Board of Trustee Minutes
CHARTER TOWNSHIP OF BLOOMFIELD
BOARD OF TRUSTEES
Study Session
October 20, 2006
PRESENT: Payne, Devine, Stefanes, Buckley, Barnett
Also present, Ray Perkins, Finance Director, Edward and
Wally Schwartz, Schwartz and Co., Inc., Matthew Wallace, Great
West Retirement Services
ABSENT: Roncelli, Savoie
PENSION PLAN:
This is a quarterly review (June through September 2006) of
the Township’s retirement plan investments as requested by the
Board of Trustees.
The dominant factor in this plan discussion is asset
allocation. The most important factor related to the success
of the plan is asset allocation.
Schwartz and Co. is responsible for managing the equity
portion of the plan portfolio, paying particularly close
attention to risk versus return ratios. The overall investment
philosophy is conservative. Presently about 25% of the plans
total assets are invested in stock equity funds.
This portfolio earned a positive 3.0 percent return during
the most recent quarter ended September 30, 2006. The overall
market in June and July was weak. August and September were
better, and October was strong. In fact, as of Friday’s
closing, October 27, 2006, October returns were up
approximately 7.5%.
Generally, there are three cycles: a strong "up" market, a
strong "down" market or flat. In a strong "up" market,
Schwartz and Co. will tend to proceed more aggressively. In a
"down" or flat market, they will tread more cautiously. The
market trend most recently has been strong.
The current investment strategy of Schwartz and Co., for
the Township, has been to invest most plan assets in large and
mid cap stock funds. There has also been some exposure to
small cap funds, however we are backing off this category
somewhat as these stocks appear near the end of a very solid
run.
The major focus of the investment strategy is to keep
volatility low by investing in very diverse group of domestic
and international stock funds. For the most part, this plan is
satisfactorily on track and Schwartz and Co. will frequently
be in touch with Dan Devine, Township Treasurer and Ray
Perkins, Finance Director, to ensure that there is regular
communication with the Township.
There was discussion as to whether these meetings could be
just as informative being held semi-annually or annually
instead of quarterly. It was decided that changing the
frequency of these meetings would need to be discussed at a
Board meeting with a motion to approve the change.
Meeting adjourned at 10:58 a.m.
__________________________
JANET RONCELLI
TOWNSHIP CLERK
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Bloomfield Hills, MI 48303-0489
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