Retirement Board

MINUTES OF REGULAR (Approved) RETIREMENT BOARD MEETING Thursday, May 12, 2016 Dogwood Conference Room City Hall 6:00 p.m. 1. Call to Order: The meeting was called to order by Chair Connie Rydberg at 6:15 p.m. 2. Roll Call: Present: Connie Rydberg, Richard Campbell, Ryan Davis, Larry Little, and Jason Widstrom Absent: Charles Collier and Marshall Jarrett Staff Present: Dianne Lowther, Richard LaCondre, La Taunya Hall and Beverly Reich Also Present: Mary Nye and Howard Pohl, The Bogdahn Group 3. Review and approval of the November 12, 2015 and February 18, 2016 draft minutes. Ryan Davis moved and Rick Campbell seconded to approve the minutes of May 12, 2016 as amended. The motion passed 5-0 (Charles Collier and Marshall Jarrett Absent) 4. Receipt of Petitions: None 5. Presentation by Howard Pohl and Mary Nye of the Bogdahn Group, discussed the First Quarter, 2016 Investment Performance for the Falls Church’s Basic and Police Pension Plans and the OPEB. Howard and Mary discussed that the First Quarter performance was a wild ride. The 1st half decreased by 10% but begin to bounce back 2nd half. The dollar weakend during this period but commodities did well. Although, the S&P was down it ended positive. Financials and healthcare did not do well during this period; interest rates declined and fixed income markets went up, however, international markets declined. Connie asked about rebalancing; which, Howard stated usually when cash is needed and/or calls for distribution. Mary stated that long term numbers are competitive and pretty good; while acknowledging Lazard’s struggle this quarter; but performing well overall. Connie asked if there was anything to worry about on the watch list; however, Mary stated not at this time, as they were generally performing as expected. There were no overall recommendations in changing indices and investments are ranking well and tough to beat that. The OPEB was at $9.7 Million with no activity in March. Next quarter money coming into OPEB from allocations that came into finance. The Board had no questions on OPEB. 6. Investment Consultant’s Report: Discussions centered on the option of having all investments of funds held at US Bank (custodian). Richard LaCondre discussed the issues with transferring funds and the need to assign a custodian so that the current 5 managers outside the custodian become inclusive. The current process needs to be streamlined. Connie inquired as to why this was initially set-up this way. Howard explained that the previous pressure were for new managers to be placed in custodian with US Bank; however, processes morphed and fees were minimal. Connie asked about fees currently being paid…Howard and Richard stated they were minimal and they would have the conversation. Mary suggests that the managers are streamlined and placed under the same custodian. Connie wanted to ensure fiduciary oversight and the Board agrees that the matter does not to be brought back prior to consolidation. Ryan moves to have Investment Consultant Bogdahn act as fiduciary and work with staff to consolidate all investments of the fund at US Bank. Rick Campbell seconded. The motion passed 5-0 (Charles Collier and Marshall Jarett absent) Connie asked about the process for auditing the Plan and if there was a recent one and if it includes fees that are paid out of the trust? Richard La Condre stated there was and the FY15 was available; however, not sure if it included fees paid out of trust. Connie requested that the ethic statements be brought to the Retirement Board meeting on August 11. Ryan Davis moved and Rick Campbell seconded it to recognize Beverly Reich for her 19 years of service to the Retirement Board, the City and Citizens and commending her for her services. The motion passed and was approved 5-0 (Charles Collier and Marshall Jarrett absent) 7. Other Business not on the agenda: 8. Adjournment: Ryan Davis moves to adjourn, Rick Campbell seconded to adjourn the meeting at 7:20 p.m. The motion passed 5-0 (Charles Collier and Marshall Jarett absent) THIS LOCATION IS FULLY ACCESSIBLE TO PERSONS WITH PHYSICAL DISABILITIES. TRANSLATION SERVICES OR ASSISTANCE TO PERSONS WITH DISABILITIES MAY BE REQUESTED IN ADVANCE OF THE MEETING. CALL 703-248-5127, FOR THE HEARING IMPAIRED, 703- 248-5419.