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HomeMy WebLinkAbout2001-10-25 Minutess MINUTES OF A MEETING OF THE FIREMEN'S PENSION AND RELIEF FUND BOARD OCTOBER 25, 2001 A meeting of the Fayetteville Firemen's Pension and Relief Fund Board was held on October 25, 2001, in Room 326 of the City Administration Building located at 113 W. Mountain Street, Fayetteville, Arkansas. PRESENT: Marion Doss, Pete Reagan, Danny Farrar, Robert Johnson, Ronnie Wood, Ted Webber, Kit Williams, and Heather Woodruff. MINUTES Mr. Wood moved to approve the minutes. Mr. Farrar seconded. The motion carried unanimously. PENSION LIST Mr. Williams stated Kelly Skelton would be turning nineteen m November. He has sent her a letter stating that if she was not in school full time then, her benefits would cease. Her money would then go to her younger sister. Mr. Reagan asked what the definition of a full time student was Mr. Williams stated he would guess that it would be twelve hours. But the statute did not say that. Mr. Webber stated the institution would determine the status. Mr. Reagan moved to approve the Pension List. Mr. Wood seconded. The motion carried unanimously. INVESTMENT REPORT Mr. Yada stated the report was as September 30, 2001. At their Last meeting the total market was down about five percent. As of Tuesday afternoon, they were at eleven million forty-nine thousand. Fifty-one thousand had been sent back to the checking account. The Dow Jones was down 16.99%. The S&P 500 was down 20.42%. The Nasdaq was down 39%. The stock market has been challenging and will probably continue to do so. They would be up and down until the economy was going again. The Private Portfolio was down 19.36%. Mercury Group was down 25%. They had out performed the Dow Jones and the S&P 500. Ashland was down 22.36%. The Income Account was up 8.59%, half of their money was in this account. The Long Term Treasury was up 6%. High Grade Cooperate Bonds were up 9.21%.- The Three Month Treasury was up 3.60%. The Income Account has out performed their index. Since January they have sent back to the checking account $462,000. They had been looking at the activity after September 11. There had been a lot of good activity. Leading up to September 11 the economy looked like it was beginning to stabilize. The economy has changed since the tragedy. The entertainment and airlines would not be doing well for a while. He thought the economy was going to continue this way through at least half of next year. • • Mr. Webber asked if they were investing in companies like Disney for the long term and did it make since to sell now. Mr. Yada stated if the fundamentals of the company were changing and there was something better that they could invest in, then he liked to see them do that. They knew Disney was not going to be doing anything for a while. Even if there was a lose, sometimes they had to cut their loses and go on to something else. Every thing they bought was not going to go up. If they could get six out of ten they were doing well. In response to questions, Mr. Yada stated Ashland was a growth manager and they were continuing with their same investment philosophy. No growth manager was making money right now. They were making money up until August of last year. Mercury was not giving them any performance since they had them. Mr. Reagan asked if he could foresee any changes m their policy over the next six to eight months. Mr. Yada replied no. He thought right now would be the wrong time to make any drastic changes. OTHER BUSINESS Mr. Williams stated the Council had approved their millage for next year. There was a question on whether or not they had to roll it back. He did not believe so. He thought it would remain at .4 mil for this year. Mr. Webber stated he had run across a report that use to be distributed on a quarterly basis. It was taken from the city's ledger. The format was a market bases which would be the same basis as what came on their statement, but it also added a cost basis which showed the activity of what they paid for it and what they sold it for. He would start distributing it to them. In response to questions regarding the Skelton case, Mr. Williams stated they had filed bnefs and the judge thought he could decide it on the briefs He would have the opportunity to do a reply brief if necessary. Mr. Reagan stated he believed Ms. Skelton thought Roy should have some money in the system after their kids benefits ended. Mr. Williams stated if that he did then she would get that money. Mr. Reagan stated he did not believe he would. What they put into the system would be drawn out the first two years. With a contribution of six percent of salary, they would draw out their contributions within two years. Meeting adjourned at 11:25 a.m.