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12-10-2009 Regular Meeting MIAMI SHORES VILLAGE GENERAL EMPLOYEE PENSION BOARD REGULAR MEETING DECEMBER 10, 2009 1. CALL TO ORDER The regular meeting of the Miami Shores Village General Employee Pension Board was held on Thursday, December 10, 2009 in the Conference Room of the Village Hall and was called to order at 8:30 A.M. 2. ROLL CALL In order for the record to reflect those present,the roll was called with the following members present: Present Angela Dorney .Averill Dorsett Tom Benton James McCoy Betsy Heagle Absent Mary Ross Agosta Donald Shockey Also Present: Steve Cypen, Pension Board Attorney Lisa Keeley,Interim Plan Administrator/Recording Secretary 3. ELECTION OF ACTING CHAIRPERSON FOR MEETING Mrs.Dorney moved that Ms.Dorsett be elected acting chairperson for today's meeting. Mr.Benton seconded the motion which passed unanimously. 4. APPROVAL OF PAYMENT WARRANT—General Employee Warrant No.2010—001 Mr.Benton moved for approval of payment warrant General Employee Warrant No.2010—001 as submitted. Mrs. Dorney seconded the motion which was passed unanimously. 5. INVESTMENT MANAGER REPORT—Heartland Advisors,Michael Petroff Mr.Petroff was introduced as the representative from Heartland Advisors,managing the all cap value strategy for the Plan. He provided an overview of the company and its investment philosophy. A question regarding restrictions on the company's personnel owning stock in which the company has invested was posed. Mr. Petroff indicated that employees were not able to invest in small cap stocks. Mr.Cypen requested a copy of the Heartland Code of Ethics. Mr. Petroff indicated he would provide a copy. A performance review of the investment manager's returns for the quarter ending September 30,2009 was provided. The fund returned 20.33%just ahead of the 18.59%return of the Russell 3000 Value Index. General Employee Pension Board December 10,2009 Page 2 6. INVESTMENT CONSULTANT REPORT—Bogdahn Group,Bryan Bakardjiev Mr.Bakardjiev reviewed the investment manager's returns for the quarter ending September 30,2009. The total market value of the fund was$7,860,866,a net increase of$862,076. The total fund returned 12.31%net of fees or.81%more than the median. The domestic equity portfolio return of 17.38%beat the US Core Large Cap Equity Median return of 15.25%. The international equity portfolio returned 19.37%, outpacing the International Equity Multi-Cap Core Funds Median return of 18.68%. The fixed income portfolio return of 3.13% lagged behind the US Broad Market Core Fixed Income Median return of 4.71%. The plan ranked in the thirty-third percentile compared to all public plans in the Total Fund Median. 7. DISCUSSION AND POSSIBLE ACTION REGARDIN FIXED INCOME MANAGER SELECTION—Bogdahn Group,Bryan Bakardjiev Mr.Barkardjiev began discussion regarding the fixed income manager,The Boston Company. At the Boston Company's request to divest from the fixed income market, an Investment Manager Evaluation for a Core Fixed Income was presented to the Board. Discussion regarding fixed income managers ensued. It was decided that three of the managers present at a special meeting. The Board elected to hear from Integrity, Sawgrass and a third manager to be selected by the investment consultant. Mrs. Keeley was instructed to arrange a meeting for January providing there is a quorum. 8. OTHER BUSINESS—Bogdahn Group,Bryan Bakardjiev As the fixed income manager may change,Mr.Bakardjiev provided a revised investment policy for review by the Board. Suggested changes include the fixed income manager language with the appropriate benchmarks and other statutory required language. 9. ADJOURNMENT The December 10,2009 regular meeting of the General Employee Pension Board was adjourned at 10:15 AM. Averill Dorsett, Acting Chairperson Lisa Keeley, Recording Secretary General Employee Warrant - No. 2010 - 001 For payment from the Village Pension Fund for General Employees in the Village of Miami Shores,Florida. To Chair and Administrator,or such other officers,who from time to time are duly designated and authorized by the Board of Trustees of said Fund,to sign checks,drafts or orders for the payment of money;You are hereby authorized by the Board of Trustees of the Miami Shores Village Pension Fund for General Employees in Miami Shores Village to pay the amounts listed below for services rendered to the said Board of Trustees,and to pay the persons named below,hereby certified by the Board of Trustees as being on the Pension list of said Board by circulation of this warrant,pensions from 09/11/09 to 12/10/09 inclusive,or for the period of time opposite the name of said persons. Name(Pensions,Benefits,Services Provided or Obligations) Amount To be paid by Trustee: Authorize payment to Aletheia Research and Management,Inc Quarterly management fees for the period 07/01/09—09/30/09 $ 3,725.41 Authorize payment to Boston Company Quarterly management fees for the period 01/01/09—03/31/09 $ 6,473.39 Quarterly management fees for the period 07/01/09—09/30/09 $ 6,754.41 Authorize payment to Heartland Advisors Quarterly management fees for the period 07/01/09—09/30/09 $ 2,404.00 Authorize payment to The Bogdahn Group Quarterly consulting fees for the period 07/01/09—09/30/09 $ 4,500.00 Authorize payment to Salem Trust Company Quarterly fee for period 07/01/09—09/30/09 $ 1,175.15 Authorize payment to Cypen&Cypen Legal Counsel Services through 02/12/09 Invoice date 03/01/09 $ 1,125.00 Legal Counsel Services through 09/10/09 Invoice date 10/01/09 $ 400.00 Authorize payment to Holland&Knight,LLP Legal Counsel Services through 08/18/09 Invoice date 2430906 $ 100.00 aa&14�r Dated this 10th day of December,2009 Approved by: Averill Dorsett,Acting Chairperson As Chair of the Board of Trustees Village Pension Fund for Police Officer's in the Village of Miami Shores,Florida