05-07-1997
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Edgewater Firefighters' Pension Fund
Regular Meeting
Wednesday, May 7, 1997
6:30 p.m.
Call to Order: The Regular Meeting of the Firefighters Pension Board was called to
order on May 7, 1997 by Secretary Richards at 6:30 p.m. in the Fire Administration Office.
Members present were: Bill Vola, Fred Munoz, Jill Landreville and Secretary Patricia
Richards. Also present were Mr. Steve Burkhalter from Smith Barney, Dave Russo and
Beth Lang from ICC Capital Marketing, and Lisa R. Miller, Recording Secretary.
Minutes: The Minutes from the February 12, 1996 Regular Meeting were submitted for
approval. Mr. Vola moved to approve the minutes as submitted. Mr. Munoz seconded.
Motion CARRIED 4 to O.
Investment Report:
There was discussion regarding the changes in the Investment Policy and Objectives. It
was noted the Ordinance 97-0-4 was worded incorrectly and needed to be changed to
reflect the intent of the Board. The changes in the Investment Policy and Objectives were to
change the investment ratio to 70/30 and to delete restriction of 5% in anyone company at
cost. Mr. Vola moved to accept the Investment Policy as written. Mr. Munoz seconded.
Motion CARRIED 4 to O. The Investment Policy and Objectives were signed and given to
the representatives from ICC Capital Management.
Mr. Burkhalter stated they would not have the regular Quarterly Report as Mr. Mulfinger
was unable to be present. He added Dave Russo and Beth Lang were here from Capital
Marketing Associates and they were going to go over some of the questions that had been
raised prior to this meeting. Mr. Burkhalter asked them to bring the Board up to date on
some changes that had taken place at Capital Marketing Associates over the last year and
why the fund was performing below the benchmarks that Smith Barney compares their
managers to. Ms. Lang presented a quarterly investment report to the Board. There was
discussion regarding the asset allocation and investments. Mr. Russo stated there were
three gentlemen that are responsible for investing for the fund: Dick Rundell (Fixed income
manager), Bart McMurry (Value Portfolio Manager), and Andy Ritchey (Growth Stock
Portfolio). Mr. Burkhalter requested a profile on the managers. Mr. Burkhalter stated the
value portfolio as of 5/5/97 was $279,468 and the growth portfolio $66,734 and added
they were both showing some strength. There was discussion regarding the fund's past
performance. Mr. Burkhalter asked them to provide him with Manager Profiles and the
upmarket and downmarket percentages so that he can present it to the Board at the next
meeting. There was discussion regarding the word changes of Ordinance 97-0-4. It was
noted the intent of the Board was correct in the bottom part of the ordinance and they felt it
was correct to start investing with the 70/30 allocation and get the wording of the ordinance
changed as soon as possible. It was noted the draft of any ordinances concerning the Board
should be viewed by the Board before it will be presented to Council in the future. There
was discussion regarding the frequency in which ICC Capital Marketing would come to
address the Board and the consensus was they should come every six months. The Board
thanked Mr. Russo and Ms. Lang for their presentation and they left at this time.
Mr. Burkhalter stated the start up costs have been done before and it would be a cost factor
again because some things would be changed around to suit the change in investment ratio.
He said he would get the profiles and the investment percentages from ICC Capital
Management for the next meeting and that should make the Board more comfortable
regarding the changes in investment managers.
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Firefighter Pension Fund
Regular Meeting 05/07/97
Page 2
There was discussion regarding the performance of the investment managers and what they
should look forward to in the future. There was discussion regarding the State monies and
a phone call from Patricia Shoemaker in which she stated the funds would not be dispersed
until the letter from Charles Slavin was taken care of. It was noted the City Attorney had
dropped off the response she had drafted right before the meeting.
Old Business:
The Board was informed the Annual Report had been accepted by the State.
There was discussion regarding the applications for consideration of the fifth member to the
Board. Mr. Vola moved to accept Gary Butt as the 5th board member. Motion CARRIED 4
toO.
New Business:
The bill from ICC Capital Management was presented for the Board's consideration. Mr.
Vola moved to pay ICC Capital Management's bills in the amounts of $70.76 and $345.55.
Ms. Landreville seconded. Motion CARRIED 4 to O.
There being no more business to come before the Board at this time, Mr. Munoz moved to
adjourn. Ms. Landreville seconded. Meeting adjourned at 7:55 p.m.
Minutes respectfully submitted.
Lisa R. Miller
Recording Secretary.
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