Board of Trustee Minutes
CHARTER TOWNSHIP OF BLOOMFIELD
BOARD OF TRUSTEES
Study Session
June 25, 2008
PRESENT: Barnett, Buckley, Devine, Jamian, Payne, Roncelli,
Savoie
Also present, Ray Perkins, Finance Director, Jason Theis,
Deputy Finance Director, Edward and Wally Schwartz, Schwartz
and Co., Inc., Matthew Whitty and Andrew Bearre, Schwartz and
Co., Inc.
ABSENT: None
DEFINED BENEFIT PENSION PORTFOLIO:
As of the end of the third quarter last year, the
pension plan had $31,199,879 in assets.
As of May 31, 2008, assets totaled $21,242,815.
On December 28, 2007, $10,275,931 was moved from equity
assets to fixed income, which will be used to fund the
guaranteed annuities for 2007 retirees.
On March 28, 2008, a contribution of $1,915,321 was
made to the equity portion of the portfolio.
Compared to the S&P, the overall portfolio has performed
well with a positive return of 8.5 percent since its
inception. Since the beginning of 2008, the portfolio has had
a negative return of 2.5 percent, which is still a better
performance than the S&P.
Benchmarks were reviewed showing that the portfolio has
out-performed them based on 1, 3, 5 and 10-year projections.
And the portfolio’s overall level of risk, as compared to the
benchmarks, remains within very acceptable parameters.
Treasurer Devine noted that in 25 – 30 years funding will
switch from defined benefit to defined contribution and this
plan will be phased out – only fixed assets and the stock
portfolio will remain.
Schwartz asked the Board to approve the following
reallocation of equity assets:
Large Cap Funds –
Snow Capital Opportunity - Increase from $0 to $500,000
Davis NY Venture - Decrease from $2,230,239 to $1,530,239
Sentinel Common Stock - Increase from $1,153,779 to
$1,553,779
Oppenheimer Equity - Decrease from $997,040 to $0
Fidelity Advisor New Insights Increase from $0 to
$1,100,000
Mid Cap Funds –
Fidelity Advisor Mid Cap II - Decrease from $1,820,528 to
$1,560,333 (this amount will be moved to Large Cap Funds for a
healthier balance)
Small Cap Funds –
Allianz NFJ Small Cap Value Increase from $0 to $1,000,000
DWS Dreman Small Value Decrease from $1,520,661 to
$1,100,000
Lord Abbett Developing Growth Decrease from $1,721,520 to
$1,100,000
Foreign Funds –
No adjustments due to the current diversified allocations
MOTION by Jamian and SUPPORT by Buckley to APPROVE the
Reallocation of the Defined Benefit Pension Portfolio as
Recommended by Schwartz and Co.
Ayes – Unanimous
CONSTRUCTION BOND PROCEEDS INVESTMENT PORTFOLIO
RECOMMENDATION:
Gregory J. Schwartz and Co. has invested the bond proceeds
from the Capital Building Program. When the money is needed
for construction bills, they are transferred to the Township’s
Operating Account.
Since the portfolio’s inception on November 7, 2007, it has
had a net return of 2.6 percent and $1,115,624 worth of
disbursements for bills. This amount will rise significantly
as construction increases.
The investments for this portfolio have been highly
conservative, but the return is very competitive and on target
with projections.
Meeting adjourned at 11:35 a.m.
__________________________
JANET M. RONCELLI, CMC
TOWNSHIP CLERK
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