General Employee Pension Board Minutes 10-10-2013 CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
GENERAL EMPLOYEES' PENSION BOARD MEETING
MEETING MINUTES
October 10,2013
1. The City of Atlantic Beach General Employees' Pension Board meeting was called to order at
6:30 P.M. The members in attendance were trustees: Timothy Townsend, Gil Flores,Alan Gleit,
Dennis Roberts, and Michael Diaz. Nelson Van Liere,Pension Plan Administrator and Investment
Advisor Michael O'Shields were also in attendance.
2. Approval of the minutes from the General Employee Retirement System September 12,2013
meeting. Motion to approve was made by Timothy Townsend and seconded by Gil Flores. The vote
was unanimous to approve.
3. Michael O'Shields led the discussion on investment performance including year to date
information and proposed a new strategy. End of the fiscal year performance resulted in a
$711,427 gain with a current ending portfolio value of$13,727,147 which represents a 5.5%net
return for the year ended 9/30/13 and an annualized 10.8%net return for the prior two years.
Discussion then moved to strategy and new proposed allocation that focused on the following points:
a. "Active managers" in the U.S. equity small to mid-cap space to play second stage
of economic recovery;
b. European equities as"value play"on the economic recovery; and
c. Japanese equities offer an emerging growth story after 20+years of
underperformance and focus on MSCI AC World index.
Alan Gleit made motion to adopt the following allocation(Format: Asset Class—Asset Subclass—
Manager-%of Total);motion was seconded by Dennis Roberts and unanimously approved.
a. US Equities—Large Cap Growth—Columbia—8%
b. US Equities—Large Cap Value—Cambiar—8%
c. US Equities—Mid Cap Growth—Wells Fargo— 10%
d. US Equities—Mid Cap Value—TS&W— 10%
e. US Equities—Small Cap Growth—Riverbridge—9%
f. US Equities—Small Cap Value—GW Capital—9%
g. International Equities—European Equity—Lazard—3%
h. International Equities—MSCI AC World—Newton—3%
i. Fixed Income —Corporate Bond Only—Sage—32%
j. Fixed Income —Total Return Bond—PIMCO—8%
4. Adjournment—Dennis Roberts made a motion to adjou 7:35 PM. /
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Timothy ?owns•nd Alat Gleit
Chai Secretary