08-16-1990 Regular MeetingMIAMI SHORES VILLAGE
PENSION BOARD MEETING AUGUST 16, 1990
The meeting of the Village of Miami Shores Pension Board was
called to order by Mayor Courtney at 8:04 a.m. The following.
were In attendance:
Board Members:
Also Present:
Absent:
Mr. William Walker
Mr. Steven Johnson
Vice Mayor Herb Spahn
Ms. Jeanne Bryant
Mayor Henry Courtney
Mr. William Fann, Village
Attorney, (Arrived 9:40 a.m.)
Ms.Patricia Varney, Plan
Administrator
Mr. William Eickhoff,
Eickhoff & Pieper
Mr. Scott Givens, Ms. Anne
Miseyko, Mr. Rob Holmes NCNB
Mr. Gerald Bott, Mr. David
Newman, Merril Lynch
Mr. Wally Wilson, Wyatt Co.
Gail Macdonald, Village Mgr.
Sgt. Jack Ulmer
1. Quarterly Investment Review
Mr. Eickhoff Indicated that the situation In the mid -
east has effected slow economic growth In the United States
which affect the performance of the market. Eickhoff and
Pleper took this opportunity of a down market to purchase
high quality stocks to place itself In a position for profit.
As of June 20 the equity allocation was 87%.
Mr. Scott Givens of NCNB reported that the returns of fixed
Income for the quarter were in the upper quartile. NCNB Is
investing In a more conservative and less risky portfolio
with a 4.4 years average maturity.
Mr. Rob Holmes reported that the Real Estate portfolio was
entering a down cycle and that future Investments will be
made more In leasing markets and land sales. Mr. Holmes
Informed the Board that NCNB was freezing the Real Estate
fund from further contributions and/or withdrawals due to the
down cycle of the market. (See attached letter).
Mr. Bott reported that the overall portfolio performed well
despite the slow growth In the market.
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Mr. Newman reported that Eagle Asset showed a 9.7% net loss
since the Inception of April 1989. Eickhoff & Pieper's re-
turn for the quarter was 5.8% vs. 6.2% at market. The
Eickhoff & Pieper portfolio shows a compound annalized gain
of 13.3% since inception. NCNB fixed Income for the quarter
rate of return Is 3.5%. It continues to do well with a net
compound annualized gain of 9.6%. NCNB real estate fund had a
net compound annualized gain of 9.8%.
Mr. Bott advised the Board that Eagle Asset performance
should be carefully monitored and that a representative
should be present at the next Board meeting to answer any
questions regarding the Investment procedures.
Mr. Bott advised the Board that he will draft a letter to
Eagle Asset Management Indicating the concerns of the Board
regarding the performance of the portfolio and raising
certain specified questions regarding the Investment
procedures.
2. Request for payment of invoice *04556 In the amount of
$5,617.45 to Eickhoff & Pieper. Mr. Spahn made a motion for
approval of the invoice and the motion was seconded by Mr.
Walker and passed unanimously.
3. Request for payment of NCNB invoice In the amount of
$2,011.77. Mr. Walker made a motion to approve payment of
said Invoice, Mr. Spahn seconded the motion and passed un-
animously.
Mr. Walker made a motion to pay NCNB invoices In the amounts
of $7,270.88, $498, $385, $20 and $1,136.45. Mr. Spahn
seconded the motion and passed unanimously.
4. Mr. Walker made a motion to pay Eagle Asset Management In-
voice In the amount of $2,552.28. Mr. Spahn seconded the
motion and passed unanimously.
5. Mr. Spahn made a motion to approve the minutes of the
June 19, 1990 meeting. The motion was seconded by Mr.
Johnson and passed unanimously.
A motion was made at 9:45 a.m. for adJournment.
NCNB National Bank
Charlotte. NC 28255
Tetophone 7041374-5000
NCNB
a
August 7, 1990
Dear NCNB Real Estate Fund Investors
Due to market conditions and investor uncertainty, the NCNB Real
Estate Fund has recently experienced an increase in requests for
withdrawala. On the June 30, 1990 valuation date, the Fund
experienced a net outflow of participant investment of approxi
mately $13,000,000. The timely requested withdrawals for
september 26, 1990 approximate $26,000,000. while the Fund has
sufficient cash to pay the requested withdrawals and to meet its
contractual obligations on September 28, 1990, WS expect that
this negative trend will continue for the near future and if
allowed to continue will endanger the operation of the Fund.
Despite these conditions, income from. the Fund's investments is
good •and is improving. The Fund's properties are experiencing
increased occupancy rates, and the markets in which we invest
generally are continuing to absorb excess capacity over time.
In order -to protect the long term value of your real estate
investments in a difficult environment, the Trust committee which
has oversight responsibility for the NCNB Real Estate Fund,
pursuant to its authority set forth in the Fund's Declaration of
Trust, has determined that effective immediately no admissions to
or withdrawals from the Fund will be permitted until the Fund has
stabilized. This is necessary in order to maintain a sufficient
cash position for the continued operation of the Fund.
NCNB's real estate investment professionals will continue to
actively manage Fund assets and to assess market opportunitisss to
increase income and the Fund's case position. Your NCNB account
officer will contact you shortly to answer any questions you may
have. We will keep you informed of our actions and intentions
with res. ct to the Fund.
Si
Yd =.yce
Senior vice president
Real Estate Investment Services
• 4111
An NCNB Corporation Company