02-12-1986 Regular MeetingMIAMI SHORES VILLAGE
PENSION BOARD MEETING
The meeting of the Miami¢Shores Village Pension Board was called to
order at 8:05 am on Wednesday, February 12, 1986 by Mayor Karen Kirby with
the following in attendance:
Board Members: Mayor Karen Kirby
Dr. Robert Butler
William Walker
William Heffernan
John Moore
Les Forney
Absent: Chief John Fletcher
Also Present: William F. Fann, Jr. Esq.,
Mr. Henderson of Herget & Co., Inc.
Mr. James Rizzo & Assistant of Kruse,
O'Connor & Ling, Inc.,
Mr. Scott Givens of NCNB,
Mr. James Jackson of NCNB,
Mr. Gerald Bott of Kidder Peabody,
Ms. Karen Cole of Kidder Peabody,
Mr. Bill Eickhoff, of Eickhoff and Pieper
and Ms. Gail Macdonald, Pension Administrator
1. PRESENTATION OF HERGET & COMPANY INC.
Mr. Henderson presented to the Pension Board his firm's credentials as
consulting actuaries.
2. PRESENTATION OF KRUSE, O'CONNOR & LING, INC.
Mr. James Rizzo presented to the Pension Board his firm's credentials as
consulting actuaries. Mr. Rizzo also introduced his assistant, Ms. Glenda
Rawley, and stated that Mr. Steve Palmquist would be backup Actuary.
3. MOTION TO TERMINATE ECS AS CURRENT ACTUARY.
Dr. Butler moved to terminate the current Actuary. Motion was seconded by
Mr. Walker and approved unanimously.
4. MOTION TO ELECT A NEW ACTUARY.
Mr. Walker made a motion to engage the services of Kruse, O'Connor & Ling, Inc.
seconded by Dr. Butler, and the Board unanimously approved.
5. NCNB PRESENTATION.
Mr. Scott Givens, portfolio manager, reviewed the objectives of the plan and
NCNB's outlook for the future. He advised that the Village Pension Plans
total asset allocation at 12/31/85 was as follows: Cash, 17.5%, Real Estate
9.9%, Equities, 29.2%, Fixed Income, 43.4%. Mr. Givens stated that the over-
all outlook for 1986 was good.
Mr. Jackson, reiterated NCNB's commitment to serve the Village of Miami
Shores. There will be, starting February 1986, a seperate statement from
NCNB, a seperate statement for Eickhoff & Pieper, and a combined statement.
Mr. Jackson felt confident that this system would clear up any difficulties.
6. PRESENTATION BY EICKHOFF & PIEPER.
Mr. Eickhoff assured the Board there were no problems during the transition.
The overall market performance is strong. Our portfolio as of 12/31/85 is
principally structured with 29% of managed assets invested in consumer staples,
15% in utilities, 9% in finance equities and 18% in cash. Mr. Eickhoff
assured the Board that they will maintain the quality and value of the
portfol io.
7. PRESENTATION BY KIDDER PEABODY.
Mr. Gerald Bott of Kidder Peabody presented his evaluation of the Plan's
Performance. Mr. Bott advised the Board that for the quarter ending
December 31, 1985, the Plan had earned 8.1% which was in the top 20% of
similar plans. He also reported that for year ending December 1985, the
Plan had yielded a return of 18.4%. The Plan has consistently outperformed
the Board's investment objective of 12% since October of 1984. As of
December 31, 1985, our fund has earned $249,000 more than our investment
objective, and $718,000 more than the CPI.
Mr. Bott praised both managers for their outstanding performances.
8. MOTION TO INCREASE THE ASSET ALLOCATION..
Mr. Forney made a motion to increase the asset allocation and the motion
was seconded by Dr. Butler. The asset allocation was increased as follows:
43% equity, 12% Real Estate, 5% cash, and 40% fixed assets. The Board
unanimously.
9. MOTION TO APPROVE THE MINUTES OF THE NOVEMBER 19, 1985 MEETING.
The motion was made by Mr. Walker and seconded by Mayor Kirby. The motion
carried unanimously.
10. ADJOURNMENT - 10:05 am.
Approved:
Karen Kirby, M