General Employee Pension Board Minutes 11-13-14 v CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
GENERAL EMPLOYEES' PENSION BOARD MEETING
MEETING MINUTES
November 13,2014
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: Tim Townsend, Alan Gleit, Gil Flores, and Ray
Brandstaetter. Pension Plan Administrator Nelson Van Liere, Investment Advisor Michael
O'Shields, and Pension Board Attorney Scott Christiansen of Christiansen& Dehner, PA also
attended.
2. Courtesy of the floor to visitors.No visitors
3. Approval of the Minutes for October 9,2014,General Employees' board meeting. Motion to approve
was made by Gil Flores and seconded by Ray Brandstaetter. The vote to approve was unanimous.
4. Approval of the Minutes for October 16,2014, Special General Employees' board meeting. Motion to
approve was made by Tim Townsend and seconded by Ray Brandstaetter. The vote to approve was
unanimous.
5. The Financial Expenditures through September 30,2013 for the General Employees' Pension Plan
were approved: The motion was made by Tim Townsend and seconded by Gil Flores. The vote was
unanimous to approve.
6. Michael O'Shields led the discussion on investment performance as of 11/12/14 including year to
date information.
a. Michael started the meeting with a review of market updates related to the
reallocation of assets stemming from the October 16th Special Pension Board
meeting. This reallocation added $761,133 or 5.2% of net investment returns to the
close of October. Michael recommended keeping things as they are now and re-
address in December.
' b. Discussion related to current equity and bond investment allocation and rate of
return. The ending portfolio value of$15,344,503 represents an annualized return
of 8.8% for the period 9/30/11 to 9/30/14. Conversation also included the email
and information provided by Scott Christiansen (attached). The Board had
questions regarding the City's ranking based on this information. Scott said the
performance of our portfolio was not good compared with other plans. He also
challenged the use of the "rolling 5 year"numbers, said the Trustees should look at
the performance of the fiscal year not the 5 year return, and stated that the last 2
year performance results will lower that"5 year"net return.
c. Alan Gleit discussed further changes to the allocation of cash and made a motion
to reduce cash by 8% or$1,227,000 and move it into equities; specifically
Columbia Management. Ray Brandstaetter seconded the motion and the vote to
approve was unanimous. After further discussion regarding the performance of the
Thompson Siegel & Walmsley account Ray Brandstaetter made a motion to move
the balance $791,234 from this account into Columbia Management. Tim
Townsend seconded the motion and the vote to approve was unanimous.
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7. Scott Christiansen,Pension Board Attorney provided updates:
a. Scott notified the Board they need to submit the plan assets to the Commission
using the formal letter provided in the pension plan documents.
b. Quarterly meeting dates have been provided to the Trustees through email for
the 2015 calendar year and will be included on the December agenda.
c. As a follow up to the last quarterly meeting Nelson Van Liere updated
participants that there has been no progress on the distribution of funds from
Gail Baker's Pension Plan due to lack of activity from her family.
8. New business: John Wolfel from the Police Employees Pension Plan asked Michael O'Shields to
excuse himself so the members of both Boards could discuss thoughts on retaining him as
financial advisor. Michael said he would like to stay to hear the issue. John said he would like the
Board to consider the possibility of doing an RFP to see what the options are. He is not happy
with the performance and strategy and does not like"picking stocks" (timing the market) as the
best method for the integrity of the pension plan. Vic Gualillo pointed out that when you have an
RFP you will end up with sales pitches and maybe the board should look at changing the
approach and give Michael direction to manage the plan in a different way. Nelson reminded the
Board that they adopted the current strategy several years ago and can redirect their efforts. Bill
Tomson stated he would like to be able to move the money around and not stay status quo. It was
agreed this issue will be placed on the next agenda for discussion.
9. Adjournment—Tim Townsend made a motion to adjourn the meeting at 7:35 PM.
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Tim T i , send Alan Gleit
Chair Secretary
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