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HomeMy WebLinkAbout1999-01-28 Minutes• • • MINUTES OF A FIRE PENSION AND RELIEF FUND MEETING JANUARY 28,1999 A meeting of the Fayetteville Fire Pension and Relief Fund was held on January 28, 1999, at 11:00 a.m. in room 326 of the Fayetteville City Administration Building at 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Mayor Hanna, Darrell Judy, Ron Wood, Bill Morris, Marion Doss, and City Clerk Heather Woodruff. ABSENT: Pete Reagan MINUTES Mr. Darrell Judy moved to approve the minutes of the last meeting. Mr. Ron Wood seconded the motion. Upon roll call the motion carried unanimously. PENSION LIST Mr. Bill Morris moved to approve the pension list. Mr. Marion Doss seconded the motion. Upon roll call the motion carried unanimously. INVESTMENT REPORT Mr. Richard Yada explained New Mexico had been down 2% over the year and had underperformed in the market. In November, the board had changed companies and gone to Merrill Lynch Private Portfolio Group. They had started slowing investing in December. They were still getting into the stock market. They were having a hard time finding a value in stock. He explained the change would probably have a negative affect because New Mexico had shown a loss in capitol gains. He hoped they would be able to recover before the next actuary. The income account was up 6% for the year. Ashland was up over 34% for the year. They had out performed the market by over 6%. He thought the income account would have a harder time this year getting a higher rate of return. Current asset allocation: 41 % Stocks, 44% Bonds, 14.5% Cash and 1% other. Their target for stocks was 47%. They were currently were they wanted their asset allocation. Mr. Curtis William explained what their economist had forecasted. They were looking for • • • continued growth in 1999. They did,not see a significant slow down in economic activity as they had seen in October. They did not see any down turn in the economy at this point. However, what was going on in Latin America with Brazilian situation which would have an affect on exports in this country. If their crisis spread then they would have to revise their forecast. They were not as comfortable with what they were seeing in the stock market. 1998 was the four significant up year in a roll, which had neverhappened before. There were some serious excesses in the market, especially in the inter net stock which was a mania. People were buy stock at a high price in companies which had no earnings They were looking for some type of corrective phase in the first half of the year They were going to be cautious for a while, but long term it should be a good time to invest. Currently, they were being very conservative. NEW BUSINESS DROP PLAN • Mayor Hanna stated there were two applicants for the Drop Plan. Mr. Doss moved to approve Dennis Ledbetter's application for the Drop Plan. Mr. Wood seconded the motion. Upon roll call the motion carried unanimously. Mr. Wood moved to approve Ralph Tate's application for the Drop Plan. Mr. Judy seconded the motion. Upon roll call the motion carried unanimously. LETTER Mayor Hanna read a letter from Ashland Management asking if we were interested in receiving their ADV form. Mr. Yada suggested we write and request the form. DONATION Mayor Hanna noted the pension fund had received a donation from Ms. Kathryn Stout. Ms Woodruff stated she had sent a Christmas card with a $400 check. She added she had sent Ms. Stout a thank you letter. Mayor Hanna stated she had supported both the Fire and Police department for years and had donated to them before. Meeting adjourned at 11:30 a.m.