HomeMy WebLinkAboutMinutes - Pension Advisory Committee - 07/21/2020Pension Advisory Committee (PAC)
Minutes
July 21, 2020
The South Burlington Pension Advisory Committee held its regular quarterly meeting on July 21, 2020 2:00 pm at City
Hall.
Members present: T Barrett B Datillio, T Greggory, J Held, HR Manager, T. Hubbard, Deputy City Manager, City Clerk; D.
Boyer, Police Department; S. Baker, Appointed Citizen; From SEI, Pat Blizzard and Eric Schait from New Port Grp.
Jaimie Held was appointed to take minutes.
Minutes and Agenda
Motion to accept 1/21/2020 meeting minutes, accepted.
There were no changes requested for the agenda.
SEI review of markets and performance
Flat fiscal YTD – market is stabilized.
- Longer durations did better
- Downward pressure on commodities
- Overall good calendar year to date on equity
U.S. Equity Market
After a strong April, equity markets continued to rally in May and June with the help of a supportive Fed,
reopened economies, declines in new COVID-19 cases, and reported progress on a COVID-19 vaccine.
In the U.S., equity returns were strong with corporate earnings contracting approximately 14% in the first quarter from
first quarter 2019. As of June 3, the S&P 500 Index returned over 37% in the 50 preceding trading days, making it the
index’s largest 50-day rally in history.
Broad themes for the month included developed markets outperforming emerging markets, growth outperforming
value, and small caps outperforming larger cap stocks, as small cap stocks recovered from being the hardest-hit asset
class in the first quarter.
International Equity Market
- Lags the U.S. are expected to continue with current economy
- City is well positioned for now
Fixed Income review
- Curve is currently down
- Recession is still a low possibility
Defined Benefit Portfolio
- Flat fiscal YTD
- Up 6.04%
- Calendar year up 18.75%
- End market value on 7/16/20 37,610 million
o Cash flow
Receivables 196,122
Disbursements (1058,245.29)
All actively managed funds out-performed with the exception of high yield bonds & Dynamic Asset Allocation
underperformed. Fixed Income had a 9.62% return.
Un-Funded Policy
Discussed by Eric Schait, our Actuary and recommending an additional payment over 20 years – 2039
Meeting adjourned at 3:10pm.
Next scheduled meeting Tuesday, October 20, 2020 at 2:00 pm.
Presentation to Council that day as well.
Respectfully submitted,
Jaimie Held, HR Manager