01-26-1983 Regular MeetingMiami Shores Village
PENSION BOARD MEETING
January 26, 1983
A meeting of the Miami Shores Pension Board was held on
Wednesday, January 26, 1983, 8:00 a.m., at the Village Hall, with the
following Board members in attendance:
Absent:
Mayor Robert J. Lodge
Councilman Herbert Spahn, Jr.
Village Manager Les Forney
Ms. Ann Vigneron
Mr. Joseph Gionfriddo
Mr. William H. Walker, III
Chief John Fletcher
Also present: Mr. Wally Wilson, Wyatt Company
Donald G. Berdine, John Renger, David Yearwood,
representatives of North Carolina National
Bank
Pension Administrator Gail Macdonald
1. MINUTES - November 30, 1982, approved as written by motion made
by Mr. Spahn, seconded by Mr. Forney and carried.
2. WYATT COMPANY BILL FOR ACTUARIAL SERVICES 1982.
A statement in the amount of $16,786.00 for services rendered
by the Wyatt Company during 1982 was reviewed by the Board.
It was noted that additional expense was incurred principally
in the process of securing a new trustee. Upon motion made by
Mr. Spahn and seconded by Mr. Forney, the bill was unanimously
approved for payment.
3. REVIEW OF INVESTMENT STATEMENT.
An investment statement for the quarter ending 12/31/82
prepared by Barnett Bank was reviewed by the Board.
4. DISCUSSION OF INVESTMENT PHILOSOPHY WITH NEW TRUSTEE.
A statement of investment objectives submitted by North Carolina
National Bank (copy attached) was discussed by the Board and
found acceptable with a goal of 50% income to 50% stocks
based on market value. The Board was disinclined to invest
in real estate. Mr. Forney moved that the Board accept the
investment objectives as outlined with a 50/50 split of
income and stocks. The motion was seconded by Mr. Spahn and
passed unanimously.
•
APPROVED:
1/26/83
-2-
TRUST AGREEMENT - Copies of a proposed agreement prepared by
NCNB will be given to members of the Board.
TRANSFER OF ASSETS.
NCNB reported that they have been in contact with the
Barnett Bank and it is expected that the transfer of
the funds will be made this week.
The meeting adjourned at 8:25 a.m.
airman, Pension Board
•
Secretary, Pension Boar
MIAMI SHORES VILLAGE
PENSION PLAN
INVESTMENT OBJECTIVES
1. We interpret the primary objective of the Miami Shores Village
Pension Plan to be the maximization of total investment return
through a combination of income and capital appreciation consistent
with prudent investment practices.
2. The principal of the funds should be preserved (safety of principal)
as well as protected against inflation. Protection of the principal
value in terms of purchasing power is paramount.
3. The design of pension plans allows a long term orientation, however,
a relatively consistent rate of return from year to year is also
important.
4. NCNB will have full discretion to make and implement investment
decisions based upon the investment objectives and guidelines
established between NCNB and the Pension Board for Miami Shores
Village. The wo�portion to be invested in various curitt classes
n'
will depend o" he outlook for the economy, he capital markets, and,
of course, the objectives of the Miami Shores Village Pension Plan.
5. The investment performance of the plan will be reviewed periodically
relative to the performance of other money managers and the rate of
inflation. The stocks will be evaluated against the,S&P 500 Inde
and other money managers. The bonds will be evaluated against the
Salomon's Bond Index as well as other money managers.
6. Given the levels of interest rates today as well as total return
expectations from bonds and common stocks, the Miami Shores Village
Pension Plan should achieve an average annual investment return of at
least 1256 over a 3 to 5 year time period.