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HomeMy WebLinkAbout2020-04-16 - Minutes Policemen's Pension and Relief Fund Board of Trustees Minutes • _ April 16.2020 Page I of 3 �FAYETJ� Lioneld Jordan Chairman /{ ,�•�\ Ruston Cole Retired Position 2 Kara Paxton Treasurer Eldon Roberts Secretary to ) John Brown Retired Position 3 Retired Position I ? Melvin Stanley Retired Position 4 f�i�� Frank Johnson Retired Position 5 �{t M \RKANSP/ Policemen's Pension and Relief Fund Board of Trustees Meeting Minutes April 16, 2020 A meeting of the Fayetteville Policemen's Pension and Relief Fund Board of Trustees was held on April 16,2020 at 3:00 p.m. via teleconference in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Mayor Jordan called the meeting to order. Board Members Present: John Brown, Ruston Cole, Eldon Roberts, Melvin Stanley, Mayor Jordan and City Clerk Kara Paxton. 110 Staff and Others Present: City Attorney Kit Williams, Glenn Atkins,James Bell, and Watkins-Bradley with Garrison Financial. Kerry Absent: Frank Johnson Garrison Financial: Quarterly Reports ending December 31,2019 and March 31,2020 City Clerk Kara Paxton: Garrison Financial cannot be with us today. We have provided all the quarterly statements that they sent into our office for review. Those are in the packet that was emailed, and it is quarterly reports ending December 31, 2019 and March 31, 2020. Minutes: Approval of the October 17,2019 meeting minutes Ruston Cole moved to approve the October 17,2019 meeting minutes. John Brown seconded the motion. The motion passed 6-0. John Brown, Ruston Cole, Mayor Jordan, Eldon Roberts, City Clerk Kara Paxton, Melvin Stanley voted yes. Frank Johnson was absent. . Pension List Changes: Richard Watson deceased October 23,2019 Policemen's Pension and Relief Fund Board of Trustees Minutes April 16.2020 Page 2 of 3 Approval of the Pension List: Approval of the revised November and December 2019 and the January, February, March and April 2020 pension lists. Approval of the May, June, July, August, September, and October 2020 pension lists. Eldon Roberts moved to approvWnhRuston CoIe Lists. SMavor Jordana Eldon Roberts,the City Clerk The motion passed 6-0. John Brown, Kara Paxton,Melvin Stanley voted yes. Frank Johnson was absent. New Business: Signature Authority City Clerk Kara Paxton: I have been contacted by Garrison Financial. They found after Sondra passed away that they had not added a name that et to the accounts. As a the accounttings membs alongewit Mayor r and being the City Clerk Treasurer,they have askedmy name be added to Jordan. Currently Mayor Jordan is the only one that is listed on those accounts. • Eldon Roberts moved to approve to add City Clerk Kara Paxton to the accounts. Ruston Cole seconded the motion.The motion passed 6-0. John Brown,Ruston Cole,Mayor Jordan, Eldon Roberts, City Clerk Kara Paxton, Melvin Stanley voted yes. Frank Johnson was absent. Kerry Watkins-Bradley, Garrison Financial: I apologize I jumped on the call as you guys were approving the minutes. I wanted to give you a brief update because of what all has happened. The markets have really taken a hit in the first quarter. We were down about 14%through the end of the quarter. I will say we have rebounded nicely. I think we are down about 9.5% now. This situation certainly gives us great pause as there is no clarity as to how we are going to come out. We are of the mind that we will get back to business sometime this year. If the economic damage that it is doing right now with everything shut down is immeasurable. We have sold a few positions in the portfolio. We did that earlier in March before the market bottomed. I did sell a little more this week on the equity side, so we are a little under allocated in equity right now. What we want to do for you is make sure we have enough liquidity going out for a year to get your distributions and not have to sell. For instance, on the twenty-third of March, when the equity markets bottomed, the stocks are up about 24%from the low. It is the worst quarter we have had since the 80's or 70's. With the bonds coming due in the portfolio and what we have raised on the equity side, now that we have had a nice recovery, will get us through the next year. Getting back to February highs may take a while going into a sell off in this Pandemic. Valuations were already a little high in our opinions. We didn't envision something like this happening. We are very pleased with the market rebounding, but I am not sure if it is going to stick. What we are focusing on is the bond side and the stock side is a good cash flow, good balance sheet, and that is something we . always tended toward. Some of those companies with a little more leverage that we might like to buy we are going to steer clear of for the next six to eight months. The government is going to Policemen s Pension and Relief Fund Board of Trustees Minutes • April 16.2020 Page 3 of 3 bail out a lot of folks, but a lot of folks won't be. We had a great year last year. The account is down about 9.5%. We are having a pretty good day today and we are hoping for the best. We are under equity and we do have plenty of cash for you. City Clerk Kara Paxton: I already have all that paperwork in my office. Garrison Financial had already sent that over to me. We just needed to go ahead and have this vote before we could go forward on that. Kerry Watkins-Bradley: Great. We can come and pick it up whenever. Just shoot me an email and I can send someone over to grab it. City Attorney Kit Williams: Kerry you are saying you are little or over do you need any action from the board to approve to sell. Kerry Watkins-Bradley: We don't. We have variances on either side of the asset allocation policy. We are within that variance. Board Member John Brown: Kerry I received some phone calls from some of the retired officers. Most of the questions were how much we are down. Kerry Watkins-Bradley: The volatility has come down a bit. It swings 400 to 500 points a day every day now. Honestly, in your portfolio, we don't own any hotels, cruise lines. We have • Phillips 66 and Conoco. They are down a lot, but we certainly think they are going to be around and make it out of this. We have a lot of those staple names in your portfolio. We have always tended to be on the conservative side. We are seeing those large caps hold up much better. We do have some small and medium sized companies in the portfolio so those were detractors. Everything we own we feel very comfortable with their leverage and their ability to weather this. Informational: Next Meeting—October 15, 2020 Note: All meetings are tentative and subject to change. The City meetings calendar is located on ‘1,«w.tavettev i I I e-ardiZuv Board Member Eldon Roberts: I believe, in April,we should be having Pension Board Elections for two members. It is Rus Cole and Frank Johnson. Every April we have to have elections for spilt terms. City Clerk Kara Paxton: Kim and I will be working on that this next week. We already have that on the calendar. The Police Pension Elections and the Fire Pension Elections they come up in the same time period. This is on our schedule all this next week. You will be receiving additional information about that. If you have any questions at all, please feel free to reach out to our office. • Adjourn: 3:18 p.m.