Laserfiche WebLink
City of Casselberry Police Officers' and <br />Firefighters' Pension Board of Trustees <br />Minutes of November 13, 2012 Meeting <br />Page 2 of 7 <br />5. Presentations <br />A. Manning & Napier — Investment Performance Review <br />Mr. W. Gregory Holden, Manning & Napier, presented a performance review of investment <br />activity over the quarter ending September 30, 2012. <br />Domestic Funds: <br />Mr. Holden gave a verbal update regarding valuation of the portfolio. The ending market value <br />was $5,997,497. As of close on November 9, 2012, the value was $5,808,000. Mr. Holden <br />explained that the Plan's results show variations from the benchmarks because Manning & <br />Napier is an active manager and their philosophy is to build portfolios based upon valuation and <br />fundamentals, with a goal to work toward the long term objectives of the Plan. For the quarter <br />July 1, 2012 - September 30, 2012, dividends were up 8.75% which is an increase of over 2% <br />above benchmark. When looking over the long term time periods of 5 years and inception, <br />Manning & Napier has outperformed by 1 '/2 - 2% over benchmarks. <br />A question arose as to the correct inception date that is reflected on the reports. Mr. Welker <br />explained that when funds were initially invested with Manning & Napier, they were a mix of <br />both domestic and international funds. Later, as the domestic fund began to grow, the <br />international funds were separated from the domestic causing a change in the inception dates of <br />those funds. The plan inception date shows as October 1, 2007 because that is the date when the <br />funds were separated. <br />Total equity is out performing by 1.4% over the 5 year time period. A question arose as to why <br />the Bogdahn performance numbers were different from the Manning & Napier numbers. The <br />difference arises because Manning & Napier is using a different benchmark from Bogdahn <br />Consulting. Mr. Welker stated that he is confident in the figures shown in the Bogdahn quarterly <br />report. <br />International Funds: <br />Manning & Napier's strategy is to go after stock that is not driven by new products. We are in a <br />slow growth environment economically and Manning & Napier believes they will continue to <br />see volatility around slow growth. As a result, Manning & Napier must be oriented around <br />finding growth in an economy that will not grow rapidly. Volatility will continue to revolve <br />around the slow growth line. <br />B. The Bogdahn Group — Quarterly Financial Review <br />Asset Allocation <br />Allocations as of September 30, 2012 are spot on target. While there is a slight overweight of <br />United States investments relative to international, Bogdahn believes this to be a positive. The <br />policy statement looks good. There are no recommendations to make at this time regarding <br />Manning & Napier. The one and 3 year numbers for Manning & Napier are slightly under <br />performing, since inception, but they have added value relative to index. The underperformance <br />can be explained based on their historical process. Mr. Welker expects that if we continue to <br />