08-13-1998 Regular Meeting•
MIAMI SHORES VILLAGE
PENSION BOARD
AUGUST 13, 1998
The regular meeting of the Miami Shores Village Pension Board was held on Thursday, August 13,
1998 in the Chamber of the Village Hall. The meeting was called to order at 8:13 A.M. with the
following members present:
Present: Mary Ross Agosta, Mayor
Joseph Charles
Officer Timothy Dearden
Ellen Friberg
Richard Trumble
Tom Benton, Interim Village Manager
Absent: Louis S. Imburgia
Patricia Varney, Plan Administrator
la. INVESTMENT REPORT FROM MR. BILL TARRY, STI CAPITAL
MANAGEMENT
Mr. Tarry reported that the total return for the quarter was 1.6%. The quarterly return on the fixed
income fund just beat the Lehman Gov't Corp of 2.6% with a return of 2.7%. The equity fund return
of 1.1% was under the S&P 500 return of 3.3%. Mr. Tarry spoke of various factors affecting today's
market.
ib. INVESTMENT REPORT FROM MR. CRAIG HAMILTON, MERRILL LYNCH
Mr. Hamilton reported that the total fund return of 1.6% was under the target index of 3.0% for the
quarter. This was due to the under performance in the equity portfolio relative to the S&P 500.
However, the bond portfolio exceeded the benchmark index. For this period, Nfianii Shores Village
ranked 46th compared to other Florida Municipal Clients.
2. DISCUSSION AND POSSIBLE ACTION REGARDING FOREIGN INVESTMENTS
Mr. Hamilton presented the Board with an informational packet containing international investment
firms. Due to recent legislation, Florida Pension plans will be allowed to invest up to 10% of the total
• portfolio in international investments effective October 1, 1998. He indicated that the current trend
has been for U.S. stocks to outperform foreign stocks. Based on the trend, this should soon turn,
thus investing in the foreign market would keep returns steady over time. Mr. Hamilton submitted
several foreign investment managers who met the criteria for the Miami Shores Village Pension Plan.
All the proposed managers have exceeded the European Autrailiasia & Far East (SAFE) index over
time.
Mr. Hamilton recommended an 8-9% investment in the foreign market. Merrill Lynch believes
foreign investment is a good idea to diversify as it would improve performance and reduce risk. Mr.
Tarry asked to speak on behalf of STI Investment and their performance in the foreign market since
1995.
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Pension Board August 13, 1998 Page 2
Mr. Charles suggested a presentation from an international manager be made at the next Board
meeting, possibly from STI. It was the consensus of the Board that there is an interest in foreign
market investment. However, more information is needed with a possible recommendation from the
Plan Administrator, Patricia Varney.
3. REQUEST APPROVAL OF DROP PLAN BENEFITS FOR STANLEY TAYLOR
Officer Dearden moved for approval of Drop Plan benefits for Corporal Taylor. Mr. Trumble
seconded the motion and the vote was unanimous in favor.
4. REQUEST APPROVAL OF PAYMENT TO SUNTRUST
Officer Dearden moved for approval of payment to SunTrust Banks of Florida, N.A. in the amount
of $26,745.93 for quarterly management fees for the period ending June 30, 1998. Mr. Trumble
seconded the motion and the vote was unanimous in favor.
5. REQUEST APPROVAL OF REIMBURSEMENT TO MIAA'II SHORES VILLAGE
Mrs. Friberg moved for approval of reimbursement to Miami Shores Village in the amount of
$3,218.90 for reimbursement made to Barnett Bank for a disbursement and for an impact study by
Gabriel, Roeder, Smith & Company. Mr. Trumble seconded the motion. Officer Dearden inquired
as to the nature of the impact study. Mr. Benton replied the study was done for union negotiations.
Officer Dearden suggested that a complete retirement study be done in the future. The vote was
called and was unanimous in favor.
6. APPROVAL OF THE MAY 14,1998 MINUTES
Officer Dearden moved for approval of the May 14, 1998 minutes as submitted. Mr. Trumble
seconded the motion and the vote was unanimous in favor.
7. ADJOURNMENT
The August 13, 1998 meeting of the Pension Board was adjourned at 9:35 A.M.
Ellen Friberg, Secret
Mao Ross Agosta, hairwoman