HomeMy WebLinkAboutMinutes - Pension Advisory Committee - 04/17/2018Pension Advisory Commi ee (PAC)
Minutes
17 April 2018
The South Burlington Pension Advisory Commi ee held its quarterly mee ng on Tuesday, April 17, 2018, 2:00 pm at City
Hall.
Members present: T. Hubbard, Deputy City Manager; T. Gregory, City Hall/DPW; B. Da lio, Fire Department; D. Boyer,
Police Department; D. Kinville, City Clerk; S. Baker, Appointed Ci zen. From SEI, Pat Blizzard
Minutes and Agenda
Minutes were not present from the January mee ng, and will presented at next mee ng.
There were no changes to the agenda.
Spencer Baker was appointed to record minutes.
SEI Review of April 17, 2018, Net Performance Report
PB reviewed the 1st quarter of 2018. Por olio value 3/31/2018 was $33,187,713. Net return was nega ve 0.28% a er
fees. Net return for fiscal YTD (9 months) was 7.34%; outperforming the index. SEI is not recommending any changes in
our current investment strategy.
Investment Notes
Vola lity spike in February affected prices nega vely.
Posi ve factors:
Raising our investments in emerging markets increased our return.
GDP growth for most countries across the globe is posi ve.
Corporate tax cut is very advantageous for profitable companies.
Reduced unemployment rate
SEI is s ll expec ng growth in equi es.
SEI Dynamic Asset Alloca on Fund is nega ve, but so is the fixed income fund from which the money was transferred.
SEI expects 7 – 9% return for Core Proper es .
The most recent actuarial report can be seen on the City web page.
All 24 former employees who have le City employment and have less than $25,000 in the Plan have been contacted and
given three choices: take their money now; leave their money in the Plan; or postpone their decision. There is no fee to
take their money now, but there will be a fee if they withdraw it in the future. To date 3 employees have responded; all
reques ng their money now.
Tim Barri has been appointed by Council to join the PAC and will be at the next mee ng.
We are approaching our 5th year with SEI. Next mee ng we will discuss a recommenda on to Council whether to send
out RFP’s to poten al investment managers or con nue with SEI. Council will already be looking at banking, audi ng and
actuarial reviews this year.
Next regular mee ng will be Tuesday, July 24, at 2:00 pm.
Mee ng adjourned 2:58 PM. Spencer Baker