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Home My WebLink About2011-11-14 Police & Fire Pension Board Minutes City of Dania Beach Police and Fire Fighters Retirement System 113 S.W. 1 Street Dania Beach, Florida 33004 Phone: (954) 921-0404 Fax: (954) 921-1403 E-mail: PFPENS@bellsouth.net Page 1 of 4 MINUTES NOVEMBER 14, 2011 REGULAR MEETING I. CALL TO ORDER The meeting was called to order by 6:10 pm MEMBERS PRESENT: MEMBERS ABSENT: Chairman Larry Rogers Vice Chairman Ted Spongross Secretary Vince Marlin Carolyn Jones Todd Neal Lottye Crooms Wardell Lee Roger Handevidt Mayor Pat Flury ALSO PRESENT: Attorney Ken Harrison – Sugarman & Susskind, PA Jon Breth – The Bogdahn Group Dana Investment Advisors – Duane Roberts, Doug Classen, John Hamlin Herndon Capital Management – Kenneth R. Holley, Drake J. Craig Fiduciary Management Inc. - Michael S. Stanley II. APPROVAL OF MINUTES MOTION by Wardell Lee to accept the minutes from the October 19, 2011 trustee meeting as submitted. SECOND by Roger Handevidt PASSED UNANIMOUSLY III. CONSENT AGENDA No items listed on the Consent Agenda November 14, 2011 Page 2 of 4 IV. OLD BUSINESS 4.1 Dana Investment Advisors Interview Jon Breth from The Bogdahn Group introduced Duane Roberts, Doug Classen and John Hamlin to the Board from Dana Investment Advisors for the Large Cap Core Equity Manager portion of the fund which will be around $9 mil. Dana Investment Advisors is located in Brookfield, Wisconsin and is 100% employee owned. They use team portfolio management and have 9 investment professionals. Their investment style is Core/Relative Value and they use the Top-Down research approach. Their typical number of holdings is between 50 and 55; maximum position size is 4%; maximum cash position is 2% and maximum ADR exposure is 10%. Sector constraints are +/- 1% of index wtg. Investment time horizon is 2 to 3 years. This item was tabled until the December 12, 2011 meeting. 4.2 FMI-Fiduciary Management Inc. Large Cap Equity Interview Jon Breth from The Bogdahn Group introduced Michael Stanley to the Board from FMI-Fiduciary Management Inc. for the Large Cap Core Equity Manager portion of the fund which will be around $9 mil. FMI Large Capt Equity is located in Milwaukee, Wisconsin and is 100% employee owned. They use team portfolio management and have 7 investment professionals. Their investment style is value and they use the Bottom-Up approach. Their typical number of holding is between 20 and 30; maximum position size is 8%; maximum cash position is 10%; maximum ADR exposure is 25%. Sector constraints are none-however, max industry wtg. is 16%. Investment time horizon is 2.5 to 5 years. This item was tabled until the December 12, 2011 meeting. 4.3 Herndon Capital Management Large US Core Interview Jon Breth from The Bogdahn Group introduced Kenneth R. Holley and Drake J. Craig to the Board from Herndon Capital Management for the Large Cap Core Equity Manager portion of the fund which will be around $9 mil. Herndon Capital Management is located in Atlanta, Georgia and is 45% employee owned and 55% owned by Atlanta Life Financial Group. They use team management and have 7 investment professionals. Their investment style is Core and they use the Bottom-Up approach. Their typical number of holdings is between 75 and 125; maximum position size is 10% and maximum cash position is 7%. Sector constraints are +/- 10% of index wtg. This item was tabled until the December 12, 2011 meeting. November 14, 2011 Page 3 of 4 V. NEW BUSINESS 5.1 Fire Retiree Health Insurance and Future Reserve Benefit Chairman Rogers opened discussion with the Board in reference to the Chapter 175 funds received by the city and the plan’s administrator. The fund received $252,394.73 in August 2011 and $17,469.85 (surplus monies) in October 2011 totaling $269,864.58 for calendar year 2010. The fund received $256,727.38 in 2010 for calendar year 2009. The October 1, 2011 to September 30, 2012 total annual retiree portion health insurance premium for retired fire fighters and their beneficiaries is $170,391.00. The fund paid $151,869.91 for the retiree portion of health insurance for retired fire fighters and beneficiaries for the period October 1, 2010 to September 30, 2011. The administrator is waiting for the Chapter 175 Future Benefit Reserve Balance from the funds actuary, Steve Palmquist. MOTION by Mayor Pat Flury for the fund to pay the October 1, 2011 to September 30, 2012 retiree’s share of the City of Dania Beach health insurance from the Future Reserve Benefit on behalf of retired Fire Fighters and Joint Survivor Annuitants contingent that there is enough money in the Chapter 175 reserve benefit account. SECOND by Wardell Lee 5.2 The Bogdahn Group – 4th Quarter Earnings Jon Breth reviewed with the Board the plan’s earnings for one quarter July-September 2011 which was a loss of -8.94; July- September 2011 was a bad quarter across all investments not just the plan’s. Jon Breth also reviewed with the Board the plan’s earnings for fiscal year October 1, 2010 to September 30, 2011 which was a positive of .27 net of fees. November 14, 2011 Page 3 of 4 VI. CORRESPONDENCE VII. RETIREMENTS / TERMINATIONS VIII. OPEN DISCUSSION AND INFORMATION 9.1 Attorneys Report Attorney Ken Harrison reviewed with the trustee’s current pension issues with the state legislature and changes in statutes in House Bill 365. Attorney Harrison discussed with the board that the plan has not met its goals in over 1 year and suggested that the board look at a change in policy or otherwise. MOTION by Vince Marlin for the board to revisit the plans policy and index review for January 2012 SECOND by Wardell Lee 9.2 December 19, 2011 Board of Trustees Meeting Discussion took place regarding the next Board of Trustees Meeting to be held on December 19, 2011 at 6:00 pm MOTION by Chairman Rogers to change the December 19, 2011 Board of Trustees Meeting to December 12, 2011 at 6:00 pm in the office. SECOND by Roger Handevidt PASSED UNANIMIOUSLY . ADJOURN MOTION by Roger Handevidt to adjourn meeting SECOND by Vince Marlin Meeting adjourned at 8:15 PM