City of Maitland

Discussion Item
Mar 14, 2018

AndCo Consulting, Jack Evatt, Investment Consultant


Department:Police Officers & Firefighters Pension Trust Fund BoardSponsors:

Financial Impact

Ord and Res Only

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Meeting History

Mar 14, 2018  Police Officers & Firefighters Pension Trust Fund Board Regular
draft Draft

i. Quarterly update as of December 31, 2017.

1. Jack Evatt provided an overview of the market stating returns had been positive across major equity and fixed income indices for the quarter. International equity posted considerable gains and interest rates continued to be on the rise.

2. Market value as of December 31, 2017, was $31,099,565, and as of February 28, 2018, was $30,933,695.

3. Returns for the month of February were -2.46%, underperforming the policy benchmark of -2.39% by -0.07%. Fiscal YTD returns were 4.45%, outperforming the benchmark of 4.11%. Trailing returns for the 1, 3, and 5 year periods were 12.43%, 6.83%, and 8.84%.

ii. Analysis of infrastructure and small cap managers.

1. Jack Evatt stated the infrastructure space was new for the plan and the challenge with these types of funds was that earnings don’t go up as fast as you want, but they go down faster than you want. Jack commented the space was similar in nature to real estate and would provide an alternate investment to PIMCO. Minimums are usually high so the plan’s ability to get in would be a little difficult given the $1.5MM allocation available. Phillip Senderowitz recommended holding off on the discussion of infrastructure until David O’Connor could be present.

2. Jack reviewed small cap equity options commenting it was one of the few places to expect higher returns without a huge increase in risk. Jack stated having some level of active management in this space made sense given the opportunity for these managers to add value over the benchmark.

3. Jack Evatt reviewed the small cap mangers, their fees, and minimum funding requirements, stating these options consistently performed above average with their strategies over a long period of time.

4. Jack recommended taking half of Vanguard to fund the new investment which would give the portfolio half active and half passive in the domestic space.

MOVER:Phillip Senderowitz, Trustee
SECONDER:Ray Link, Trustee
AYES:Charles Van Camp, Kimberly Neisler, Jerry Gray, Jeff Harris, Ray Link, Phillip Senderowitz, David Manuel