05-03-2017 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