The URL can be used to link to this page

Home My WebLink About11/09/2023 - Retirement Committee - Summary Agenda - Regular Meeting General Employees Retirement Committee 215 N. Mason 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6788 970.221.6782 - fax fcgov.com GENERAL EMPLOYEES’ RETIREMENT COMMITTEE AGENDA FOR NOVEMBER 9, 2023 11:30 am ZOOM MEETING https://us02web.zoom.us/j/8140111859 Meeting ID: 814 011 1859 1. Citizen Participation and Plan Member Comments 2. Consider Approving the Minutes from the Meeting of October 12, 2023 3. Plan Participant Updates (Amber Fluke) 4. Review Investment Report (Adam Halvorson) 5. Investment Manager Next Steps (Blaine Dunn) General Employees Retirement Committee 215 N. Mason 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6788 970.221.6782 - fax fcgov.com GENERAL EMPLOYEES’ RETIREMENT COMMITTEE ZOOM MEETING MINUTES OCTOBER 12, 2023 11:00 AM Committee Members Present: Clark Mapes, Chair Randy Bailey, Vice Chair Del Bernhardt Jackie Darner John Unger Ralph Zentz Others Present: Blaine Dunn Adam Halvorson LeeAnna Vargas Joel Stewart Jenny Lopez Filkins Carolyn Koontz ___________________________________________________________________ Meeting called to order at 11 am 1. Citizen Participation and Plan Member Comments - none noted. 2. Consider Approving the Minutes from the Meeting of July 13 ,2023 Randy Bailey made a motion to approve the minutes as presented. John Unger seconded the motion. Approval confirmed via roll call; Clark Mapes, Randy Bailey, Del Bernhardt, Jackie Darner, and John Unger. 3. Plan Participant Updates (LeeAnna Vargas) 1 member began annuity payment in August. 1 member took a (rollout) lump sum in August. 1 member will start payments this month. 1 member will be retiring in November. 2 members are considering retiring in 2024. 1 terminated employee reached out and is eligible. 2 4. Review Investment Report (Adam Halvorson) 3 4 5. Review Draft 2024 GERC Work Plan Del Bernhardt made a motion to accept the 2024 GERC Work Plan as presented. Randy Bailey seconded the motion. Approval of the 2024 GERC Work Plan confirmed via roll call; Clark Mapes, Randy Bailey, Del Bernhardt, Jackie Darner, John Unger, and Ralph Zentz. The approved 2024 GERC Work Plan will be posted on the GERC website; https://www.fcgov.com/cityclerk/boards/retirement 6. Other Business Jenny Lopez Filkins; 5 In the past, we have had some GERP members who made an arrangement with their managers to retire and start taking their GERP benefit and then to come back to work at the city as an employee or contractor. There are a few legals questions that raises, and Jenny would like to consult with outside counsel to ask for an update to the previous opinion which was issued approximately 20 years ago. This would include any possible ramifications with IRS rules and regulations. Jenny is asking for authorization to incur the related legal expense to obtain this guidance which should be less than $5K. Jenny to follow up with a Confidential / Attorney Client Privilege memo to the committee outlining the previous opinion from 20 years ago and ramifications. Ralph Zentz made a motion to authorize Jenny to seek that opinion and incur the associated expense up to $5K. If the amount is significantly over $5K, Jenny is to come back to the committee for additional discussion. John Unger seconded the motion. Approval confirmed via roll call; Clark Mapes, Randy Bailey, Del Bernhardt, Jackie Darner, John Unger, and Ralph Zentz. Blaine Dunn; 1) Share with the committee that he will be leaving the city at the end of November and moving with his family to London. His wife was offered an opportunity to move to London. I would like to make a recommendation to the committee that they consider bringing an investment advisor on board to handle investments, reporting, etc. Since the city is not a registered investment advisor or broker, we pay quite a bit more in fees for investments than we would if an investment manager was handling this. An investment manager could also offer more diversification in our plan investments and save some costs. If the committee is open to this, I can start researching and working with procurement to see what this might look like. The committee supports getting more information at the November 9th GERC meeting. The committee can then decide on next steps. Meeting adjourned at 11:42 am Clark Mapes, Chair Carolyn Koontz, Staff Liaison General Employees' Retirement Plan Return Analysis October 31, 2023 Return Return YTD Performance Market Value MV % of MS Plan Portfolio YTD Benchmark YTD vs Benchmark (MV)Total MS Rating Chg Ticker Style Cash & Fixed Income 2.4%5 year T-Note 4.1% -1.6%15,471,725.20 34%Box # GERP Mutual Funds: Fidelity Contrafund 23.9%S&P 500 Growth 14.1%9.8%2,180,844.18 4.8%4 FCNTX Large Growth 3 Fidelity Balanced 8.6%Morningstar Mod Tgt Alloc 4.5%4.2%1,411,783.22 3.1%5 FBALX Large Growth (Category: Mod. Allocation)3 Fidelity Mid-cap Enhanced Index -2.3%S&P 400 Mid Cap -2.6%0.3%2,335,572.83 5.1%4 FMEIX Medium Blend 5 Fidelity Mid-cap Stock -3.7%S&P 400 Mid Cap -2.6%-1.0%1,770,194.88 3.9%4 FMCSX Medium Blend 5 Fidelity Total Market Index 9.4%Dow Jones Total Stock 8.0%1.4%1,587,795.05 3.5%3 FSKAX Large Blend 2 Fidelity Low Priced Stock 0.3%Russell Midcap Value Index -6.0%6.3%2,540,402.59 5.6%5 FLPSX Medium Value 4 Fidelity Value Discovery -3.5%Russell 1000 Value Index -3.6%0.1%1,389,871.05 3.0%4 FVDFX Large Value 1 Primecap Odyssey Stock 5.1%S&P 500 Index 9.2%-4.1%1,366,973.71 3.0%3 POSKX Large Blend 2 USAA NASDAQ 100 Index 32.1%NASDAQ 100 Index 31.7%0.4%2,274,468.52 5.0%5 USNQX Large Growth 3 Vanguard 500 Index 10.7%S&P 500 Index 9.2%1.4%2,749,837.61 6.0%5 VFIAX Large Blend 2 Vanguard Growth Index 26.1%S&P 500 Growth 14.1%12.0%2,197,100.72 4.8%4 VIGAX Large Growth 3 Vanguard Mid Cap Index -1.6%S&P 400 Mid Cap -2.6%1.0%1,995,014.71 4.4%4 VIMAX Medium Blend 5 Domestic Mutual Funds 9.5%6.5% 3.0%23,799,859.07 52%3.3 Vanguard Tot International Index 1.3%MSCI ACWI ex. USA -1.4%2.7%2,238,864.82 4.9%3 VTIAX Large Blend 2 TRP International STK 1.2%MSCI World Ex. USA -0.3%1.4%2,275,739.49 5.0%3 PRITX Large Growth 3 TRP New Asia -8.0%MSCI Asia Ex. Japan -8.2%0.2%1,944,689.33 4.3%3 PRASX Large Blend 2 International Funds -1.5%-3.0% 1.5%6,459,293.64 14%2.4 Total Mutual Funds 7.2%4.4%30,259,152.71 66%3.1 MS Equity Style Box Value Blend Growth Large 1 2 3 Total Portfolio *12.0%45,730,877.91 100%Med 4 5 6 Small 7 8 9 * The total portfolio yield is adjusted for YTD cash flows, Purchases, and Sales. Morningstar Style Report 2310.xlsx GERP Investment Policy Analysis October 31, 2023 Investment Policy Analysis Fund Category Allocation Equity Sector Weightings Category %Sector % vs Market vs Total Portfolio Market Equity Portfolio Domestic Fund Category Value ( 20% Max) Lower Limit Target Upper Limit Value ( 25% Max) Moderate Allocation 1,411,783$ 3.1%Basic Materials 1,068,387$ 3.5% Large Value 1,389,871$ 3.0%Consumer Cyclical 3,689,806$ 12.2% Large Blend 5,704,606$ 12.5%Financial Services 3,844,277$ 12.7% Large Growth 6,652,413$ 14.5%Real Estate 842,007$ 2.8% Medium Blend 6,100,782$ 13.3%Communications Services 2,371,320$ 7.8% Medium Value 2,540,403$ 5.6%Energy 1,324,865$ 4.4% Medium Growth -$ 0.0%Industrials 3,317,144$ 11.0% Small Blend -$ 0.0%Technology 7,348,883$ 24.3% Consumer Defensive 1,765,110$ 5.8% Sub-total Domestic 23,799,859$ 52%35%45%55%Healthcare 3,837,499$ 12.7% Utilities 849,856$ 2.8% International Fund Category ( 7.5% Max)Other (includes Cash & Bonds)-$ 0.0% Large Blend 2,238,865$ 4.9%Total Equity Portfolio 30,259,153$ 100.0% Large Growth 2,275,739$ 5.0% Pacific/Asia - Lg Growth 1,944,689$ 4.3% Sub-total International 6,459,294$ 14%5%15%25% Total Equity Portfolio 30,259,153$ Fixed Income 15,471,725$ 34%30%40%50% Bond Mutual Funds -$ 0.0%0%N/A 20% Total Portfolio 45,730,878$ 100.0%100.0% Strategic Asset Allocation Report 2310.xlsx