General Employee Pension Board Minutes 10-11-2012CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
GENERAL EMPLOYEES' PENSION BOARD SPECIAL MEETING
MEETING MINUTES
October 11, 2012
1. The City of Atlantic Beach General Employees' Pension Board meeting was called to order at
1:12 P.M. The members in attendance were trustees: Timothy Townsend, Gil Flores & Alan Gleit.
Dennis Roberts stepped in from 2:30 to 2:59 pm. Nelson Van Liere, Pension Plan Administrator; &
Michael O'Shields, Senior Vice President & Institutional Consultant, Morgan Stanley Smith Barney
were also in attendance
2. The Plan administrator requested on behalf of the Actuary, Jim Rizzo to give approval to two
items. Tim Townsend made a motion that was seconded by Alan Gleit and unanimously
approved to:
Authorize the City to utilize the actuarial data to deterinine the impact of various
benefit changes to the plan.
b. Authorize Jim Rizzo to work for the City on those cost estimates at the expense of
the City.
3. The following was presented by Michael O'Shields of Morgan Stanley Smith Barney:
i. The Annual Investment Performance Report for the including the quarter ended
09/30/12 had a 16.65% increase for fiscal year as of September 30, 2012.
ii. The board discussed at length changing the investment objective to absolute return over
relative return. The idea is that it no longer matters what the performance of
benchmarks or our peers is, but instead we are looking for performance measured
against our funding objective of 8 %. This was agreed upon by a motion made by Alan
to amend the investment policy setting investment category ranges lowering the equity
allocation to 15 %, fixed income to 20 % and creating the opportunity to invest in cash
and cash equivalents up to 65 %. The motion was seconded by Townsend and voted to
approve unanimously.
iii. The board also voted to amend the investment objective to state:
To provide an absolute annualized rate of return over the long term which meets or
exceeds the investment return adopted annually by the board of trustees.
To protect the assets of the plan against the potential of large losses by utilizing prudent
asset allocation based on current market conditions.
iv. The Board also voted to rebalance the portfolio per the new policy ranges by
liquidating half of all domestic equities and all of the international holdings into a cash
position. The motion to rebalance was made by Alan Gleit and seconded by Tim
Townsend. The motion was approved unanimously.
4. Adjo rnme — motion to adjou y Alan Gleit, the meeting was Aoumed at 2:59
Timo y ' ' ownsend Alan Gleit
Chair Secretary
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