussion on this item blended with Item#4 as the selection of a new manager would add an additional addendum to the IPS. Ms. Ross-Agosta arrived at this time. 4. INVESTMENT CONSULTANT RECOMMENDATIONS WITH DISCUSSION AND POSSIBLE ACTION—Bryan Bakardjiev,The Bogdahn Group At the Board's request,the Bogdahn Group prepared an Investment Manager Review of Value Equity Managers. The recommendation report ranked the managers by trailing performance returns,trailing rank vs. the US All Cap Value Universe, calendar year performance,manager risk/return,annualized excess return. General Employee Pension Board November 24,2008 Page 2 4. INVESTMENT CONSULTANT RECOMMENDATIONS WITH DISCUSSION AND POSSIBLE ACTION—Continued-Bryan Bakardjiev,The Bogdahn Group Mr. Bakardjiev reviewed each manager's strengths and costs. - Anchor provides a high dividend yield with a better down capture ration. - Heartland has a low PE ratio using comingled funds at a cost of 85 basis points. - Moody Aldrich has more risk with similar returns to the other managers at a cost of 100 basis points. Mr. Benton moved to replace the current manager Royce Pennsylvania with Heartland with a second by Mr. Charles. The motion passed unanimously. In order to have an equal distribution between the equity managers, a motion to equalize the value of equity between Heartland and the Boston Company at 50% for domestic value equity by transferring approximately$500 from the Boston Company to Heartland was made by Ms. Ross-Agosta. Mr. Benton seconded the motion which was unanimous in favor. 3. DISCUSSION AND POSSIBLE ACTION REGARDING THE INVESTMENT POLICY STATEMENTS—Continued-Bryan Bakardjiev,The Bogdahn Group Mary Ross Agosta moved to approve the Investment Policy Statements as submitted adding Heartland as the All Cap Value Equity Manager and correcting the numbering on the addendum. Mr. Benton seconded the motion which passed unanimously. 5. OTHER BUSINESS There was no other business. 6. ADJOURNMENT The vember 24,2008 special meeting of the General Employee Pension Board was adjourned at 9:40 AM. Averill Dorsett, Acting Chairperson Lisa Keeley,Recording Secretary