HomeMy WebLinkAboutMinutes - Pension Advisory Committee - 10/27/2020Pension Advisory Committee (PAC)
Minutes
October 27, 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, J Held, HR Manager, T. Hubbard, Deputy City Manager, City Clerk; D. Boyer, Police
Department; S. Baker, Appointed Citizen; From SEI, Pat Blizzard
Jaimie Held was appointed to take minutes.
Minutes and Agenda
Motion to accept 7/27/2020 meeting minutes, accepted.
There were two changes requested for the agenda and Jaimie updated
Market Performance Overview:
It was another positive quarter for risk assets, thanks to continued (though still partial) economic reopening, ongoing
fiscal and monetary support, and encouraging rebounds in economic activity.
• US large cap and emerging markets equities led the way, the former driven by mega cap technology and work-from-
home names, the latter by China’s ongoing recovery. Developed ex-U.S. and U.S. small cap equities lagged a bit but still
turned in solid returns for the full quarter.
• Bond returns were modest with the exceptions of high yield debt (thanks to continued improvement in default
expectations) and, to a lesser extent, inflation-linked bonds, as consumer prices rebounded from the shock of COVID19.
• Commodities had a very strong quarter. Gains were broad-based, with only two subcomponents (Brent crude oil and
heating oil) of the Bloomberg Commodity Index down for the full quarter. Silver, industrial metals, and agricultural
goods led the way, although month-to-month performance was volatile.
U.S. Equity Market
Equities turned in another solid quarter. Gains through the end of August were especially robust but were unwound to
some extent in September as concerns arose around further fiscal support.
• The Russell large cap growth index outperformed its value counterpart once again, as large growth sectors such as
technology and communications outperformed more value-oriented sectors like financials and energy.
• The Consumer discretionary, materials, industrials, and technology sectors returned 12% or better for the quarter,
reflecting confidence that economic activity would continue to recover from the initial shock of COVID19-associated
lockdowns.
International Equity Market
- Lags the U.S. have picked up pace
- City is well positioned for now
Fixed Income review
- Curve is currently down due to Pandemic
- Recession is still a low possibility
Defined Benefit Portfolio
- Flat fiscal YTD
- Up 5.52%
- Calendar year up 18.75%
- End market value on 10/21/20 39,037,313 million
o Cash flow
Receivables 196,122
Disbursements (1,456,858.23)
All actively managed funds out-performed with the exception of high yield bonds & Dynamic Asset Allocation
underperformed. Fixed Income had a 9.62% return.
Meeting adjourned at 2:50pm.
Next scheduled meeting Tuesday, January 19, 2021 at 2:00 pm.
Council Meeting that evening and presented virtually
Respectfully submitted,
Jaimie Held, HR Manager