12-08-2011 Joint Meeting•
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MIAMI SHORES VILLAGE
POLICE PENSION BOARD MEETING
The Miami Shores Village Police Retirement Pension Board and General Employee Pension Board jointly
met on Thursday, December 8, 2011 at the C. Lawton McCall Community Center. The meeting was
called to order at 12:10 PM. The following individuals were present for the meeting:
POLICE PENSION BOARD
Lt. David McLeod
Officer Cliff Vickers
JC Rodriguez
Absent from the Police Retirement Pension Board meeting was Al Davis and Steve Loffredo.
Also present were Elizabeth Keeley, Plan Administrator, Dave West from the Bogdahn Group, Chris Long
and Greg Woodard from Manning & Napier, and Steve Cypen, special counsel to the Pension Boards.
ELECTION OF ACTING CHAIRPERSON
Mr. Rodriguez moved to appoint Lt. McLeod as the Acting Chairperson. Officer Vickers seconded the
motion and the vote was unanimous in favor of the motion.
APPROVAL OF THE MINUTES
Mr. Rodriguez moved to approve the September 1, and September 19, 2011 minutes as submitted.
Officer Vickers seconded the motion and the vote was unanimous in favor of the motion.
APPROVAL OF PAYMENT WARRANT: 2012-001
Mr. Rodriguez moved to approve payment of warrant #2012-001. Officer Vickers seconded the motion
and the vote was unanimous in favor of the motion.
In the interest of time and to ensure that members are present for action items, Agenda Items were
taken out of order.
APPROVAL OF RECOMMENDATION OF CASH SURPLUS DISTRIBUTION
Mr. Dave West, Bogdahn Group, reviewed the Firm's recommendation to transfer and re -balance the
surplus cash to the policy limits. Mr. West confirmed that the rebalance would transfer $125,000 each
to the Boston Group and the International Group. Mr. Rodriguez moved to approve the transfer per the
recommendations of the Bogdahn Group. Officer Vickers seconded the motion and the vote was
unanimous in favor of the motion.
APPROVAL OF HEARTLAND ADVISORS REQUEST TO USE MIAMI SHORES AS A REFERENCE
As there were no issues raised as to allowing the Village to serve as a reference to Heartland Advisors,
Mr. Rodriguez moved to approve Heartland's request. Officer Vickers seconded the motion and the
vote was unanimous in favor of the motion.
APPROVAL OF HEARTLAND ADVISORS REQUEST TO INCREASE THE PERCENTAGE OF INTERNATIONAL
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STOCKS WITHIN THE PORTFOLIO FROM 10% TO 20%.
Dave West of the Bogdahn Group provided information relating to the request and responded to
questions that were raised regarding Heartland's request to increase the percentage of
international/foreign stocks within the portfolio from 10% to 20%. Mr. West advised that Bogdahn
would recommend an increase to 15% only, rather than 20%, as Heartland is the domestic equity
manager, not the international equity manager and in order to keep a clear delineation of
responsibilities for fund investments. Following a discussion on the possible pros and cons of allowing
the requested increase and confirming The Bogdahn Group's recommendation, Mr. Rodriguez moved to
authorize increasing Heartland's allowable percentage of foreign stocks to 15% per the recommendation
of the Bogdahn Group. Officer Vickers seconded the motion and the vote was unanimous in favor of the
motion.
APPROVAL OF THE MORTALITY RATE CHANGE TO REFLECT THE MOST RECENT RP 2000 MORTALITY
TABLE.
Ms. Keeley noted that the State Division of Retirement has noted that the Village's actuarial calculations
should be tied to the more recent mortality table. In order for the Village to be in compliance with the
State's request, the Actuary needs approval from the Board to begin using the more up-to-date table for
the 2011 Valuation. Mr. Rodriguez moved to have the Actuary utilize the RP 2000 Mortality Table.
Officer Vickers seconded the motion and the vote was unanimous in favor of the motion.
APPROVAL OF A REDUCED RATE OF INVESTMENT RETURN FROM 8% TO 7.5%
Discussion centered around the need to adjust the rate of return percentage to a more realistic level,
historical data, and the implications of lowering the level, whether at one time or incrementally. The
Police Retirement Pension Board deferred the item to a later date.
APPROVAL OF ACTUARIAL DISCLOSURE REQUIREMENT
Per recent changes in the Statutes, the Village is required to include an actuarial disclosure requirement
for the comparison of a funded ratio based on liability calculations in the actuarial valuation report. In
order to comply with the new regulations, Mr. Rodriguez moved approval of the Actuarial Disclosure
Requirement. Officer Vickers seconded the motion and the vote was unanimous in favor of the motion.
INVESTMENT MANAGER REPORT
Mr. Chris Long and Mr. Greg Woodard from Manning & Napier International provided a brief report to
the Board regarding the status of the international and foreign investments held with Manning & Napier
and the foreign markets in general. Mr. Woodard offered information relating to the firm's strategies
and policies concerning foreign investments.
INVESTMENT CONSULTANT REPORT
Mr. Dave West from The Bogdahn Group provided an overview of the last quarter and year-end events
which influenced the market and the rate of returns. Mr. West also provided information regarding the
performance of the various funds. The specific investment performances referenced are attached
hereto and made a part hereof.
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ADJOURNMENT
The Police Retirement Pension Board Meeting was adjourned at 1:45 PM.
/ a C fig /74/4C
Barbara A. Estep, MMC
Village Clerk
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Lt. David McLeod, Acting Chair
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Police Warrant - No. 2012 - 001
For payment from the Village Pension Fund for Police Officer's in the Village of Miami Shores, Florida.
To Chair and Administrator, or such other officers, who from time to time are duly designated and authorized by the Board of
Trustees of said Fund, to sign checks, drafts or orders for the payment of money; You are hereby authorized by the Board of
Trustees of the Miami Shores Village Pension Fund for Police Officer's in Miami Shores Village to pay the amounts listed below
for services rendered to the said Board of Trustees, and to pay the persons named below, hereby certified by the Board of
Trustees as being on the Pension list of said Board by circulation of this warrant, pensions from 09/21/11 to 12/07111 inclusive,
or for the period of time opposite the name of said persons.
Name (Pensions, Benefits, Services Provided or Obligations) Amount
To be paid by Trustee:
Authorize payment to Boston Company
Quarterly management fees for the period 07/01/11— 09/30/11
Authorize payment to Cutwater Asset Management
Quarterly management fees for the period 07/01/11— 09/30/11
Authorize payment to Heartland Advisors
Quarterly management fees for the period 01/01/11— 03/31/11
Quarterly management fees for the period 07/01/11— 09/30/11
Authorize payment to The Bogdahn Group
Quarterly consulting fees for the period 07/01/11— 09/30/11
Authorize payment to Cypen & Cypen
Legal Counsel Services through 09/01/11 Invoice #6009
Authorize payment to Salem Trust Company
Quarterly fee for period 07/01/11— 09/30/11
Authorize payment to Gabriel Roeder Smith & Company
Actuarial Services through 09/30/11 Invoice date 10/06/11
Authorize payment to FPPTA for Annual Membership
Authorize payment to Miami Shores Village
FEDEX invoice paid for shipment to Division of Retirement
Dated this 8th day of December, 2011 Approved by:
$ 2,025.44
$ 2,443.05
$ 3,865.00
$ 3,082.00
$ 5,000.00
$ 500.00
$ 1,813.47
$ 3,427.00
$ 600.00
$ 52.15
As Chair of the Board of Trustees Village Pension Fund for
Police Officer's in the Village of Miami Shores, Florida
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Miami Shores Village Police Officers' Pension Fund
Comparative Performance Trailing Returns
As of September 30, 2011
Quarter
Oct -2010
To
Sep -2011
1' ear
3
Years
5 Since Inception
Years Inception Date
Total Fund (Gross)
Total Fund Policy
Difference
All Public Plans -Total Fund Median
Total Fund (Net)
Total Fund Policy
Difference
Total Domestic Equity
Domestic Equity Policy
Difference
IM U.S. Large Cap Core Equity (SA+CF)
-9.38 (41)
-8.64 (26)
-0.94
-10.18
-9.82
-8.64
-1.18
-15.72
-15.28 (59)
-0.44
-14.94
(65)
-0.03' (
1.02 (36)
-1.05
0.39
-0.65.
1.02
-1.67
2
.97 (71
0.55 (56)
-1.52
0.96
-0
0
(62) 2.28 (9
1.02 (36) 4.17 (40)
-1.05 -1.92
0.39 3.89
-0.65
1.02
-1.67
1.71
4.17
-2.46
2.11 (47)
-1.01
2.03
0.56
2.11
-1.55
0.97 (71) -1.30 (93) -1.60 (81)
0.55 (56) 1.67 (47) -0.88 (62)
-1.52
0.96
-2.97 -0.72
1.51 -0.52
Total Fixed Income 3.21 (53) 6.12 (13), 6.12 (13) 8.27 (75) 6.87 (51)
total 1 fixed Policy82 (24) 5.2i, (<18) 5.26 (48) 7.4-1(,cii 6.11 t 82)
Difference -0.61 0.86 0.86 0.83 0.73
IM U.S. Broad Market Core Fixed Income (SA+CF) 3.29 5.24 5.24 9.00 6.88
2.82 (95,) 07/01/2001
3.40 (84)
-0.58
4.08
.3
3.40
-1.08
0.88 (91)
1.56 (74)
-0.68
2.32
7/01/2001
07/01/2001
6.30 (45) 07/01/2001
5.54 (v4)_
0.76
6.27
Returns for periods greater than one year are annualized. Returns are expressed as percentages.
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THE
BOGDAHN
GROUP,