Firefighters Pension Board Fund

Geneva Firefighters Pension Fund Meeting Minutes – January 22, 2015 Present: Pat McQueeny, Tom Dahl, Steve Olson, Phil Affrunti Absent: Frank Johnson Also Present: Craig Larsen, AHC Advisors Jorie Pitt, AHC Advisors The meeting was called to order by President Dahl at 9:04 am in the fire department conference room. 1. Review minutes from previous meetings held October 23, 2014. President Dahl asked the Trustee’s to consider the meeting minutes for October 23, 2014. They were previously distributed in electronic form to all board members. Pat McQueeny moved to accept the minutes as presented 2nd by Tom Dahl Ayes 4 Nays 0 Absent 1 2. Consider application from FF Eric Blaser for admission to the Geneva Firefighters Pension Fund. President Dahl submitted the application for admission to the Fund from Eric Blaser who was sworn into his new position during the December 1, 2014 City Council Meeting. Tom Dahl – Motion to accept the application Pat McQueeny – 2nd the motion Ayes 4 Nays 0 Absent 1 3. Establish date for elections for the expiring terms of Frank Johnson (retired), and Phil Affrunti (active) who is filling the unexpired term of Gerald Koster. Phil Affrunti moved to set Thursday, April 16, 2015 for the election with the canvas to follow during the next regularly scheduled meeting on April 23, 2015. Pat McQueeny 2nd the motion Ayes 4 Nays 0 Absent 1 4. Consider updates to the Fund’s investment policy. Craig Larsen of AHC Advisors led the Board in a discussion about the Fund Allocation targets currently in place by looking at recent performance and both the bond markets and the effects of changes in currency exchange rates can have on investments. The overarching goal is to position the Fund to enable it to take advantage of changes in the bond markets and also protect it from significant fluctuations. He suggested the Fund is currently too small to have a diverse bond portfolio and recommended the use of the “Vanguard Short-Term Investment- Grade” fund in the alternate. The majority (71.44%) of the bonds held by this fund are rated “A” or better. He believes it to be well diversified and led the Board through a pe4rformance report on the fund dated 12/31/2014. The consensus of the Board was to accept the recommendation to adjust the Allocation Model and transfer Pension Board cash assets with the following motions: A. Adopt updated asset allocation targets. Tom Dahl motioned as stated above. Phil Affrunti 2nd Ayes 4 Nays 0 Absent 1 B. Establish a new account with Fidelity to hold the Vanguard Short Term Investment Grade bond mutual fund. Phill Affrunti motioned as stated above Pat McQueeny 2nd Ayes 4 Nays 0 Absent 1 C. Direct Sawyer-Falduto to sell $1,100,000 from the bond portfolio. Tom Dahl motioned as stated above Pat McQueeny 2nd Ayes 4 Nays 0 Absent 1 D. Direct Sawyer-Falduto to transfer $635,000 from the bond sale to the newly opened Fidelity account holding the Vanguard Short- Term Investment Grade funds. Phil Affrunti motioned as stated above. Pat McQueeny 2nd Ayes 4 Nays 0 Absent 1 E. Direct Sawyer-Falduto to transfer $465,000 of the bond sale to Fidelity for investment in the Equity account according to the asset allocation targets. Ayes 4 Nays 0 Absent 1 5. Review performance of pension fund and investment and recent transactions.  The Board review the reports submitted by AHC Advisors and Sawyer-Falduto without comment 5. Consider bills for payment in the amount of $11,425.44 (attached) Pat McQueeny motioned to pay the bills as presented. Phil Affrunti 2nd Ayes 4 Nays 0 Absent 1 6. Entertain comments from trustees. Tom Dahl mentioned the Police Pension Fund recently submitted an annual Municipal Compliance Report which is due each year before the City Council sets a levy. A review shows this Fund has never submitted such a report as the Board was not aware one was required, nor has this requirement identified in the recent audits by the Illinois Department of Insurance or by the City auditor. Tom has obtained quotes from Lauterbach & Amen to develop the report for the Board. This will be placed on the agenda for the April 23rd Board meeting. 7. Entertain comments from public attendees. No comments Pat McQueeny moved to adjourn the meeting at 10:15 am 2nd by Steve Olson Ayes 4 Nays 0 Absent 1 Respectfully submitted Steve Olson