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Home My WebLink About12-16-2020 MinutesTHE CITY OF OCOEE POLICE OFFICERS'/FIREFIGHTERS' RETIREMENT FUND REGULAR MEETING — December 16, 2020 Chairman Brown called the virtual meeting of the City of Ocoee Police Officers'/Firefighters' Retirement Trust Fund to order at 1:04 pm. Trustees Present: Chairman Charles Brown, Bryan Pace, Joe Moy and William Maxwell. Trustee Littlefield was absent. Others present: Fund Consultant Tim Nash of AndCo Consulting, Board Attorney Pedro Herrera of Sugarman and Susskind, Beneficiary Rhonda Titus Nate and of DePrince, Race and Zollo and Fund Administrator Livia Giuliani of Benefits USA, Inc. Call to Order: Roll call and determination of quorum The roll was called and a quorum declared. Approval of Minutes from Regular Meeting dated August 5, 2020 Chairman Brown asked the board if there were any corrections, deletions, or additions to the minutes. Hearing and seeing none Trustee Maxwell moved to approve the minutes and Trustee Pace seconded the motion and the motion passed. Public Comments: Mrs. Rhonda Titus was present to speak on behalf of her deceased husband, Terry Titus. She noted that she and Mr. Titus were married in April of 2018 and that he called Benefits USA to change his beneficiary for his pension. Attorney Herrera spoke on this issue noting that when Mr. Titus retired in 2001, he chose a 100% joint and survivor option with Jackie Titus as his Joint Annuitant, however, Jackie has pre -deceased him. F.S. 175/185, as well as the City's ordinance, provide the authority for retirees to change their respective joint annuitants up to two times after retirement with the benefit being recalculated accordingly. He further noted that if this was Mr. Titus' intent to name Rhonda as his Joint Annuitant, rather than his designated beneficiary back in 2018, then the Board could direct the actuary to recalculate the benefit that would have been payable to Rhonda Titus upon Mr. Titus' passing with a reduction for any higher benefit Mr. Titus may have received inadvertently since the change he thought he was filing in 2018. The Board reviewed the forms filed with the Board, listened to testimony from Mr. Titus' widow as well as fellow trustees with personal knowledge of the matter. It was a consensus that the intent was for Mr. Titus to name Rhonda as a joint annuitant rather than a designated beneficiary. Trustee Pace moved to instruct the actuary to prepare the calculation for Mrs. Rhonda to be included as the joint annuitant and to begin receiving benefits effective October 1, 2020. Trustee Moy seconded the motion and the motion passed. Investments Report: Quarter Ending 09/30/2020 AndCo Consulting Mr. Nash reported that the asset classes remained positive during the 3rd quarter. The Fed continues to hold interest rates to zero. large cap stocks outperformed small cap stocks with the S&P 500 returning 8.9% compared to 4.9% for the Russell 2000 Index. Page 1 of 4 For the 1-year period, large cap stocks outperformed both small and mid -cap stocks with the S&P 500 returning 15.1 % while small and mid -cap stocks returned 0.4% and 4.6%, respectively. Developed and emerging market indices were positive for the 1-year period with the developed market index returning 0.5% and the emerging market index returning 10.5%. Fixed income returns were mixed for the 3rd quarter as interest rates remained stable. For the quarter, the BB US Aggregate Index returned 0.6% while the BB Corporate Investment Grade Index returned 1.5%. For the 1-year period, fixed income returns were solid with the BB US Aggregate Index returning 7.0%, while corporate bonds returned 7.9%. TIPS outperformed nominal bonds by posting a respectable 10.1 % return for the 1-year period. TIPS outperformed bonds by posting 10.1 % return for the 1-year period. Mr. Nash reported on the cash flow noting that at the beginning of the quarter the market value was at $59,041,669, the contributions totaled $1,870,449, the distributions totaled-$720,918, the management fees totaled-$36,907, other expenses totaled-$26,467, the income totaled $259,121, the appreciation totaled $3,019,995 and the market value at September 30t' increased to $ 63,406,942. Mr. Nash reported on the Fund performance that the total fund return for the quarter was 5.48% vs. the fund policy of 5.49%. The domestic equity fund returned 8.13% vs. 9.21%, the value composite returned 4.06% vs. the Russell 1000 of 5.59%. Brandywine returned 5.81% and DePrince returned 2.82% respectively. Large Cap Growth underperformed the index 10.70% vs. 13.22%. Alger returned 13.73% and MarVista returned 9.81 % respectively. Vanguard returned 9.19% slightly under the index of 9.20%. American Funds International equity returned 9.66 vs. the International equity policy of 6.36%. Fixed income returned 0.63% vs. the policy of 0.62%. Garcia Hamilton fixed income return was 0.75% vs. the Templeton Global was down -0.26% vs. the Global policy of 2.94%. The 2 PIMCO funds did not have any returns for the quarter. American Realty was down -0.14% slightly under the NCREIF index of 0.57%. Mr. Nash reported on the Compliance checklist noting that it's mostly yes and that he has no recommendations at this time. Trustee Maxwell asked about the new Investment Policy statement, Mr. Nash stated that he would bring it to the next meeting. DePrince Race and Zollo Mr. Kurt Wood and Mr. Nathan Rusbosin were in attendance. Mr. Rusbosin reported that it's the firm's goal to provide superior performance and service to the institutional marketplace. He noted that they are Independently owned with 18 Investment Professionals and 9 Administrative Staff with an average tenure of 13 years. The total firm assets are $2.9 Billion under management consisting of $1.4 Billion in US large cap, $1.1 Billion in US small cap, $218 million in micro value; $25 million in SMID Value and $219 million in Emerging Markets, Mr. Wood reported on the performance noting that for the quarter the return was 2.33% vs. the Russell 1000 of 5.59% and the S&P of 8.93%; from inception of 5/31/2020 to 9/30/2020 the return was 4.28% vs. the Russell 1000 of 4.89% and S&P of 11.10%. Mr. Wood noted that the quarter to date return was 17.86% outperforming the Russell 1000 Value of 11.96% and the S&P of 8.00% and from inception of from 5/31/2020 through 11/30/2020 the return was 22.91% outperforming both the Russell Value of 17.44% and the S&P of 19.98%. The market value at 5/31/2020 was $4,515,873; the withdrawals were -$8,398; the gain was 958,571; the interest and dividends were $74,589 resulting in an ending market value at 11/30/2020 of $5,540,635.00. NEW BUSINESS: 2021meeting dates The Administrator reported on the dates for 2021 are February 3, May 5, August 4 and November 3 all starting a 1:00 pm. Page 2 of 4 FPPTA Membership Dues: The Administrator reported that the Membership dues for 2021 is $620 and is due December 31". That being said, Trustee Pace moved to approve the 2021 membership dues and Trustee Moy seconded the motion and it passed. Consent Agenda: For Ratification: Warrants #196-200 Benefits USA, Inc. (Flat Monthly Fee for Aug 2020; Invoice dated 8/6/2020) $2,100.00 Brandywine Global (Q2-2020 Mgmt. fee -Inv #22104 dated 7/30/2020) $2,456.58 Fiduciary Trust (Q2-2020 Custodian Fee -Brandywine; Invoice dated 7/16/2020) $304.19 Fiduciary Trust (Q1-2020 Custodian Fee-DRZ Invoice dated 7/16/2020) $306.83 Sugarman & Susskind (Legal Fees; Invoice #151142 dated 8/5/2020) $1,190.00 Total $6,357.60 Benefits USA, Inc. (Flat Monthly Fee for September 2020; Inv dated 9/11/2020) $2,100.00 FPPTA October 26-28, 2020 Virtual Class Registration for 5 Trustees) $1,000.00 Sugarman & Susskind (Legal Fees; Invoice #152316 dated 9/15/2020) $1,445.00 Total $4,545.00 AndCo Consulting (Q3 -2020 Consulting Fee; Invoice #36308 dated 9/25/2020) $6,250.00 Benefits USA, Inc. (Flat Monthly Fee for October 2020) $2,100.00 DRZ (Q3-2020 mgmt. fee; Invoice #202003041 dated 10/8/2020) $5,295.00 Foster & Foster (Services rendered; Invoice #18220 dated 10/13/2020) $11,870.00 Mar Vista (Q3-2020 mgmt. fee; Invoice #7443 dated 10/7/2020) $6,149.47 Sugarman & Susskind (Legal Fees; Invoice #152943 dated 10/13/2020) $595.00 Total $32,259.47 Benefits USA, Inc. (Flat Monthly Fee for November 2020) $2,100.00 Brandywine (Q3-2020 Mgmt. Fee -Invoice #22702 dated 10/27/2020) $5,432.09 Fiduciary Trust (Q3-2020 Custodian Fee-GHA; Invoice dated 10/16/2020) $2,198.50 Fiduciary Trust (Q3-2020 Custodian Fee -Mar Vista Invoice dated 10/16/2020) $683.01 Fiduciary Trust (Q3-2020 Custodian Fee -R&D Invoice dated 10/16/2020) $3,101.13 Fiduciary Trust (Q3-2020 Custodian Fee -Brandywine; Invoice dated 10/16/2020) $603.30 Fiduciary Trust (Q3-2020 Custodian Fee-DRZ; Invoice dated 10/16/2020) $588.29 GHA (Q3-2020 Mgmt Fee -Invoice #32814 dated 10/8/2020) $11,037.99 Sugarman & Susskind (Legal Fees -Invoice #154052 dated 11/10/2020) $1,020.00 Total $26,764.31 Benefits USA, Inc. (Flat Monthly Fee for December 2020) $2,100.00 FPPTA (2021 Annual Membership Dues) $620.00 FPPTA (Re -Certification Fees for 5 Trustees) $155.00 Total $2,875.00 Trustee Moy moved to approve the Consent Agenda and Trustee Pace seconded the motion and the motion passed. Attorney's Report: The Attorney reported that the Governor's Executive Order has expired on November 1 requiring a physical quorum by Trustees for all public meetings. Page 3 of 4 Attorney Herrera also reported on the ethics laws for public officials noting that if Trustees are given gifts of $25 or less they may be accepted and do not need to be reported. If a trustee receives a gift of $100 or more, they cannot accept it and they must return, donate or dispose of it. Anything between $50 and $100 may be accepted, but there would be a reporting requirement on behalf of the gift giver rather than Trustees accepting such. Further, any gift, regardless of the value, if being given with the intention of influencing decisions on the Board should not be accepted. Administrator's Report: Benefits USA had nothing further to report. Comments from Trustees: Chairman Brown noted that that he was trying to check on the CEU's on the FPPTA website but was unable to do so. The Administrator noted that she would research it further and get back to them. Miscellaneous Correspondence: No action required. Next Regular Meeting date: February 3, 2021 at 1:00 pm. Adjournment: The meeting adjourned at 3:10 pm. Contact the City Clerk's Office to listen to an electronic copy of the complete minutes. Page 4 of 4