Police Employee Pension Board Minutes 10-10-13CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
POLICE EMPLOYEES' PENSION BOARD MEETING
MEETING MINUTES
October 10, 2013
1. The City of Atlantic Beach Police Employees' Pension Board meeting was called to order at
6:30 P.M. The members in attendance were trustees: Vic Gualillo, David Cameron, John Wolfel,
Bill Tomson, and Tim Saggau, Nelson Van Liere, Pension Plan Administrator and Investment
Advisor Michael O'Shields were also in attendance.
2. Approval of the minutes from the Police Employee Retirement System September 12, 2013
meeting. Motion to approve was made by Bill Tomson and seconded by Vic Gualillo. 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
$364,000 gain with a current ending portfolio value of $7,370,351 which represents a 5.2% net return
for the year ended 9/30/13 and an annualized 9.0% 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.
Vic Gualillo made motion to adopt the following allocation (Format: Asset Class — Asset Subclass —
Manager - % of Total); motion was seconded by David Cameron and majority approved. Bill
Tomson voted against the motion.
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 — 40%
4. Adjournment — Vic Gualillo made a motion to adjourn at 7:35 PM.
6
Vic Gualillo David Cameron
Chair Secretary