Loading...
12-12-2022CITY • EDGEWATER GENERAL EMPLOYEES' PENSION BOARD QUARTERLY MEETING MINUTES City • Chambers Monday, December 12, 2022, at 10:30 AM TRUSTEES PRESENT: Bridgette Vaissiere Dilena Talley Tim Sopko Brenda DeWees TRUSTEES ABSENT: Tyna Hilton OTHERS PRESENT: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson (via phone) Frank Wan, Burgess, Chambers & Associates Michelle Rodriguez, Foster & Foster Call to Order— Brenda DeWees called the meeting to order at 10:34 AM. 2. Roll Call — As reflected above. 3. Public Comments — None. 4. Approval of Minutes a. September 19, 2022, Quarterly Meeting Minutes The Board approved the September 19, 2022, quarterly meeting minutes as presented, upon motion by Bridgette, Vaissiere and second by Tim Sopko, motion carried 4-0. 5. New Business a. Member Elected Trustee Seats i, Michelle Rodriguez commented there were no nominations for the two member elected seats Occupied by Brenda DeWees and Tyna Hilton, and they would serve out their three-year terms though 4/11/2025. b. Election of Officers i. Michelle Rodriguez advised the board the current roster of officers consisted of Chair Brenda DeWees, Vice -Chair Bridgette Vaissiere and Secretary Tim Sopko. q4jM110161 ofi t 0 1 Tim Sopko; motion carried 4-0. 6. Old Business — None. Reports a. Burgess, Chambers & Associates, Frank Wan, Investment Consultant i. Quarterly Report as of September 30, 2022 1. Frank Wan reviewed the current market environment and commented it had been sour but he was hoping for a rally before the end of the year. Frank commented 10 -year rates in the fixed income market had fallen substantially and added inflation would begin to diminish and the new normal would be 3 to 4 percent instead of 1 to 2 percent. 2. Frank Wan reviewed the plan's individual investment managers. 1 The market value of the plan as of September 30, 2022, was $11,246,998. The fund's total net returns for the quarter were -3.9%, outperforming the policy benchmark of -4.4%. Trailing total fund gross returns for the 1, 3, and 5 -year periods were -16.9%, 2.7% and 4.1 % respectively. 4, Frank Wan commented they had discussed de -risking the plan in the future because even though the bond market was looking better, they were still long way away from the needed O.5%return. 5. Fran Wan commented the plan needed $38 million to guarantee benefit payments over the next 50 years and the market environment suggested equity funds would provide needed capital for them. G� Frank Wan recommended liquidating 100% of the Allspring large cap growth fund and 50% of the Vidus Ceredex |aqJg cap value fund and use the proceeds to purchase shares of the Fidelity 500 Index fund. Di|eOa Talley asked how the cost of the Fidelity 500 Index fund compared to the others and Frank commented the expense ratio was much less atD.D15%. The Board voted to adopt the investment consultant's recommendation, upon motion by Bridgette Vaissiere and second by Dilena Talley; motion carried 4-0. T Frank Wan commented increases in interest rates had weakened the real aebah* market and added 80Y6 of office spaces were leased but remain 2096 vacant. Frank recommended they get in line toredeem $3OO.DOthis quarter and then reevaluate next quarter. Frank recommended they put the proceeds into bonds for the short term and then rebalance some into equity The Board voted to adopt the investment consultant's recommendation, upon motion by Tim Sopko and second by Bridgette Vaissiere; motion carried 4-0. b. Klausner, Keufman, Jensen, and Levinson, BonniJmnsen. Plan Attorney i Client K8mrnns — IRS Required Minimum Distribution (RK8D). Insulating Corporate Officers, and SEC Proxy Voting Disclosure Rules 1, Bonni Jensen reviewed several memos for the board's education. No action was necessary. c, Foster& Foster, Michelle RodriQuez, Plan Administrator i. FPPTAMemberohip Renewal 1, The board agreed by consensus to not renew their FPPTA annual membership. 2. The board instructed the plan administrator to put an education session on the next meeting agenda, 8 ConsentAqenda a. Ratification of Warrants i Warrant #83 b. New invoices for payment approval i None, c. Fund Activity Report for September 14, 2022, through December 5, 2022 The Board approved the consent agenda as presented, upon motion by Tim Sopko and second by Bridgette Vaissiere; motion carried 4-0. Trustee Reports, Discussion, and Action —None, 10. Adjournment —The meeting adjourned at 11:43 AM. 11Next Meeting — March 13, 2023, at 10:30 AM 2 Respectfully submitted by: Appr ved by: Michelle Rodriguez, Plan Admin" e-renda DeWees, Chair 61/ Date Approved by the Pension Board: