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HomeMy WebLinkAboutFebruary 5, 2018 MinutesMINUTES  OF  BOARD  MEETING ELK  GROVE  FIREFIGHTERS  PENSION  FUND February  5,  2018 CALL  TO  ORDER A  meeting  of  the  Firefighters  pension  fund  was  held  on  February  5,  2018  in  Conference  room  “A”  at the  Charles  Zettek  Municipal  Center  located  at  901  Wellington  Ave.  Vice  President  Mike  Belpedio   called  the  meeting  to  order  at  1:50PM. ROLL  CALL The  following  members  attended  the  meeting:  Bernard  Goss,  Mike  Belpedio and  Tim  Sexton.   Additional  attendees  included  Christine  Tromp  (Treasurer),  Brian  Koehler and  David  Wernecke  of   Marquette  Associates. MINUTES A  motion  was  made  by  Mike  Belpedio  to  accept  the  minutes  from  the  pension  board  meeting held  on  November  6,  2017.  Bernard  Goss  seconded  the  motion.  The  motion  passed  unanimously.   REPORT  OF  INVESTMENTS David  Wernecke  of  Marquette  Associates  submitted  a  quarterly  review/report  of  the  Elk  Grove Village  Fire  Pension  Fund  investments  dated  December  31,  2017  explaining  its  contents. In  summary,  the  total  fund  returned  3.2%  (net)  for  the  quarter,  slightly  underperforming  the  policy   benchmark  return  of  3.4%.  The  total  fund  had  a  return  of  13.1%  (net)  for  the  year,  slightly   underperforming  the  policy  benchmark  return  of  13.3%.  The  total  fund  market  value  as  of   December  31,  2017  was  $75,257,480.  David  explained  the  fund  growth  was  driven  by  strong   returns  from  both  U.S.  and  international  equities,  supported  by  corporate  earnings  and  a  3%   growth  in  GDP.  Yields  have  risen  in  the  bond  market,  in  line  with  projects  of  inflation.       David  made  the  recommendation  of  terminating  the  position  in  the  Harbor  International  Fund  by   moving  the  balance  of  $3,390,700  into  the  Vanguard  Total  International  Stock  Index  Fund.  David   explained  the  Harbor  Fund  had  failed  to  meet  its  bench  mark  for  the  fourth  consecutive  year  and   Marquette  Associates  researchers  see  uncertainty  in  the  future.  This  reallocation  would  increase   the  Vanguard  Total  International  Stock  Index  Fund  to  a  bench  mark  of  9%  of  the  policy,  while   maintaining  the  Non-­‐U.S.  Equity  Composite  at  14%  of  the  policy.   Mike  Belpedio  made  the  motion  to  approve  this  action.  Tim  Sexton  seconded  the  motion.  The   motion  passed  unanimously.     David  submitted  the  Annual  Consultant  Disclosure  to  the  board,  fulfilling  Public  Act  100-­‐0542.   TREASURER’S  REPORT Christine  Tromp  submitted  a  balance  sheet,  open  investment  listing  and  disbursement  register with  no  increases  to  pension  payments  as  of  December  2017.  Christine  reviewed  and  explained  the   contents  to  the  board.  The  fund  total  cash  and  investment  balance  as  of  December  31,  2017  is   $77,036,260.  No  new  benefit  requests  or  recipients  were  added  since  the  last  board  meeting.     Beneficiaries  received  January  1st  increases.     The fund received a revenue of $974,430 from the Electric Use Tax and Christine explained approximately $500,000 can be anticipated for next year. No  actions  recommended.     Bernard  Goss  made  the  motion  to  approve  this  report.  Mike  Belpedio  seconded  the  motion.  The   motion  passed  unanimously.   OLD  BUSINESS None NEW  BUSINESS The  board  discussed  the  retiree  election.  Bernard  Goss’s  term  is  up  on  April  30,  2018.  Bernard   stated  he  will  be  running  for  reelection.  Election  notices  will  be  mailed  to  retirees  prior  to  March  1,   2018.   ADJOURNMENT Mike  Belpedio  made  a  motion  to  adjourn  the  meeting.  Tim  Sexton  seconded  the  motion.  The motion  passed  unanimously.  The  meeting  was  adjourned  at  2:20  PM. The  next  regular  meeting  date  will  be  Monday,  May  7th,  2018  at  1:30  PM,  in  Conference  room “A”  of  Village  Hall. Respectfully  submitted  by:   Mike  Belpedio Vice-­‐President,  Elk  Grove  Village  Firefighters  Pension  Fund