Police Employee Pension Board Minutes 10-11-2012CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
POLICE EMPLOYEES' PENSION BOARD SPECIAL MEETING
MEETING MINUTES
October 11, 2012
1. The City of Atlantic Beach Police Employees' Pension Board meeting was called to order at 1:12
P.M. The members in attendance were trustees: Harry McNally, John Wolfel & Vic Gualillo.
Brannon Hicks was absent, we have one current vacancy. 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. John Wolfel made a motion that was seconded by Vic Gualillo and unanimously
approved to:
a. Authorize the City to utilize the actuarial data to determine 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:
The Annual Investment Performance Report for the including the quarter ended 09/30/12
had a 13.38% increase for fiscal year as of September 30, 2012.
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 Harry McNally 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 John Wolfel and voted to approve unanimously.
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.
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 Harry McNally and seconded by Vic Gualillo. The motion was
approved unanimously.
4. Adjournment — motion to adjourn by n G eit, the meeting was adjourned at 2:59 PM.
V
Vic Gualillo
Chair
Larry Mc ally
Secretary