11-19-1985 Regular Meeting•
MIAMI SHORES VILLAGE
PENSION BOARD MEETING
The meeting of the Miami Shores Village Pension Board was called to order at
8:10 am on Tuesday, November 19, 1985 by Mayor Karen Kirby with the following in
attendance:
Board Members: Mayor Karen Kirby
Dr. Robert Butler
Chief John Fletcher
William Walker
Les Forney
John Moore
Absent: William Heffernan
Also Present: William F. Fann, Jr., Esq., Mr. Eickhoff of
Eickhoff & Pieper, Inc., Mr. John Pieper of
Eickhoff & Pieper, Inc.
1. APPROVAL OF SEPTEMBER 18, 1985 MINUTES
Upon motion called for by Mayor Kirby, so moved by Mr. Walker, seconded by John
Fletcher, The Minutes of the September 18, 1985 meeting were unanimously approved
as written. Board member William Walker suggested that section number three (3)
of the minutes should be clarified. Specificially, the line which read "Employee
must sign release form that the employee fully understands and waives any future
earnings on these funds." Mr. Walker pointed out that the sentence failed to
clarify "what" the employee understood. It was suggested by Dr. Butler that copies
of the legal instruments which had been prepared by the City attorney be attached
to the minutes in clarification of this point. This suggestion was approved by
consensus of the board.
2. REVIEW OF PERFORMANCE THROUGH SEPTEMBER 30, 1985 - NCNB
• Gerald Bott of Kidder, Peabody, Inc. presented to the board his quarterly review
of the investment performance of NCNB for the period ending September 30, 1985.
Mr. Bott advised the board that the Pension Fund was finally meeting its investment
objective of 12% earnings per annum. For the September quarter, the equity segment
of the portfolio had a beta coefficient of 1.3, the fixed income segment had a beta
coefficient of .49, which resulted in a beta coefficient for the total fund of .99.
The funds' return since inception was 12.1; a risk free return would have been 8.5,
which resulted in a risk premium return of 3.6.
Dr. Butler questioned the statistics being presented for the fixed income portion
of the portfolio. For comparison purposes, he felt it would be more equitable to
seperate the real estate portion of the portfolio from the fixed income portion. The
performance review presented by Kidder, Peabody had treated these two different types
of markets as a consolidated figure for reporting purposes. Mr. Bott agreed that in
the future evaluations the statistics for the two types of markets would be reported
separately.
Mr. Bott also briefly described to the Board the activity which had transpired in
order to effect the transfer of equities from the control of NCNB to the control of
Eickhoff & Pieper.
Upon completing his review, Mr. Bott requested that the board review their investment
objective of 12% and determine whether this was still considered to be an acceptable
figure. It was the consensus of the board that the directed investment objective
should not change.
3. REVIEW OF PERFORMANCE THROUGH SEPTEMBER 30, 1985 - EICKHOFF & PIEPER, INC.
Mr. Eickhoff reviewed for the board the investment philosophy followed by his
company - specifi'cially, the purchase of undervalued stocks with good P/E ratios.
Mr. Eickhoff than distributed to the board his company's initial value
calculation. For purposes of measuring investment performances, Mr. Eickhoff
requested that the figure of $1,375,397 accruing to Eickhoff and Pieper at 9/30/85
be used. (See attached Initial Value Calculation) It was the consensus of the Board
to accept this date and figure.
Roth. Mr. Bott and Mr. Eickhoff alluded to the fact that the two seperate statements
prepared by NCNB for the NCNB portion of the portfolio and the Eickhoff portion
of the portfolio had resulted in the over -statement of the fund of approximately
$560,000. Board member William Walker expressed the consensus of the Board when he
indicated that he found it difficult to consider the portfolio as a whole when
the statements are being prepared as though the assets were retained by two seperate
entities. He requested that in the future statements be prepared which consolidated
all portions of the portfolio into one report. Mr. Bott advised the board that he
would contact NCNB and determine whether this method of reporting would be available
and whether there would be any charge for this.
4. ADJOURNMENT - 9:35 am
Approved:
AA,
Karen Kirby, Mayor
e
•
141ANI SHORES VILLAGE, nyc.
PENSICN FUND
INITIAL VALUE CALCULATION:
I. Total Value of Fund assets August 30, 1985
(Per NCNB Statement)
August 28, 1985 NCNB instructed by letter to transfer 35% of
Fund to separate account for Eickhoff & Pieper, Inc. to
manage.
Total Amount
II. Assets Transferred
September 30, 1985 Market Value of common stock transferred
to separate managed account.
October 3, 1985 Advised of transfer by NCNB of Cash to sep-
arate managed account.
Total approximate value of assets segregated for management.
•
$3,921,802
$1.372,630
$1,033,794
341,603
$1.375,397
III. Total Value of specific stocks held on August 30, 1985 which $1.401,488
would have been transferred with adjustments for sales.
Eickhoff
&Pieper,Inc.
Investment Management