PB 08/16/2005 Minutes - Laserfiche WebLink

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(a) Tite securities meet the following ranking criteria: i, Fixed Income: Investment Grade or better as rated by Moody's and S&P, except that i 5% of the fixed income portfolio may be below investment grade, excluding international. Section 5 - There dial] be no foreign fixed income securities) MOTION; Moved Ity Mr. Tt•attlr Scltutte moved to autltarize changes as outlined lay the Board Attorney. The motion was seconded by Mr. David Gonzalez arul cat•t•ied tutanintously by voice vote. Mr. Christiansen stated that fire Board Itad adopted an ordinance that changed the limitation in equities ft•otn 60% at cost to 65% at market. Section III B, (1) will read "investments in corporate comntau stock and convertible bonds shall not exceed 65% of the Fund assets at market value." MOTION: Moved Uy Police Chief Johtt Pavlis to change Section III B(1} of the Investment Policy to read, "Investments in corporate comtttott stock and convertiUle bonds shall not exceed 65% of the I{'ruul assets at market value." The motion was seconded by Police Officer William Nas and carried unanimously by voice vote. Mr. Frank Schulte stated that Section III 3(b) omitted Convertible securities from the section. The Board Atfortrey stated that the section should read, "Not more than 5% of the Fund's assets shall be invested in the common stock, capital stock ot• convertible securities of any one issuing company. This limitation is mandated by the ordinance. MOTION: Moved by Mr. I'ranlc sclnrtte to arttend section 3(b) to state, "Not more titan 5°fo of the I+und's assets shall be invested in the common stoc[c, capital stock ar convert.ible securities of any Otte issuing company..." The rttotiott was seconded by Mr. David Gonzalez and carried unanimously by voice vote. Mr. Welker stated that because the Board has changed the fixed income securities to allow investment grade and below investment grade, he recommended change in II. (A)(1}Second sentence to read, "The performance of this portfolio will be compared to the return of a portfolio comprised of 65% Standard & Poor's 500 Stock Index and 35% Lehman Brothers Aggregate Bond Index." MOTION: Moved Ity Police Chief John Pavlis to amend Section II (A)(1) to state "The performance of this portfolio will be compared to the t•eturn of a portfolio cotttprised of 65% Standard & Paor's 500 Stock Index and 35% Lehman Brothers Aggregate Bond Index." The motion was secoruled by Mr. David Gonzalez and carried unanimously by voice vote. Mr. Welker stated that for consistency, the change in Lehman Brothers Aggretate should also be stipulated in Section C. -Fixed Income Performance,