Loading...
11-21-1989 Regular Meeting• • MIAMI SHORES VILLAGE PENSION BOARD MEETING NOVEMBER 21, 1989 The meeting of the Village of Miami Shores Pension Board was called to order by Mayor Courtney at 8:15 a.m. The following were In attendance: Board Members: Also Present: Absent: Mayor Henry Courtney Sgt. Jack Ulmer Mr. William Walker Ms. Gall Macdonald Mr. Steven Johnson Mr. David Newman and Ms.Karen Cole of Kidder Peabody Ms.Ann Maseyko and Mr.Scott Givens of NCNB Mr. John Pieper of Eickhoff & Pieper Mr. Wallace Wilson of The Wyatt Company Mr. William Fann, Village Attoreny Ms.Patricia Varney, Plan Administrator Ms. Jean Bryant Mr. Herb Spahn 1. Quarterly Investment Review - Mr. Mort Millhauser, Eagle Asset Management Mr. Millhauser reported on each of the Investments that Eagle Is participating In for the Pension Plan. The overall year to date performance of the portfolio Is doing well and Eagle anticipates a steady growth. 2. Quarterly Investment Review - Mr. Scott Givens NCNB Mr. Givens reported that the overall Fund performance Is stable. 3. Quarterly Investment Review - Mr. John Pieper of Eickhoff & Pieper Mr. Pieper reported that the over all performance of the portfolio was good and that diversification will enhance the performance. 4. Quarterly Investment Review - Mr. David Newman of Kidder Peabody/Merryl Lynch Mr. Newman reported that the overall portfolio Is well structured with consistant returns. He also reported that Eagle Asset Management's portfolio should perform better In the future and Is well positioned. • • Mayor Courtney requested that Eagle Asset Management and Eickhoff & Pieper supply a purchase date of Investments on all future reports submitted to the Board. 5. Discussion of the Master Investment Policy Sgt. Ulmer made a motion to approve the Master Investment Policy with the following amendments, Ms. Macdonald seconded the motion and the motion passed unanimously. Changes as follows: 1. Item II - Investment Objectives: paragraph E. Asset Allocation, second line the word "the" should be entered preceding the word "Plan's". 2. Item III - Restricted Investments: Number 9 should be eli- minated. Number 6, the apostrophe should be removed after the word "than". 3. In the Appendix - Asset Allocation - Investment obJective should be a seperate title and should read: Investment Ob- Jective = 10% (compounded annual return). Mr. Newman will revise the Master Investment Policy as to the above amendments. 6. Report on declared benefits by Clifford Edmondson. Mrs. Varney reported that Mr. Edmondson chose the 50% Joint Contingency with his daughter as beneficiary. 7. Sgt. Ulmer made a motion to pay all outstanding Invoices for the following: NCNB Eickhoff & Pieper, Inc. Eagle Asset Management The motion was seconded by Mr. Johnson and the motion passed unanimously. 9. Sgt. Ulmer made a motion to approve the minutes of the August 15, 1989 Pension Board meeting. Mr. Johnson seconded the motion and the motion passed unanimously 9. There was no Old Business 10. There was no New Business 11. Mr. Walker made a motion to adjourn the meeting at 10:00 a.m. and the motion was seconded byJs. Macdonald. Gall Madonaid, Secretary Pte; Mayof Henry Courtney Miami Shores Village Pension Plan Master Investment Policy I. Policy Statement: It is the policy of Miami Shores Village to provide through the retirement plan, retirement benefits to participants and their beneficiaries in accordance with the terms of the Plan. The Plan and the benefits thereunder are funded by contributions from Miami Shores, and by income and gains as may be realized from the investment of said Plan funds. It is the responsibility of the Investment Committee of the Profit Sharing and Retirement Plans to monitor the Investment Managers on a quarterly basis through an independent consultant. This responsibility includes the following: 1. To determine the investment objectives of the Plan's funds. 2. To select Investment Managers for the Plan's funds. 3. To monitor investment performance of each selected Investment Manager, and measure this performance against the stated objectives and risk levels of the Plans' funds. II. Investment Objectives: A. All transactions undertaken on behalf of the Plan will be solely in the interest of the Plan participants and their beneficiaries. Transactions will be exercised with care, prudence and diligence under the circumstances then prevailing, such that a prudent man acting in a like capacity and familiar with such matters, would use. B. The Investment Managers will be bound by generally accepted fiduciary standards, including the 1974 Employee Retirement Income Security Act (ERISA), as amended, applying ERISA and the Prudent Man Rule as primary guidelines provided herein. C. Selection of investments should be determined with the objective of preservation of principal and liquidity in occordance with the expected cash flow needs of .the Plans. Miami Shores Village Pension Plan Page 2 D. Eligible investments are as follows: 1. Equities - This category shall constitute common stocks and convertible securities. 2. Fixed Income - This category includes U.S. Government obligations, marketable non -convertible preferred and corporate bonds, yankee bonds, insurance contracts (GIC's), and certificates of deposit. 3. Cash Equivalents - This category of investments shall have an investment maturity of less than one year and shall include U.S. Government securities, repurchase agreements, bank certificates of deposit, prime commercial paper and short-term investmene funds. 4. Alternative Investments - This category of investment covers non -leveraged real estate and mortgages qualified under ERISA. E. Asset Allocation: The Investment Committee shall determine the percentage of eligible investment categories of Plan's total fund assets from time to time. Thb Committee will review the asset allocation in the investment categories at each periodic meeting with the plan advisors and initiate action as deemed necessary based on the then current and forecast market conditions. The Committee will monitor the asset allocation on a periodic basis and take appropriate action to ensure that the asset allocation remains within the parameters in effect for the period or appropriately adjust the parameters as deemed necessary. III. Restricted Investments: Restrictions on the investment of Plan assets are as follows: The Investment Manager (s) shall not, without written approval of the Investment Committee: 1. Make short sales; 2. Enter into margin purchases or other forms of stock borrowing; 3. Invest more than 5% of the Plan assets in the securities of one issuer, except for U.S. Government obligations; or, more than 15% of Plan assets in any single industry; Miami Shores Village Pension Plan Page 3 4. Buy privately placed or other non -marketable securities; 5. Buy lettered, legend or other restricted securities; 6. Invest in convertible securities with less than a BAA rating by either Moody's or Standard & Poor's Corporation; 7. Invest in corporate debt rated less than' Single A by either Moody's or Standard & Poor's Corporation. No foreign debt will be purchased without written permission of the Investment Committee; 8. Invest in bank C.D.'s and repurchase agreements other than in banks with capitalization exceeding $500 million and with a S & P debt rating of A or better; and 9. Invest in assets resulting in unrealized business taxable income. IV. Performance Evaluation: The Investment Committee shall establish standards by which to measure the performance of each Investment Manager. A. The overall performance of the Investment Managers will be evaluated based on the area of investment and the risk and asset allocation of the investment advisor. Performance of each asset class will be evaluated on the basis of: 1. Its time -weighted rate -of -return relative to the following indices over a complete market cycle (3-5 years). a) Equities - Standard & Poor's 500 Index b) Specialty Index where appropriate, i.e., Real Estate c) Fixed Income - Shearson Lehman Gov't/Corp Index d) Cash Equivalents - 90 Day T -Bills • Miami Shores Village Pension Plan Page 4 2. Peer Group Performance - The Investment Committee has retained Kidder Peabody & Co., Incorporated Consulting Division as an independent third party to review each Investment Manager's performance based on the respective investment objectives versus the risk/return as compared to similar portfolios structured as follows: Equities: Includes common stock, convertible preferred stock and convertible debentures. Maximum Exposure: 45% measured against the S & P 500 index. Fixed Income: Corporate debt, straight preferreds, governments longer than one year in maturity, non -leveraged real estate, and options on governments. Maximum Exposure: 50% measured against the S/L Gov't -Corp. Index. Cash Equivalents: U.S. Governments, money market funds, agencies and C.D.'s with maturities of one year or less. Exposure: 5% measured against 90 Day T -Bills. index Fund Composite: 45% Equities; 50% Fixed Income; 5% Cash - 10% Investment Objective Peer group performance will be reviewed with Kidder, Peabody & Co., Incorporated at least quarterly or more frequently as conditions require. V. Communications: The Investment Committee shall be provided with monthly statements which shall detail the specific assets of the Plans, including cost and current market values. Additionally, the reports shall include -all income and/or principal cash transactions. Each Investment Manager shall meet at least annually with the Investment Committee to review its performance and to discuss and/or revise the investment objectives. However, meetings may be held more frequently if requested by the Investment Committee. Miami Shores Village Pension Plan Page 5 The Investment Committee shall communicate to each Investment Manager and the Plants consultant as to Plan objectives and performance evaluation as stated in this policy. The Investment Committee and its consultant will review periodically, but in no event less frequently than annually, the investment objectives and restrictions with each Investment Manager of the Plan to determine if any changes are necessary, based on the economic climate at that time. This Investment Policy has been reviewed by the Investment Committee and approved on: 1989. Approved By: ; Acknowledged By: ; •