HomeMy WebLinkAboutMinutes - Pension Advisory Committee - 10/24/2023
_____________________________________________________________________________________ Pension Advisory Committee (PAC) Quarterly Meeting Tuesday, October 24, 2023 2:00 p.m. City Hall Conference Room 301, 180 Market Street Attend Virtually: https://meet.goto.com/SouthBurlingtonVT/pensionadvisorycommitteemeeting10-24-2023
You can also dial in using your phone. Access Code: 302-315-605 : +1 (312) 757-3121
MINUTES ______________________________________________________________________________ Attendees: Marcha Machar, Daisy Brayton, Dan Chappell, Dan Boyer, Matt Sleeman,
Erik Shait, Tim Barrit, Spencer Baker, Jeff Spencer
Absent: Steve Locke, Brad Datillio, Jason Morin
1) Welcome & Introductions 2) Additions, deletions, or changes to agenda - None 3) Approve prior meeting minutes from the July 11, 2023 PAC Meeting – Meeting minutes were approved.
4) SEI review of Q3 Net Performance Report.
Discuss performance and status of asset allocation- Dan Cappell
Overview of Fixed Income Investment-Dan Cappell
Executive Summary: It is unlikely the central bank will begin cutting rates before the
second half of 2024. There is a reasonable probability of a recession in 2024
Portfolio Perspectives: Q3 2023 had a negative return of -2.44% driven by both negative
equity returns across all geographies and market caps.
Fixed Income 101: Benefits of fixed income include diversification, income and security.
Fixed income security is an investment that provides a return in the form of fixed periodic
payments and eventual return of principal at maturity. Reviewed bond ratings and risks with bonds. Also reviewed duration, credit spreads, the dynamics of credit spreads and reinvestment risk.
Market performance overview: Markets gave up some ground in the 3rd quarter.
Commodities were the only notable outperformer despite a sharp move higher in real
interest rates.
Portfolio Review: Reviewed the Investment compliance verification for September 20,
2023. Should we consider cash investments such as CDs versus a general investment
portfolio? Dan discussed over a longer period of time the reinvestment risk would not
make sense. The committee reviewed the portfolio summary and annualized investment
returns, and institutional investment strategies.
Overall a challenging quarter.
5) South Burlington pension plan overview– Erik Schait, Newport Group
Year end is being reviewed, the statements will be distributed and estimate of the next
years contribution. Final copies will be received by Friday.
6) Other business 7) Next scheduled meeting- Tuesday January16, 2024, at 2:00 p.m.
8) Adjourn – meeting adjourned at 3:20 p.m.