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City of Casselberry Police Officers' and Firefighters' Pension Board of Trustees Amended Minutes of November 13, 2013 Meeting Page 3 of 7 Mr. Mike Welker, The Bogdalm Group, informed the Board that Templeton Global came out with a new share class for institutional investors. The cost will go from 79 basis points to 75 basis points. Mr. Welker recommended the board make a motion to send a letter to Salem Trust authorizing the transfer of funds to the new share class. MOTION: Member Strenth moved to change share class of bond fund to Templeton Global Total Return Fund in order to save 4 basis points. Motion was seconded by Member Glancy. Motion carried unanimously by voice vote 5 -0. State contributions arrived and were immediately invested with Manning & Napier, Templeton, and PIMCO. Additionally, some funds were balanced intra- quarter. Mr. Welker then presented a performance review of investment activity for the quarter ending September 30, 2013. Asset Allocation: In the past few years, a 7.6% overweight in domestic stock has been beneficially maintained as stocks have done well. In addition, the plan has been underweight 4.2% in international, 4.9% underweight in domestic income, and on track for global fixed income. As the fund has grown, Mike recommended making a 10% investment in Core and Core+ real estate as it would increase diversification and returns. Investment policy needs to be updated to reflect the change in allocation. Mike suggested a minor rebalancing of the equity fiords to 50 %, international to 15 %, and fixed income to 25 %; leaving a balance of 10% to invest in real estate through a strategic underweight to domestic fixed income from 30% to 20% to provide funding for the real estate investment. Comparative Performance: Total fund balance for the fiscal year is up 14.83 %, the index is up 12 %, and the 3 year the plan is slightly under. With 5 and 7 years from inception, the plan has over performed. Mr. Welker introduced each of the real estate management companies and speakers about to present and stated that both plan managers are reduced risk Core fund focused, investing in high end established properties with a return of approximately 8% and solid income. He further stated that a decision need not be made today. Whatever decision is made will require a legal review and then the Calls for Capital would proceed over the next few quarters. C. Real Estate Management Companies a. American Realty Advisors Ms. Richelle Hayes, American Realty Advisors, presented the information that was provided in the presentation booklets included in the agenda packet to the Board. b. Intercontinental Real Estate Corporation Messrs. Peter Hapgood and Paul Nasser, Intercontinental Real Estate Corporation presented the