09-09-2010 Regular Meeting s
MIAMI SHORES VILLAGE
GENERAL EMPLOYEE PENSION BOARD
REGULAR MEETING
SEPTEMBER 9,2010
1. CALL TO ORDER
The regular meeting of the Miami Shores Village General Employee Pension Board was held on
Thursday, September 9,2010 at the Community Center and was called to order at 8:22 A.M.
2. ROLL CALL
In order for the record to reflect those present,the roll was called with the following members present:
Present
Tom Benton Angela Dorney
Betsy Heagle Averill Dorsett
Hunt Davis James McCoy
Absent
Mary Ross Agosta
Also Present: Lisa Keeley, Interim Plan Administrator/Recording Secretary
EMERGENCY AGENDA ITEM-ELECTION OF ACTING CHAIRPERSON FOR MEETING
Ms. Dorsett moved that Mr. Davis be elected acting chairperson for today's meeting. Mr. Benton
seconded the motion which passed unanimously.
3. APPROVAL OF MINUTES
Mr. Benton moved for approval of the minutes for May 15,2008,November 12,2008,November 24,
2008, February 12,2009, September 10,2009,January 21,2010 and June 3,2010 as submitted. Mrs.
Dorney seconded the motion which passed unanimously.
4. APPROVAL OF PAYMENT WARRANT—General Employee Warrant No.2010—007
Mr. Benton moved for approval of payment warrant General Employee Warrant No. 2010 — 007 as
submitted. Ms. Dorsett seconded the motion which was passed unanimously.
5. INVESTMENT CONSULTANT REPORT—Bogdahn Group,Bryan Bakardjiev
Mr. Barkardjiev discussed factors of the economy that affected market performance. He reviewed the
investment manager's returns for the quarter ending June 30, 2010. The total market value of the fund
was $7,705,422, a net decrease of $615,388. The total fund returned -6.92%. The domestic equity
portfolio return of-11.95%was just under the US Core Large Cap Equity Median return of-11.44%. The
international equity portfolio return of -12.83%, was below the International Equity Multi-Cap Core
Funds Median return of-12.33%. The fixed income portfolio return of 3.17% was also below the US
Broad Market Core Fixed Income Median return of 3.43%. The plan ranked in the eighty-fifth percentile
compared to all public plans in the Total Fund Median.
General Employee Pension Board September 9,2010 Page 2
6. OTHER BUSINESS
Mr.Bakardjiev made a presentation for the Board's consideration of possible portfolio blends. Given the
right allocations in the current plan asset mix, a rebalancing back to the target blend based on the
current investment policy statement should be considered.
After presenting an International Core Evaluation,he suggested that the Board consider changing the
International Manager from Artio to Manning&Napier. This would also reduce costs by 28 basis
points from 103 basis points. Artio has had average performance relative to the alpha at a higher cost.
There are no costs associated with the transition.
Mr. Benton moved to approve the transition from international manager,Artio to Manning&Napier.
Ms. Dorsett seconded the motion. The motion passed unanimously.
Mr. Bakardjiev noted that the Bogdahn Group was able to negotiate a reduced fee schedule of 25 basis
points with Aletheia. The current fees were 100 basis points and will be 75 going forward saving
approximately $5,000 annually. Mr. Bakardjiev noted he will contact the attorney, Steve Cypen to
prepare an addendum to the current contract for the reduced fee if need be. It was the consensus of the
Board to accept this recommendation.
In order to be proactive in reducing fees, Mr. Bakardjiev also discussed the fee structure of the custodian,
Salem Trust and the possibility of fee increases and restructuring to keep costs down.
Mr. Barkardjiev suggested that Boston Company present at a future meeting.
Mr. Bakardjiev made a recommendation to rebalance the plans asset classes back to the target ranges as
outlined in the Investment Policy Statement. It was suggested that the rebalancing of assets should be
automatically reviewed by the consultant on a continuing basis to follow the IPS guidelines. Assets can
become misaligned due to the different manager styles. These styles will perform differently from quarter
to quarter allowing for a wider swing of allocation. Mr. Bakardjiev noted that the Board will have to
provide a letter to Salem Trust providing the authorization. Ms. Dorsett moved to approve the
recommendation to authorize the consultant, the Bogdahn Group, to automatically make the necessary
adjustment to rebalance the asset allocations to within the ranges as outlined in the Investment Policy
Statement. Mr. Benton seconded the motion which passed unanimously.
Mr. Davis suggested that quarterly reports be provided to the Board as soon as readily available.
7. ADJOURNMENT
The September 9,2010 meeting of the General Employee Pension Board was adjourned at 9:40 AM.
Hunt Davis,Acting Chairperson Lisa Keeley,Recording Secretary
General Employee Warrant - No. 2010 - 007
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 06/03/10 to 09/07/10 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 04/01/10—06/30/10 $ 3,477.32
Authorize payment to Boston Company
Quarterly management fees for the period 01/01/10—03/31/10 $ 6,367.31
Quarterly management fees for the period 04/01/10—06/30/10 $ 2,802.10
Authorize payment to Cutwater Asset Management
Quarterly management fees for the period 04/01/10—06/30/10 $ 1,377.21
Authorize payment to Heartland Advisors
Quarterly management fees for the period 04/01/10—06/30/10 $ 2,425.00
Authorize payment to The Bogdahn Group
Quarterly consulting fees for the period 04/01/10—06/30/10 $ 4,500.00
Authorize payment to Salem Trust Company
Quarterly fee for period 04/01/10—06/30/10 $ 1,151.96
Authorize payment to Cypen&Cypen
Legal Counsel Services through 06/10/10 Invoice date 07/01/10 $ 425.00
For information only:
Ratify previously authorized Lump Sum Distribution
Shawn Broussard $ 535.93
Ratify previously authorized Lump Sum Distribution
Paul Cazzola $14,651.71
Dated this 9h day of September,2010 Approved by:
Hunt Davis,Acting Chairperson
As Chair of the Board of Trustees Village Pension Fund for
General Employees in the Village of Miami Shores,Florida