PB 08/13/2013 Minutes - Laserfiche WebLink

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City of Casselberry Police Officers' and Firefighters' Pension Board of Trustees Amended Minutes of August 13, 2013 Meeting Page 2 of 5 5. Presentations A. The Bogdahn Group Mr. Mike Welker, The Bogdahn Group, presented a performance review of investment activity for the quarter ending June 30, 2013. Domestic Market: The domestic market was positive by about 3% for the quarter. The best performing sectors were healthcare, financials, and consumer discretionary. Fixed Income Market: The fixed income market was down 2.3% for the quarter. The fixed income market could go down 2% or up 5.5% over the next year, in a best case scenario. Allocation: Currently, the Plan has $3.7 million in Galliard domestic fixed income and roughly $500,000 in global fixed income. 30% of the portfolio is in an asset class that is not predicted to do well over the next year. Financial Reconciliation: The return on investment for the quarter was down $26,555. The stock portfolio was up $63,824 and the bond portfolio went down $90,380. Fiscal year to date, the fund has made almost $1 million. This is mostly due to stocks which were up 15 %. Performance: The Plan is outperforming in every time period, except the 3 year period. In the Universe Rankings, the Plan is in the top 4 %. Comparative Performance: Manning & Napier: Over time, has done a good job for the fund. Out performed in the international markets. Galliard Domestic Fixed Income: In line with the Index. More yield; over time will outperform the Index. Considering a change to a new asset class. Templeton and PIMCO Global Income: As fund has matured, and added new classes and asset managers, the fund has performed well. Real Estate Evaluation Discussion Bogdahn would like the board to consider what they believe is a natural progression to move to a Private Property Open End Core Core/Plus. Core /Core Plus = Manager created fund, invest in mostly major metropolitan area major properties. Net of fees, expect between 4 -6% return. Properties may be flat in next 1 -2 years, but it almost doubles the rate of return as compared to bonds. Low volatility. Open End Fund = Invest over time. If you like it, you can invest more. If not, you can redeem investment.