Retirement Board

APPROVED MINUTES RETIREMENT BOARD MEETING Thursday, May 14, 2015 City Hall Dogwood Room 6:00 p.m. 1. Call to Order: The meeting was called to order by Vice Chair Richard Campbell at 6:00PM. 2. Roll Call Present: Richard Campbell, Charles Collier, Ryan Davis, Larry Little, Marshall Jarrett and Patricia De Walt. Absent: Connie Rydberg Staff Present: Richard Parker, Richard LaCondré and Persephoné Robinson. 3. Review and approval of the February 12 and April 7, 2015 draft minutes. Ryan Davis moved and Charles Collier seconded to approve the minutes of February 12 and April 7, 2015. The motion passed 4-0 (Marshall Jarrett and Patricia De Walt did not vote). 4. Receipt of Petitions: None 5. Presentation by Julie Pierro of UBS Real Estate Investment Funds. Julie Pierro, Client & Portfolio Services Director of UBS Real Estate Investment Funds presented to the Board an overview of the company, their philosophy and investment strategy. Real estate is a prominent business area within UBS Global Asset Management and they have a value driven investment philosophy. Their mission is to provide both superior risk-adjusted investment performance for their clients through private real estate investment strategies and outstanding client service. Their strategy is income-focused, strategic low leverage approach, diversification through proprietary inventory model, selective value added investment (build to core) and economically supported sustainability. 6. Review of the Investment Performance for the First Quarter of 2015 for the Basic and Police Pension Plans by Howard Pohl and Mary Nye of the Bogdahn Group. Overall investment returns during the 1st quarter of 2015 were positive. Domestically, small and mid cap companies outperformed large cap companies for the second consecutive quarter. This outperformance is due largely to a strengthening U.S. dollar, with large cap companies in the S&P 500 Index generally having more international currency exposure versus the more domestically focused small cap companies in the Russell 2000 Index. Trailing one-year returns, U.S. large company stocks outperformed all indices except the Russell Mid Cap Index. Despite the strong quarter, developed international stocks posted negative returns with emerging market stocks finishing the year  positive. Bond returns over the last 12 months were strong; this was primarily due to fallen interest rates. The Basic Plan’s assets increased from $89M to $91M during the quarter. The Police Plan increased from $26M to $26.9M during the quarter. The Basic Plan had an overall return of 3.18% during the quarter while the Police Plan returned 3.11%; both returns were in the top quartile. OPEB increased from $9.7M to $9.9M during the quarter with an overall return of 2.43%; returns being close to index. 7. Plan Administrator’s Report Richard Parker informed the Board that the AMRS-VA (Association of Municipal Retirement Systems of VA) is providing training for trustees in Williamsburg, VA on October 18-19, 2015 and encouraged the new and current Board members to attend. 8. Other business not on the agenda: None 9. Adjournment Ryan Davis moved and Larry Little seconded to adjourn the meeting at 7:15PM. The motion passed 6-0. THE CITY OF FALLS CHURCH IS COMMITTED TO THE LETTER AND SPIRIT OF THE AMERICANS WITH DISABILITIES ACT. TO REQUEST A REASONABLE ACCOMMODATION FOR ANY TYPE OF DISABILITY, CALL 703-248-5128, TTY711.