02-06-1992 Regular MeetingJF
MIAMI SHORES ViLLAGE
PENSION BOARD'MEETiNG FEBRUARY 6, 1992
The meeting of the Village of Miami Shores Pension Board was
called to order by Mayor Steven Johnson at 8:10 a.m. The
following were In attendance:
,Board Members:
Also Present:
Absent:
Steven Johnson
Gall Macdonald(arrived 8:15am)
Jack Ulmer
Jean Bryant
Joseph Charles
Patricia Varney,
Pian Administrator
Mike Callaway and David Newman
of Merrill Lynch
William Fann, Village Attorney
Henry Courtney
Walter Latimer
1. Presentation by potential Investment managers.
Presentations were made by representatives from Invesco, Sun Bank and
Barnett Bank regarding their firm's Investment strategy, philosophy, and
policy. Each investment manager also presented statistics of their past
performance and a proposal of management fees.
2. Discussion and approval of the Investment Policy.
Mr. Fann explained that ttie Pension Plan called for a corporate
trustee and Mr. Callaway proposed the possibility of changing it to a
custodial agreement. Mr. Fenn, after further research, stated that a
custodial agreement would suffice.
Mr. Callaway stated that Barneit Bank would assume full responsibility
for the trusteeship of the entire portfolio for an additional 2 basis
points. However, Barnett wants indemnification from the Real Estate
portion of the fund. Sun Bank offered the same proposition but their
charge would be approximately 20 basis points and Invesco could not
offer such a service since they are not a bank.
After further discussion, Ms. Macdonald suggested to postpone the em-
ployment of balanced fund managers until the Council passed the first
reading of the proposed ordinance on February 18, 1992.
Sgt. Ulmer made a motion to send the proposed ordinance to the Council
to be approved at the February 18, 1992 meeting. The motion was
seconded by Mr. Charles, which passed unanimously. (Copy of the proposed
ordinance attached).
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Sgt. Ulmer made a motion to accept the Investment Policy with the
revisions by Mr. Callaway regarding prohibiting of foreign Investments.
Mr. Charles seconded the motion, which passed unanimously. (Copy
attached).
3. Ms. Macdonald made a motion to approve the minutes of the January 13,
1992 Pension Board meeting, Mr. Charles seconded the motion, which
passed unanimously.
4. Mr. Charles made a motion to dJourn at 10:29 a.m.
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Gall Macdonald, Secretary
Mayor Steven Johnson
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MIAMI SHORES VILLAGE
EMPLOYEES' RETIREMENT PLAN
BTATEmENT OPDENDINVERT) POLICY
A portion of the Plan's assets are currently invested in the
NCNB Real Estate Fund. These assets are to be managed in
accordance with the terms and conditions of the Plan's
agreement with NCNB National Bank of Florida.
It is expected that NCNB National Bank of Florida shall
continue to provide quarterly reports outliningthe
investment results and any changes or anticipaedd changes in
the structure or organization of the NCNB Real Estate Fund.
Upon reasonable notice, NCNB National Bank of Florida shall
provide any relevant information concerning the Fund that may
be requested by the Board of Trustees.
The Board of Trustees will continue to review the performance
of the Fund on a quarterly basis.
Any cash payments or distributions to the Miami Shores
Village Employees' Retirement Plan resulting from the s
liquidation of NCNB Rea]. Estate Fund assets shall be returned ord
to the Plan. There shall be no reinvestment of cash payments
or distributions from Fund without the written approval
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the Board of Trustees. pproval of
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Adopted 2-6-92
MIAMI SHORES VILLAGE
EMPLOYEES' RETIREMENT PLAN
STATEMENT OF INVESTMENT POLICY
GOALS AND GUIDELINES
The guidelines and objectives provided below are designed to
complement those contained in Chapters 175 & 185 of the
Florida Statutes and any applicable local ordinances. The
purpose of this document is to:
1) provide the Investment Manager(s) a more accurate
understanding of the Board of Trustees' investment
objectives, and
2) indicate the criteria by which the Investment
Manager's performance will be evaluated.
The primary objective of the Miami Shores Village Employees'
Retirement Plan is the protection and preservation of plan
assets. The secondaryobjective is long term growth. As a
result, the Investment Manager(s) shall geek the highest
possible return while maintaining a prudent regard for legal
considerations, fiduciary responsibility, safety of capital
and minimum volatility of returns.
To accomplish these objectives, the Board of Trustees has
elected to employ the services of one or more Investment
Managers. The Investment Manager(s) retained will be
expected to employ a balanced investment strategy (a
.combination of stocks, bonds and cash equivalents).
These guidelines, objectives and restrictions shall apply to
each Investment Manager retained by the Board of Trustees to
manage a balanced portfolio (stocks, bonds and cash
equivalents). The attached Addendum to this Statement of
t Investment Policy provides guidelines governing the Plan's
investment in the NCNB Real Estate Fund.
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GUIDELINES
permissible Investments:
Within the guidelines contained in this Statement of
Investment Policy, the Investment Manager(s) may invest and
reinvest the assets.of the Plan in:
* Time, savings and money market accounts
* Equities (stocks)
* Fixed income securities (bonds)
The equity portion of each'Investment Manager's portfolio
shall not exceed sat or decline below of their total
Iortfolio value (at cost). It shall be the decision of the
nvestment manager(s) to determine the moat appropriate asset
mix (within these limits) to achieve the Plans objectives.
Equity Portfolio:
They equity portion of each Investment Manager's portfolio
shall consist only of stocks issued by United States
corporations. In addition, investment in any single
corporation's stook shall not exceed 5% (at cost) of the
Investment Manager's portfolio.
Fixes Income Portfolioe'
The fixed income portion of each Investment Manager's
portfolio shall consist only of U.S. Government and U.S.
Government Agency bonds and/or bonds issued by United States
corporations that are rated "A" or better by Moody's or
Standard & Poor's rating services. The value of bonds issued
by any single corporation shall not exceed 10% (at Dost) of
the total bond portfolio.
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OBJECTIVES
Total, portfolio:
The total portfolio goal shall be to achieve returns over any
rolling 3 year period in excess of a Target Index. The
Target Index for the Miami Shores Village Employees'
Retirement Plan is defined as a 50% investment in the
Standard & Poor's 500 Stock Index and a 50% investment in the
Merrill Lynch Government/Corporate Bond Index. A further
goal of the total portfolio shall be to achieve returns over
the longer term (3 to 5 years) that rank in the TOP 33% of a
representative universe of similarly managed portfolios.
Equity, Portfolio:
The equity portion of the portfolio shall achieve a return
over any rolling 3 year period in excess of the return of the
Standard & Poor's 500 Index. In addition, it shall be a a*a1
of the Investment Manager that the equity portfolio returns
in any rolling three year period rank in the Top 33% of a
representative universe of other equity portfolios.
Fixed Income portfolio:
The overall objective df the fixed income portion of the
portfolio is to add stability, consistency, and safety to
the total fund portfolio. As a result, it should be a goal.
of the Investment Manager to produce a positive rate of
return during any 12 month period while meeting or exceeding
the return of the Merrill Lynah Government/Corporate Bond
Index. In addition, it shall be a coal of the Investment
Manager that the fixed income portfolio returns in any
rolling three year period rank in the Top 33% of a
representative universe of other fixed income portfolios.
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REPORTING AND PERFORMANCE MEASUREMENT
The Investment Manager(s) for the Miami Shores Village
Employees' Retirement Plan shall provide quarterly reports
for management purposes. The reports shall include data on
01, held, returns earned and any other information
necessary for clarification of the Investment Manager's
results.
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Upon reasonable notice, the Investment Manager(s) shall
provide any reasonable and relevant information requested by
the Boards of Trustees.
The Investment Manager's performance shall be evaluated on a
quarterly basis in terms of achievingthe
in this statement. In addition, botthe equityaandufixedd
income investments selected by the Investment Manager will be
evaluated for risk.
In the equity portfolio risk evaluation will include
variability and volatility of returns security
diversification, portfolio price earnings ratio, portfolio
dividend yield, average market capitalization and average
debt to capital.
In the fixed income portfolio, consideration will be given to
variabilityof returns, as well as average quality, duration
and maturiy.
POLICY REVIEW
It is .the intention of this Board to review this Statement at
least annually and to amend it to reflect any changes in
philosophy or objectives. However, if at anytime the
Investment Managers) believes that the specific objectives
defined herein cannot be met or that these guidelines
constrict performance, the Trustees should be so notified in
writing.
2/6yqZ-
Date
Investment Manager
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DRAF'P
ORDINANCE NO.
AN ORDINANCE OF MIAMI SHORES VILLAGE, FLORIDA, AMENDING
THE MIAMI SHORES VILLAGE PENSION PLAN; AMENDING SECTION
18-40, MIAMI SHORES VILLAGE CODE TO AUTHORIZE -THE
PENSION BOARD TO INVEST THE ASSETS OF THE PENSION FUND
IN ACCORDANCE WITH GUIDELINES ADOPTED BY THE BOARD.
BE IT ORDAINED BY THE VILLAGE COUNCIL OF MIAMI SHORES,
FLORIDA:
Section 1. A new sub -section (11) of Section 18-40 of
Article III of the Miami Shores Village Code of Ordinances is
hereby created to read:
(11) Invest and re -invest the assets of the pension
fund according to the investment procedures in the Miami Shores
Village Employees Retirement Plan Statement of Investment Policy
Goals and Guidelines as adopted by the Pension Board and which
is herein incorporated by reference.
Section 2. Sub -section (11) of Section 18-40 of Article III
of the 'Miami Shores Village Code of Ordinances is hereby
renumbered as sub -section (12).
Section 3. If any section or portion of this Ordinance is
held invalid by a court of competent jurisdiction, such holding
shall not affect the validity of the remaining portions of this
Ordinance.
Section 4. This Ordinance shall become effective on the
date of adoption.
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- Approved on first reading this _ day of
1992.
Approved and adopted on second reading this day of
1993.
ATTEST:
Village Clerk
Mayor
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