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Home My WebLink About05-03-2017 Minutes THE CITY OF OCOEE POLICE OFFICERS'/FIREFIGHTERS' RETIREMENT FUND BOARD MEETING—May 3, 2017 Chairman Brown called the meeting of the City of Ocoee Police Officers'/Firefighters' Retirement Trust Fund to order at 1:00 p.m. in the Commission Chambers of City Hall. The roll was called and a quorum declared present. PRESENT: Charles Brown, William Wagner, William Maxwell, Joe Moy and Bryan Pace Others present: Mr. Tim Nash of Bogdahn Consulting, Lee Dehner Board Attorney, Chris Greco of Sawgrass Asset Management, and Pete Prior of Benefits USA. Inc. ABSENT and EXCUSED: CALL TO ORDER— Roll call and determination of quorum Roll call was taken and it was determined that there was a quorum. APPROVAL OF MINUTES Approval of Minutes from Regular Meeting dated February 1, 2017. Trustee Moy moved to approve the minutes as presented. Trustee Maxwell seconded the motion and the motion passed. PUBLIC COMMENTS There were no public comments at this time. QUARTERLY INVESTMENT UPDATE: Period ending 03/31/2017 Sawgrass Asset Management Mr. Greco addressed the board regarding the portfolio noting that they have been with the board since 2009, right after real estate decline. This proved to be a very positive for the fund. The first quarter of 2017 extended the rally which began on election day as the S&P 500 gained 6.1% for a total gain of 13% from election day. Large cap returns were more concentrated as the ten largest contributors in the S&P earned 37% of the index return which more than doubled their rating of 14%. The market celebrated 8 years of annualized returns of 19+% (310% cumulative S&P 500). The portfolio lagged the Russell 1000 Index for the quarter as growth led the market with returns of almost 9%. Mr. Greco noted that the index has been very difficult to outperform. For the quarter the fund earned 7%but lagged the index of 8.9%. For all time periods over the last 5 years they lagged the index with the five year annualized return of 11.9% versus 12.3%. Mr. Greco reviewed the portfolio noting that their performance is based on stocks they select minimizing the volatility. Mr. Greco reported that most of their underperformance came from the Discretionary sector due primarily to the lack of Amazon and weak performance from AutoZone. Trustee Maxwell asked about the weighting of the portfolio in the health care sector. Mr. Greco noted that the portfolio is equally weighted in Healthcare at 16%. AndCo Consulting Page 1 of 4 Tim reported on the total portfolio noting the plan is in line with investment policy. Mr.Nash reported that the Russell 1000 Index had a positive return for the 1st quarter Energy(-6.6%)was the worst performing sector and Telecommunication services was the only other large cap sector with a negative performance for the quarter of-3.4%.Technology was the best performing sector in the large cap index which pushed technology stock prices 12.2%higher through the quarter.Health care also outperformed,returning 8.6% for the quarter. For the 1-year period, financials,technology and materials were the best performing sectors, each returning greater than 20%. Energy was the biggest detractor, returning a-10.6% for the quarter. The returns for healthcare and technology is what drove the positive index performance. Mr.Nash reported on the reconciliation of the plan noting that the market value at the beginning of the quarter was $45,615,167,the contributions were$665,195; the distributions totaled-$954,089,the management fees totaled-$62,348, other expenses totaled-$39,466, income totaled$291,833,the appreciation totaled$1,891,613 resulting in the ending market value at 3/31/17 of$47,407,904 The total fund returned 4.66%the quarter and 9.69%for the 1-year period vs the fund policy of 4.23%and 10.82%respectively. The equity fund returned 6.72% for the quarter and 14.51%for the 1-year period vs. the equity policy of 6.31%and 17.05%-respectively. T_he_domestic_equity returned 6.36%for the quarter and 14.71% for the 1-year period vs. 5.74%and 18.07%respectively. GAMCO returned 6.19% for the quarter and 18.26% for the 1-year period vs. the Russell 3000 of 2.99%and 19.97%respectively. Vanguard Total Stock Market Index returned 5.79%for the quarter in line with the CRSP U.S. Total Market TR Index. For the 1-year period Vanguard's return was 18.08%vs.the CRSP U.S. Total Market TR Index of 18.09%. Sawgrass Growth returned 7.04% for the quarter and 8.69%for the 1-year period vs. the Russell 1000 Growth index of 8.91% and 15.76%respectively. For the International Equity, American Funds Europacific returned 9.37%for the quarter and 13.10%for the 1-year period vs. the MSCI AC World ex USA of 7.98% and 13.70%respectively. The Fixed income fund returned 1.56%for the quarter and 2.52% for the 1-year period vs.the fixed income policy of 0.82%and 0.44%respectively. Garcia Hamilton had a 1.00% return for the quarter and 0.98% for the 1-year period which was in line with the Barclays Aggregate Index. The Templeton Global Fixed Income returned 4.69% for the quarter and 11.64% for the 1-year period vs. the Citigroup World Government Bond Index of 1.55% and-3.65%respectively. American Realty returned 2.27% for the quarter and 6.71% for the 1-year period vs. the NCREIF ODCE of 1.81%and 8.60%. Mr. Nash reported that for fiscal year 10/1/15-9/30/16,the total fund underperformed the policy index by 8.28%vs. 11.23%respectively, however, for the previous three fiscal years from 10/1/12 through 9/30/15 the fund outperformed the index. Mr. Nash reported on the compliance report noting that the fund met the benchmark and ranked in the top 40th percentile for each respective period. The fund did not achieve the 8% assumption rate for the trailing 3-year period but did achieve it for the trailing 5-year period. The domestic equity was not in compliance with the benchmark for the 3 and 5-year period and ranked in the 40th percentile for the 3-year period only. The equity allocation is in compliance with the plan assets. The fixed income fund was in full compliance for each respective period. That being said,Attorney Dehner noted that a motion was in order to accept the Investment report. Trustee Moy moved to accept investment report as presented and Trustee Maxwell seconded the motion. The motion passed. Page 2 of 4 NEW BUSINESS: Foster and Foster Additional Fee Memo Mr. Prior reported that Foster and Foster is charging a$500 fee this year to prepare and submit the report. It was noted that the fee would only be approved once. Trustee Wagner moved to approve the fee on a one-time basis. Trustee Maxwell seconded the motion and the motion passed. Mini Conference for Trustees Mr. Dehner reported that they are conducting a mini conference to make it convenient for those trustees who are unable to attend 2 or 3 day conferences in order to satisfy the requirement for receiving continuing education. This conference would only be 2 to 2 '/2 hours and will meet only the minimum continuing education requirements. Mr. Dehner continues to recommend that the Trustees attend the FPPTA or State School Conferences which are much more comprehensive. UNFINISHED BUSINESS: Proposed IRC Ordinance Mr. Dehner reported that the Pt reading was on 5/2/17 and that an impact statement needed to be done. Mr. Dehner also noted that he would provide a copy of the share plan to us for distribution to the Trustees. CONSENT AGENDA For Approval: Warrant#143 Benefits USA, Inc. (Flat Monthly Fee for May 2017; Invoice#05-2017) $2,100.00 Foster and Foster(Services Rendered; Invoice#10333 dated 4/25/17) $4,514.00-240 FPPTA (Annual Conference Registration for 3 Trustees @ $650 each) $1,950.00 GAMCO (1st Qtr. 17 Mgmt Fee-Invoice#20170331-157-4967-A dated 4/17/17) $17,601.00 Total $26,165.00 For Ratification: Warrants#140-142 Benefits USA, Inc. (Administration Fee for March 2017) $2,100.00 Christiansen &Dehner(Legal Fees-Invoice #30066 dated 1/31/16) $374.73 Foster and Foster(Services Rendered; Invoice#10058 dated 2/23/17) $16,747.00 Total $19,221.73 AndCo Consulting, LLC (Pt Qtr. 17 Consulting Fee-Inv#21446 dated 3/31/17) $6,250.00 Benefits USA, Inc. (Flat Monthly Fee for April 2017; Invoice#04-2017) $2,100.00 Christiansen&Dehner(Legal Fees-Invoice#30213 dated 2/28/17) $1,788.00 Total $10,138.00 Garcia Hamilton &Assoc. (1St Qtr. 17 Mgmt Fee-Invoice#28071 dated 4/11/17) $6,955.25 Sawgrass Asset Management(1st Qtr. 17 Mgmt Fee-Invoice dated 4/6/17) $13,771.51 Total $20,726.76 Page 3 of 4 Pension Payments for Ratification: Amy Fulmer(Monthly Benefit payment effective March 1, 2017) $5,928.61 Amy Fulmer(DROP distribution/Rollover) $123,049.99 Amy Fulmer(DROP distribution/Cash) $175,000.00 Trustee Moy moved to approve the Consent Agenda and Trustee Maxwell seconded the motion. The motion passed. Attorney' Report: H. Lee Dehner, Esq. Mr. Denner had nothing further to report. Trustees Comments: The Chairman had nothing further to report. Next Regular Meeting date: August 2, 2017 at 1:00 pm. Adjournment: The meeting adjourned at pm. Respectfully submitted by, .111,A.°10...... 410. Chairman Charli- Contact the City Clerk's Office to listen to an electronic copy of the complete minutes. Page 4 of 4