MIAMI SHORES VILLAGE - GE-MINUTES 1-29-2019-APPROVED 4-30-20191
MIAMI SHORES VILLAGE
GENERAL EMPLOYEE PENSION BOARD MEETING
The Miami Shores Village General Employee Pension Board and Police Retirement Board
jointly met on Tuesday, January 29, 2019, at the C. Lawton McCall Community Center.
The General Employee Pension Board meeting called to order at 8:42 AM. The following
individuals were present for the meeting:
PRESENT: ABSENT:
Tom Benton, Pro-Tem Chairman Mac Adam Glinn, Chairman
Angie Dorney, Trustee Jim McCoy, Trustee
Averill Dorsett, Trustee
Thomas J. Longman, Trustee
Bob Williamson, Trustee
Also present were Pension Plan Administrators, Doug Falcon and Yolanda Shea FHA-TPA
Benefit Administrators, Inc., Dave West, AndCo Consulting, and Pension Attorney Adam
Levinson, Klausner Kaufman Jensen & Levinson.
Mr. Falcon advised the Board that the Chairman would not be present and if the trustees
agreed Trustee Benton would serve as pro-tem Chairman, trustees agreed.
APPROVAL OF MINUTES
The Pro-Tem Chairman asked if anyone had any questions regarding the minutes of the meeting on
October 30, 2018, there being no questions,
A motion made by Trustee Williamson seconded by Trustee Dorney to approve the October
30, 2018 minutes motion passed unanimously.
PUBLIC COMMENTS:
None
APPROVAL OF PAYMENT WARRANT: 2019-0001- $3,200.00
The Pro-Tem Chairman asked if there were any questions regarding Warrant 2019-0001 for
$3,200.00, there being no further questions,
A motion made by Trustee Dorsett seconded by trustee Longman to approve the payment
of Warrant number 2019-0001 for $3,200.00 motion passed unanimously.
RATIFY PAYMENT WARRANT: 2019-0002 - $11,071.00
The Pro-tem Chairman asked if anyone had any questions regarding Warrant 2019-0002 for
$11,071.00 there being no questions,
A motion made by Trustee Williamson seconded by Trustee Dorney to ratify payment
Warrant 2019-0002 as stated above the motion passed unanimously.
Trustee Williamson asked Mr. Falcon what is the reason that warrants that have already
been paid require ratification; he feels this step is redundant. Mr. Falcon explained that
the reason the warrants are ratified is because those invoices have been paid by the
administrator and gives the trustees an opportunity to look them over and ask any
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questions regarding them. Should the Trustees feel an invoice has been paid incorrectly,
the administrator can research it further? Attorney Levinson pointed out that this process
also serves as a form of keeping transparency.
INVESTMENT
Mr. West reminded the board of AndCo’s mission statement as it relates to their fees,
organization structure, investment strategy etc. He thanked the board for allowing AndCo
the opportunity to serve them in this capacity. He illustrated the results of the S&P Total
Return Index History. He reported to the Board that Salem Trust did a wonderful job with
respect to the process involved in terminating Insight Investment. The transition was not
the smoothest and he thanked Salem for stepping up and making the process very
successful. He discussed the Miami Shores Village Police Officers Pension Fund Investment
Performance Review Period Ending December 31, 2018 and pointed out that the
investment is recovering since the last quarter which was very negative.
A few of the market observations were as follows:
Markets were volatile to end the 2018 calendar year. Both international and domestic equity
markets had considerable losses during the 4th quarter while fixed income returns were
muted but outperformed relative to equities. Within equities, domestic stocks trailed
international markets, reversing the 2018 trend of US market strength.
Similar to US equities, international equity index returns finished the quarter in negative
territory with the MSCI ACWI ex US Index returning -11.5%. International markets faced
headwinds from softening global macroeconomic data, tightening global monetary policy,
uncertainty around Brexit negotiations, turmoil surrounding global trade relation, falling
commodity prices and continued US Dollar (USD( strength.
Fixed income securities outperformed equities through both the 4th quarter and calendar
year 2018 with the broad market Bloomberg Barclays Aggregate Index returning 1.6% and
0.0% respectively.
US equity index returns were strongly negative across the style and capitalization spectrum
during the 4th quarter of 2018. Despite these negative results there was positive data in
GDP, unemployment, wage growth, retail factors were offset by softening data in housing,
consumer confidence and manufacturing, tightening monetary policy, negative guidance for
future corporate earnings and signs of slowing global growth which all contributed to the
heavy selling in equities.
During the quarter, large cap stocks outperformed mid and small cap equities across
growth, value and core indices. The large cap Russell 1000 Index fell 13.8% during the 4th
quarter versus a -20.2% drop for the Russell 2000 Index.
Value indices outperformed growth indices across the market cap spectrum during the 4th
quarter, reversing a year-to-date trend of growth stock outperformance.
Both S& P Dow Jones indices and MSCI made changes to the Global Industry Classification
Standard (GICS) sector configurations of their indices, creating a new GICS sector
classification called Communication Services which replaced the Telecommunications sector
on September 28, 2018.
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Sector performance was broadly negative across large cap sectors for the 4th quarter. All
sectors which the Russell 1000 Index with the exception of the utilities sector posted
negative returns for the period with seven sectors outpacing the return on the index.
Quarterly results for small cap sectors were generally lower relative to their large
capitalization counterparts.
Using S&P 500 sector valuations as a proxy for the market, forward P/E ratios for three of
the eleven GICS sectors were higher than their long-term averages at quarter-end.
Mr. West advised the Board that at this time there are no recommendations.
This concluded the investment report.
ATTORNEY REPORT
Mr. Levinson reported that the Division of Retirement released their annual report for the
state of Florida. The report was reviewed by his firm, a memorandum illustrating some of
the results will be circulating to all its trustees. Some of the results he discussed were
that Statewide which include all municipal plans almost 62% of investments were on
equities, 7% invested in real estate. Investment assumption returns in Florida were
7.5%.
He discussed House Bill 265 which would require all municipal boards whenever there is
an agenda, the documents to be discussed must be included in the agenda package. If
this bill is adopted the administrators will have to make available all the documents to be
discussed at the meeting at least 3 days prior to the meeting and has to be posted on the
city’s or Village website.
This concluded the attorney report.
ADMINISTRATOR REPORT
Mr. Falcon discussed the Signature Authorization forms required by both Salem Trust and
Integrity for the purposes of moving forward when letters of direction are needed for
example investing within funds or moving funds from one account to another, retirement
applications, invoices, etc.
A motion made, seconded and passed unanimously to adjourn the meeting at
9:38 a.m.
The next pension meeting is scheduled for April 30, 2019.
Approved: Board meeting – April 30, 2019