2007-10-16 - Police Pension Board - Minutes Board or Commission: ❑ Police Pension Board
Document Type: ❑A e
g nda 0 Minutes
Meeting ate: 10/16/2007
Type of Meeting: ❑ Regular Meeting
BUFFALO GROVE POLICE
PENSION FUND
Police Pension Board Minutes
Regular Meeting— October 16, 2007
I. Call to Order- 6:30PM
I. Attendance
Kristiansen—present Feld—present Fox -present
Tenerelli -present
Eisenmenger—present Voigt—present Anderson—present
I. Minutes
July 10, 2007 minutes
Motion to accept the minutes by Trustee Voigt
Seconded by Trustee Eisenmenger Vote: 5 ayes
0 nayes
I. General Business
Invoice paid to Mesirow Financial $7164.54 (2007 2nd& 3rd Quarter Management Fees)
Invoice paid to Illinois Public Pension Association $350.00 (2007 Annual Training
Conference)
Stratford Investment Advisory Group
Forecast—many uncertainties in the economy, watch commodities
Recommendation— Purchase t-strips due in 2012, 2015, 2020, and various stock
funds
Fixed Income: 3rdQtr. 3.7% YTD 4.9% Trailing 12
month 5.6%
Equities: 3rd Qtr. 5.5% YTD 10.2% Trailing 12
month 15.2%
• Motion to accept recommendation: Trustee Eisenmenger
• Seconded by: Trustee Kristiansen Vote: 5 ayes
0 nays
Mesirow Financial
Mr. Ackerman & Lamarca recommended liquidating the board's annuity stating
most board's that he manages do not hold annuities, board must contact UBS
to liquidate
Mr. Ackerman & Lamarca provided a report of all holdings managed by Mesirow
Mr. Ackerman & Lamarca reviewed investment policy and found that it meets
code requirements
Forecast—volatile market conditions
Recommendation—retain current mutual fund holdings, increase foreign equity
exposure by purchasing American Funds EuroPac blended F shares or other
comparable equity, hire asset manager specializing foreign equities.
3rd Qtr.86% YTD: 7.30% Trailing 12 month:14.00%
• Motion to accept recommendation: Trustee Kristiansen
• Seconded by: Trustee Feld Vote: 5 ayes
0 nays
Next regular meeting scheduled for January 8, 2008
I. New Business
Trustee Kristiansen researched insurance riders for public pension boards through
Travelers and Mesirow; they are becoming more common, approximately $10,000
annually for $2 million coverage
Trustee Eisenmenger and Trustee Kristiansen recommended the board retain an attorney
for board matters, according to information obtained at the IPPFA conference, many
boards have attorneys on retainer, board members agreed that additional research is
needed
Trustee Kristiansen and Trustee Kristiansen recommended the board research hiring a
financial consultant to assist with asset manager selections, policy review, portfolio
management, etc., the board agreed to hold a special meeting in November to hear a
presentation from Wall & Associates
Trustee Kristiansen provided the board with copies of the 2006-2007 actuary report dated
September 9, 2007 from TWS Actuary for review
Mr. Andersen stated the actuary is available for a special meeting in November and that
the report must be approved by the board by the end of December 2007, the board
agreed to hold a special meeting in November
Mr. Andersen reported that there is 8.3 million in the downstate fund
Mr. Andersen will provide UBS Annuity and Stratford holdings to Mesirow for overall
analysis
Officer Gozdecki & Ofc. Hawkins tendered applications for entry into the pension fund
Motion to accept: Trustee Kristiansen 2nd Trustee Voigt
I. Old Business
None
L Adjournment — 9:o0PM