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City of Casselberry Police Of#lcers' and Firefighters" Pension Board of Trustees M inu tes of Febroary 14, 2017 Meetino race 2 of 5 A. Foster- & Foster, October 1, 2016 Actuarial ValUation Report IVIS. Christine Teal, Board Actuary, presented the October 1, 2016 Actuarial valuation Report Taal required contributions decreased this year by 2.3/(, of payroll shown as a requirement of?6.0% of payroll for plan year 2017 and 23.7°fin of payroll for plan year 2018. An overall favorable actuarial experience in plan year 201.6 along with changes made after- review of the experience study and the now required Use of the Florida Retirement System (FRS) mortality rates allowed the plan to see a decreased contribution rate. Sources of favorable experience overall included more active tenninations than anticipated and retirement experience. Slight losses that offset Borrie the gains included a 7.15% actual retun7 with four year smoothing, which was less than the 8.0% target and salary increases were somewhat higher than anticipated. As Deported in the Governmental Accounting Standards Board Statement Number 67 (GASB 67), with tlils plan year, the Plan Fiduciary Net Position as a percentage of Total Pension Liability has increased f ron7 a funded status of96.14% to a funded status of 102.5%. MOTION: : Member Farr Ore moved to Accept the October I, 2016 Actuarial valuation Report. Motion was seconded by Member Harkins. Notion carried by voice vote 4-0. B. AndCo Consulting — Quarterly Financial Review Presentation Hili-. Jade Evatt, AndCo Consulting, presented the performance review of investment activity for the quarter ending December 31, 2016. Mr. Evatt i n formed the board that Bogdalin Group has rebranded and the new firm name AndCo Consulting, stylized as &Co Consulting. Additionally, effective January 1, 2017, AndCo Consulting acquired Bidart & Ross in Reim, Nevada and now has offices in seven cities nationally. Major Market Index Performance: Tile November presidential election and the Federal Reserve rate increase in December benefitted the Domestic Equity market as reflected by the S&P Soo gaining 3.8% and the Russell 2000 index gaining 8.8%. Fined income markets rase based not only on the Federal Reserve rate increase, but also on an anticipation of future increases. The dollar has been very strong relative to most major world currencies, which has impacted inter -national equity marked negatively. Asset Allocation by Total F LLnd: The quarter ending December 31, 2016 began at S 19.76 million and ended at $20.13 million. Hoch contributions and recurs on investment contributed to a strong positive cash flow. Comparative Performance: The plan outpaced dic benchmark by .0 % over the quarter. Domestic stic guity oin osite: value stocks drove growth with vanguard Total Stock and Dreyfus Strategic 'Value outperforming wells Fargo Premier and Delaware Small Cap Core. International Equit Composite: Both managers strucraled as they are heavily invested in emercring markets and saw lowered results. Domestic Fined Income- Even thoug11 the numbers are negative for the quarter, the relative performance has been strong. Global Fixed Income.- The plan performcd 10% better than the benchmark with Templeton Global outperforming the benchmark by 15%. Alternative Income: Westwood income OppOI-4111ity Fuad, with its exposure to value oriented