Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: October 21, 2020 Electronic Zoom Meeting TIME: 11:00 A.M. Present: Doug Bagwell, Stan Chubinski, Tammy Giannunzio, Ed Guzzo & Jake Martin. Also Present: Justin Cohen, Dori Drayton, & Jeremy Tollas of Plante Moran Financial Advisors (PMFA)/CAPTRUST; Linda Morrison, Revenue Services Director; Sarah VanWormer, IT Director; Jessica Vanderkolk, Communications Manager; Nancy Mullett, Labor Attorney and Kourtney Matuschka, Finance Officer/Police & Fire Retirement System Administrator. Chair Chubinski asked for approval of the agenda. Motion Bagwell, seconded Martin to approve the agenda. On a voice vote, motion carried. Presented minutes of the regular meeting on September 21, 2020. Motion Martin, seconded Bagwell to approve the regular session minutes. On a voice vote, motion carried. Bank Summary of Assets & Expense Report: As of 9/30/2020, the market value of the portfolio was $162,410,871, a loss of $2,976,571 from the 8/31/2020 balance. As of 10/16/2020, the portfolio market value was $165,299,991, which is a gain of $2,889,120 since 9/30/2020. For the month of September, the following expenses were deducted. Additional Expense Type Payee Amount Frequency Details Misc Fees (asset manager) Misc Admin fees - non investment 1,205.86 Monthly 9/1 - 9/30/20 Total Admin. Fees 1,205.86 Motion Guzzo, seconded Giannunzio to accept the financial report and quarterly bank summary as submitted. On a voice vote, motion carried. Board Reports Bagwell – anticipating 2 retirements before the end of the year, one will enter the DROP other will be regular retirement. Chubinski – none. Giannunzio – none. Guzzo – inquired about the election to fill Police Representative vacancy. Matuschka will begin the election process in November. Drayton offered training opportunity for the new Board Member. Martin – none. Matuschka  Clifford Hill, Fire Lieutenant retired 9/30/20.  Scott Keeler, Fire Lieutenant entered the IAFF DROP program effective 10/4/20. October 21, 2020 Page 2 of 3 - Official  Correction to previous month’s report for Walter Hardy. His DROP effective date is 9/9/20.  Will begin the election process for Doug’s replacement, beginning of November.  The following resolution needs approved: JON L. HANCOTTE WHEREAS, the Board of Trustees is in receipt of an application for retirement from Jon L. Hancotte requesting an effective retirement date of 7/11/20, and WHEREAS, Jon L. Hancotte is eligible for retirement based on his service pursuant to Act 345 of the Public Acts of 1937, as amended, and retirement provisions of the union contract, and WHEREAS, the final actuarial calculation was received and, WHEREAS, Jon L. Hancotte elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Jon L. Hancotte for retirement is approved, and RESOLVED, the retirement benefit for Jon L. Hancotte shall commence as of 7/11/20, and RESOLVED, the gross monthly benefit is $6,131.13 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $4,153.35 for 21 days in July was paid on 8/6/20 and the regular gross monthly benefit shall begin 9/1/20. Motion Bagwell, seconded Martin to accept the retirement resolution for Jon L. Hancotte. On a voice vote, motion carried. New Business CAPTRUST – Asset Manager Portfolio Update: Drayton presented an update on the economic status.  Strong 3rd quarter returns in all asset classes and U.S. bonds are up 6.8% year-to-date.  Strongest 3rd quarter sector is consumer discretionary at 15.1% and the worst sector is energy with -19.7%.  For Fixed Income Market: 10 year Treasury Yield is at .69% on 9/30/20 compared to 1.68% on 9/30/19.  Best performer in large cap growth sector includes the technology companies.  Overall returns for the S&P 500 Index 8.9% for 3rd quarter and 5.6% year-to-date.  Market Performance varies based on which party controls Congress, House and Presidency. Reviewed annual S&P returns based on party control from 1933-2019. Cohen presented the monthly review of the portfolio as of 9/30/20.  Reviewed asset allocation as of 9/30/20 and historical data for the last 12 quarters, no rebalancing needed at this time. October 21, 2020 Page 3 of 3 - Official  Reviewed returns by asset manager, Loomis CIO is retiring in March and the deputy CIO is moving into the vacant role.  Portfolio year-to-date 5.69% vs benchmark of 3.76%. Public Comment – none. Next regular meeting: Monday, November 16, 2020 at 10:00 a.m. Meeting adjourned at 11:36 a.m. Respectfully submitted, Kourtney Matuschka, Recording Secretary __________________________________ __________________________________ Board Member signature Board Member signature