General Employee Pension Special Board Minutes 10-16-14 Draft (2) v CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
SPECIAL - GENERAL EMPLOYEES' PENSION BOARD MEETING
MEETING MINUTES
October 16,2014
1. The City of Atlantic Beach General Employees' Pension Board meeting was called to order at
11:05 A.M. The members in attendance were trustees: Tim Townsend, Alan Gleit, Gil Flores,
Timmy Johnson, and Ray Brandstaetter participated by phone. Pension Plan Administrator Nelson
Van Liere, and Investment Advisor Michael O'Shields, also attended.
2. Courtesy of the floor to visitors. No visitors spoke.
3. Michael O'Shields discussed market activity from and investment performance as of 10/16/14
including year to date information.
a. Discussion began with John Wolfel asking for a revision in the Portfolio Review
package provided at every meeting. On the Asset Allocation Detail sections he
would like to remove the heading"City of Atlantic Beach" located above each
account name as it distracts from the name of the manager. Also the screen shot
black graph is too dark and the legend is too small. Michael will change the
background of the graph to white so it is easier to read and he will add a text box
legend that will also be presented better.
b. Michael presented the attached Change in Allocation(attached) and discussed the
activity of the first fifteen days of October 2014 and detailed where the market
stands. Both Boards accepted this restructuring of allocations and decided to
implement a collar investment strategy with specific trigger points for re-allocating
pension assets. Motion to approve was made by Alan Gleit and seconded by Tim
Townsend. The vote to approve was unanimous. The details of the strategy are:
1. Specifically, should the S&P 500 decline to 1,790 (the current potential
downside target), that will trigger a 5.0% investment of total plan assets into
the Large Cap Growth portfolio and a 5% investment of total plan assets into
the Large Cap Value portfolio. Also, the corporate bond portfolio will be
reduced to 5.0% from 15% of total plan assets.
2. The other side of the collar is based on the S&P 500 returning to its 200 day
moving average at 1,905. If that were to occur, that will trigger a 5.0%
investment of total plan assets into the Large Cap Growth portfolio and a 5%
investment of total plan assets into the Large Cap Value portfolio. Also,the
corporate bond portfolio will be reduced to 5.0% from 15% of total plan
assets.
4. Adjournment—Tim Townse d made a motion t' .a journ the ri --9 g at :00 PM.
Tim Townsend Alan Gleit
Chair Secretary
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