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Home My WebLink About1997-10-21 - Agendas - FinalFAYETTEVI LLE • THE CITY OF FAYETTEVILLE, ARKANSAS TRACI PAUL, CITY CLERK TO: Firemen's Pension Board Members • FROM: Traci Paul, City Clerk/Treasurer "fig DATE: October 21, 1997 SUBJECT: Firemen's Pension Board Meeting The next Firemen's 1997, at 11:00 a.m. find a copy of the from the September 1997. Attachments • 113 WEST MOUNTAIN 72701 501 575.8323 • Pension Board meeting is Thursday, October 30, in room 326 of City Hall. Attached, please agenda for the upcoming meeting, the minutes 25 meeting, and the pension list for November, AGENDA FIREMEN'S PENSION AND RELIEF BOARD October 30, 1997 11:00 a.m. City Hall Room 326 1. Approval of the minutes of September 25, 1997. 2. Approval of Pension List for November, 1997. 3. Investment Report, Merrill Lynch 4. Old Business 5. New Business 1127 12.25 A. Reschedule November & December Pension Board Meetings 6. Adjournment MINUTES OF A MEETING OF THE FIRE PENSION BOARD A meeting of the Fayetteville Firemen's Pension and Relief Board was held on Thursday, September 25, 1997, at 11:00 a.m., in room 326, of the City Administration Building, 113 W. Mountain, Fayetteville, Arkansas. PRESENT: Pete Reagan, Marion Doss, Ron Wood, Darrell Judy, Bill Morris and City Clerk/Treasurer Traci Paul ABSENT: Mayor Fred Hanna CALL TO ORDER Marion Doss called the meeting to order. MINUTES Judy, seconded by Wood, moved to approve the minutes of the August 28, 1997 meeting. The motion passed unanimously. • PENSION LIST Paul reported there were no changes in the pension list. Reagan, seconded by Judy, made a motion to approve the pension list for October, 1997. The motion passed unanimously. OLD BUSINESS State Insurance Tumback Funds Doss explained that the Board has $140,000 in State Insurance Tumback funds to invest. Reagan made a motion to place $140,000 into a fixed income account with Merrill Lynch. Morris seconded the motion. The motion passed unanimously. Judy questioned the difference between the $154,000 that was available and the $140,000 that is now available for investing. Paul stated she would ask Ben Mayes and report to the Board at their next meeting. 1 • • • September 25, 1997 INVESTMENT REPORT Richard Yada, Merril Lynch, distributed the Portfolio Performance Report dated December 31, 1996 through September 23, 1997. Yada explained that with the DROP program and the benefit increases that have been given over the last two years, the fund will probably be right at or barely actuarily sound when the actuary comes out at the end of the year. Yada reviewed the performance of the select ten strategy. Yada stated the last actuary report was good. Yada stated Keystone was bought out by First Union Bank. Our portfolio manager, Andrew Baldassarre, left Keystone. Merrill Lynch has been investigating any changes that have occurred. Yada recommended removing Keystone as an asset manager and reallocating the assets to another manager. Curtis Williams, Merrill Lynch, explained that past performance is an important factor in considering an investment advisor. There have been some dramatic changes with Keystone. The size of the firm has been greatly reduced, our portfolio manager is gone, and a considerable number of the research staff is gone. The people still with Keystone may do a great job going forward, but we have no track record. We determined in the investment policy and guidelines that we were going to intrust our money to those people who could show us a superior long tern track record. The Keystone that exists today is not the Keystone that existed a year ago. Williams explained that the consolidation of financial services will continue. Williams explained that Merrill Lynch is an investment firm that will be the same in the future as they are today Merrill Lynch Asset Management is an independent arm of Merrill Lynch. Williams stated they are a value manager. If this market corrects, value will hold up better than growth. They can also manage our global assets within the single portfolio. We would not have to have a separate portfolio to manage global assets. They will manage our global assets in a value oriented way to the extent that we tell them to do it. Merrill Lynch has the largest global research staff m the industry. Williams stated we can get fixed income management in the same portfolio should we choose to go that route. Williams explained that in the search process for another manager, Merrill Lynch just came out OH top. Williams distributed brochures on Merrill Lynch Asset Management. He stated they have a seventeen year track record. They manage from a value standpoint. Reagan expressed his support for the recommendation to go with Merrill Lynch Asset Management. 2 • • September 25, 1997 Yada reviewed the performance data for Merrill Lynch Asset Management as presented in the brochure. Reagan asked if the recommendation was to drop Keystone and put the $1.5 million in equities with Merrill Lynch Asset Management. Yada stated yes. Judy explained the Board should support the recommendation of Richard Yada and Curtis Williams. Reagan made a motion to move the assets out of Keystone Management and into Merrill Lynch Asset Management. Wood seconded the motion. The motion passed unanimously. It was decided that a representative from Merrill Lynch Asset Management would attend one of the next two meetings of the Fire Pension Board. There being no further business, the meeting adjourned at 11:40 a.m. 3 • FAYETTEVILLE FIRE DEPT PENSION AND RELIEF FUND PORTFOLIO PERFORMANCE 12/31/96 TO 9/30/97 NM CAPITAL MANAGEMENT INCOME ACCOUNT KEYSTONE ASSET MGNT 3 -MONTHS TREASURY BILLS DJIA W/DIV REINVESTED S & P 500 W/DIV REINVEST LONG TERM TREASURY BONDS HIGH GRADE CORP BONDS CPI {AUG} NM CAPITAL {time wtd} INCOME ACCOUNT KEYSTONE ASSET MGNT JANUARY 1996 Dow United Kingdom Japan Hong Kong MAY 1996 Dow United Kingdom Japan Hong Kong SEPT 1996 Dow United Kingdom Japan Hong Kong 12/31/96 $3,987,776 4,518,042 1,201,845 original inv. $75,000 75,000 75,000 75,000 $75,000 75,000 75,000 75,000 $75,000 75,000 75,000 75,000 9/30/97 $4,820,241 4,767,406 1,496,563 0,4oSy2/0 12/31/95 12/31/96 9/30/97 + 5.46 +35.53 +34.94 +27.63 +23.51 + 2.67 +15.68 +15.61 .+ 5.31 +29.49 +22.98 - 1.21 + 1.61 + 3.32 +11.37 + 4.25 +17.91 6/30/97 $ 103,535 79,814 53,796 79,497 $ 95,835 91,534 57,154 84,703 + 4.03 +24.89 +29.60 + 8.14 + 8.37 + 1.39 +21.32 + 6.64 +25.37 9/30/97 $ 111,862 84,602 40,475 74,695 $ 100,916 100,597 38,480 77,957 $ 94,212 $ 99,710 84,081 92,380 59,205 42,535 82,025 78,876 966. - Li flJ,S68.- /, 4171, 7q4' io 03,78° FIREMEN'S RELIEF AND PENSION FUND NOVEMBER 1997 TRACI PAUL TREASURER THE FOLL8WING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH OF N'OVEMBER 1997. YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE PAYEES, IN THE AMOUNTS SHOWN, AND FOR THE PURPOSE SO STATED. • EMP# NAME 43 BAIRD, RICHARD H. 2 BLACKARD, PAUL 63 BOLAIN, ANN 44 BOUDREY, BETTY MRS. 45 BOUDREY, HOWARD 49 BOUDREY, JACK 4 CARL, FLOYD JR 5 CASELMAN, ARTHUR 57 CATE, ROY 6 CHRISTIE, ARNOLD 8 COUNTS, WAYNE 61 DAVIS, BEULAH F. 10 DEARING, EMMA MRS. 11 FARRAR, ALONZO 38 FRALEY JOSEPH G. 33 HARRIS, BILL C. 34 HARRIS, JAMES E. 64 JORDAN, CHARLIE 47 JUDY, DARRELL 37 KING, ARNOLD D. • 54 KING, ARVIL 12 LANE, HOPE MRS 13 LAYER, MERLIN 14 LEE, HAROLD 51 LEWIS, CHARLES 60 LEWIS, MARVIE 55 LEWIS, ROGER 40 LOGUE, PAUL D. 50 MASON, LARRY 39 MC ARTHUR, RONALD A. 35 MC CHRISTIAN, DWAYNE 15 MC WHORTER, CHARLES 29 MILLER, DONALD 42 MOORE, JAMES H. 17 MORRIS, WILKIE MRS. 16 MORRIS, WILLIAM H. 62 MORRISON, ELIENE 48 MULLENS, DENNIS W. 58 OSBURN, EDWARD 46 OSBURN, TROY 53 POAGE, LARRY 20 POLLY, GRACE A. MRS. 22 REED, JOE 30 SCHADER, EARVEL 41 SCHADER, TROY 23 SKELTON, BURL L. 24 SKELTON, LEE 56 SKELTON, ROY 36 SPRINGSTON, CARL 25 STOUT, ORVILLE 27 TUNE, MILDRED MRS. 26. TUNE, BLUE SUE • GROSS FED. TAX ST. TAX NET 1,191.06 100.00 1,091.06 55.00 55.00 55.00 55.00 1,641.57 180 00 1,461.57 1,383.66 1$83.66 1,088.98 28768 50.00 751.30 55.00 55.00 75.00 75.00 1,182.35 1,182.35 55.00 55.00 55.00 55.00 377.50 377 50 55.00 55.00 707.84 707.84 1,171.39 100.00 10.00 1,061.39 55.00 55.00 55.00 55.00 1,525.81 1,525.81 1,088.98 1,088.98 1,008.97 100.00 10.00 898.97 1,131.00 130.00 1,001.00 55.00 55.00 41750 417.50 55.00 55.00 1,088.98 1,088.98 570.91 570.91 570.92 50.00 10.00 510.92 1,902.69 175.00 20.00. 1,707.69 1,078.16 29.35 1,048.81 1,159.11 100.00 1,059.11 55.00 30.00 25.00 886.19 80.00 806.19 863.01 125.00 738.01 55.00 55.00 55.00 55.00 70.00 70.00 80.00 80.00 11448.31 1,448.31 1,646.01 160.00 1,486.01 1,255.55 65.81 1,189.74 1,556.57 200.00 30.00 1,326.57 55.00 55.00 55 00 55.00 923.01 923.01 1,007.92 20.00 987.92 692.50 42.50 650.00 390.00 390.00 1,626.02 126.02 50.00 1,450.00 609.88 50.00 9 88 550.00 590.36 50.00 540.36 80.00 80.00 80.00 80.00 • • 28 WATTS, DONALD 59 WATTS, WAYNE 52 '/RIGHT, RANDALL DROP EMPLOYEES JOHNSON, ROBERT MILLER, KENNETH WARFORD, THOMAS BONADUCE, MICHAEL 400.00 1,191.51 1,128.98 96.17 150.00 400.00 1,095.34 978.98 37,713.20 2,447.53 189 88 35,075.79 2,042.47 2,129.57 1,659.70 1,975.38 WE, THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE JUST AND CORRECT; THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID; THAT THE PENSION PAYMENTS SO CHARGED ARE IN ACCORDANCE WITH THE ACTIONS OF THE BOARD OF TRUSTEES OF THE FIREMEN'S RELIEF AND PENSION FUND; THAT THE SERVICES OR SUPPLIES FURNISHED, AS THE CASE MAY BE, WERE ACTUALLY RENDERED OR FURNISHED; AND THAT THE CHARGES MADE THEREFORE DO NOT EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR SER ICES OR SUPPLIES. Ii RETARY A.44441V CHAIRM AN4ESIDENT ACKNOWLEDGEMENT • STATE OF ARKANSAS ) i COUNTY OF WASHINGTON) )SS SWORN TO AND SUBSCRIBED BEFORE ME THIS leADAY OF / //eel NO Y PUBLIC MY COMMISSION EXPIRES: ?- /^ ®2 Oar 11997.