Loading...
HomeMy WebLinkAboutMinutes - Pension Advisory Committee - 01/22/2019Pension Advisory Commiee (PAC) Minutes 22 January 2019 The South Burlington Pension Advisory Commiee held its regular quarterly meeng on Tuesday, January 22, 2019, 2:00 pm at City Hall. Members present: T. Hubbard, Deputy City Manager; B. Dalio, Fire Department; D. Boyer, Police Department; T. Barri, City Council; From SEI; Pat Blizzard, Mike Smith. Minutes and Agenda Minutes from October 23 meeng were reviewed and approved. There were no changes to the agenda. Overview of Market & SEI Review of December 31, 2018, Net Performance Report PB reviewed the 4th quarter of 2018. Porolio value 12/31/2018 was $31,313,090. Net return for fiscal YTD (3 months) was -8.74%. SEI is not recommending any changes in our current investment strategy. Investment Notes US equity markets had a difficult quarter as large cap stocks closed the quarter down 4.8%. There were no gainers in equies, commodies, or in bonds, and the market correcon in the 4th quarter overall was extremely harsh. The US yield curve connued to flaen in Q4. Market expectaons are skepcal that the Fed will raise rates at all in 2019. Tax cuts have had an even larger impact on corporate earnings than was expected, thus profit margins will likely come down meaningfully in 2019. The late 2018 selloff has pushed valuaons back down to moderate levels. China economy and trade developments connue to weigh heavy, and Brexit concerns will connue to hurt investor senment toward Europe. The US and global markets should connue to expand in 2019, although that growth will likely be slower than in 2018. The S & P 500 is up 5.6% in the first 3 weeks of 2019, gaining back some of the loss from Q4 of 2018. Most markets have now corrected to more aracve valuaon levels. Market value of assets as of 1-17-19 is $32,477,291. Council presentaon Pat & Mike will present a similar overview to the Council tonight, as part of their annual report to City Council, and respond to any quesons from the Council and the public. Next Meeng The next meeng will be held on Tuesday, April 23rd, 2019, at 2:00pm. Meeng adjourned at 3:28 pm.