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Home My WebLink About12/14/2023 - 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 DECEMBER 14, 2023 11:00 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 November 9, 2023 3. Plan Participant Updates (Amber Fluke) 4. Review Investment Report (Adam Halvorson) 5. Investment Manager Next Steps (Randy Bailey & Jenny Lopez Filkins) 6. Other Business 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 NOVEMBER 9, 2023 11:30 AM Committee Members Present: Clark Mapes, Chair Randy Bailey, Vice Chair Del Bernhardt Jackie Darner John Unger Ralph Zentz Members Absent; Jackie Darner Others Present: Blaine Dunn Adam Halvorson Amber Fluke Ryan Malarky Carolyn Koontz ___________________________________________________________________ Meeting called to order at 11:35 am 1. Citizen Participation and Plan Member Comments - none noted. 2. Consider Approving the Minutes from the Meeting of October 12, 2023 Randy Bailey made a motion to approve the minutes as presented. Del Bernhardt seconded the motion. Approval confirmed via roll call; Clark Mapes, Randy Bailey, Del Bernhardt, and John Unger. 3. Plan Participant Updates (Amber Fluke) 1 member to start their benefits this month (November 2023). Another member is planning to start their benefits in January 2024. 2 4. Review Investment Report (Adam Halvorson) 3 5. Investment Manager Next Steps (Blaine Dunn) Blaine Dunn – This would add a co-fiduciary aspect to the plan. Someone else looking over the plan, investment policy development and compliance, reviewing diverse asset allocation, legal compliance and strategic planning. There are some asset types we don’t have the capability to buy into but would have with an investment manager. They would be able to provide reporting on a more regular basis and provide annual fiduciary training for the committee members. The city is not registered as an investment advisor or manager with FINRA (Financial Industry Regulatory Authority). The savings in fees on the mutual funds should cover any expense. Purchasing is evaluating whether we would need to issue an RFP or if we could leverage the contract we have with Innovest and services they currently provide to the other city pension programs. John Unger; Would it be possible to review the current contract with Innovest? Blaine Dunn; Yes, if Purchasing decides we can add to their current contract. 4 John Unger; Is there any liability insurance covering the current committee as fiduciaries? Ryan Malarky will check into his and follow up. Ralph Zentz made a motion to direct staff to pursue bringing on an investment manager for the GERP. John Unger seconded the motion. Approval confirmed via roll call; Clark Mapes, Randy Bailey, Del Bernhardt, Ralph Zentz and John Unger. 6. Other Business Meeting adjourned at 12:10 pm Clark Mapes, Chair Carolyn Koontz, Staff Liaison General Employees' Retirement Plan Return Analysis November 30, 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 2.5%5 year T-Note 4.1% -1.5%15,227,537.88 32%Box # GERP Mutual Funds: Fidelity Contrafund 34.0%S&P 500 Growth 23.8%10.2%2,359,626.13 4.9%4 FCNTX Large Growth 3 Fidelity Balanced 16.8%Morningstar Mod Tgt Alloc 14.1%2.7%1,518,015.27 3.2%5 FBALX Large Growth (Category: Mod. Allocation)3 Fidelity Mid-cap Stock 3.6%S&P 400 Mid Cap 5.5%-1.9%1,903,525.29 4.0%4 FMCSX Medium Blend 5 Fidelity Total Market Index 19.7%Dow Jones Total Stock 17.9%1.8%1,737,328.19 3.6%3 FSKAX Large Blend 2 Fidelity Low Priced Stock 6.9%Russell Midcap Value Index 2.6%4.3%2,707,908.60 5.6%5 FLPSX Medium Value 4 Fidelity Value Discovery 1.3%Russell 1000 Value Index 3.3%-2.0%1,459,641.13 3.0%4 FVDFX Large Value 1 Primecap Odyssey Stock 14.5%S&P 500 Index 19.0%-4.5%1,488,355.76 3.1%3 POSKX Large Blend 2 USAA NASDAQ 100 Index 46.3%NASDAQ 100 Index 45.8%0.6%2,519,458.63 5.2%5 USNQX Large Growth 3 Vanguard 500 Index 20.8%S&P 500 Index 19.0%1.8%3,000,849.23 6.2%5 VFIAX Large Blend 2 Vanguard Growth Index 40.7%S&P 500 Growth 23.8%16.9%2,453,245.61 5.1%4 VIGAX Large Growth 3 Vanguard Mid Cap Index 8.3%S&P 400 Mid Cap 5.5%2.8%2,194,678.58 4.6%4 VIMAX Medium Blend 5 Domestic Mutual Funds 20.8%17.2% 3.6%23,342,632.41 48%3.1 Vanguard Tot International Index 9.9%MSCI ACWI ex. USA 7.3%2.6%2,428,667.57 5.0%3 VTIAX Large Blend 2 TRP International STK 10.9%MSCI World Ex. USA 8.9%1.9%2,494,091.14 5.2%3 PRITX Large Growth 3 TRP New Asia -2.2%MSCI Asia Ex. Japan -1.8%-0.4%2,066,397.78 4.3%3 PRASX Large Blend 2 International Funds 6.7%5.2% 1.5%6,989,156.48 15%2.4 Total Mutual Funds 17.6%14.5%30,331,788.90 63%2.9 Fidelity Enhanced Mid Cap ETF 7.5%5.5% 2.0%2,597,620.26 5.4%3 FMDE Total Exchange Traded Funds 7.5%5.5% 2.0%2,597,620.26 5% MS Equity Style Box Value Blend Growth Large 1 2 3 Total Portfolio *18.3%48,156,947.04 100%Med 4 5 6 Small 7 8 9 * The total portfolio yield is adjusted for YTD cash flows, Purchases, and Sales. Morningstar Style Report 2311.xlsx GERP Investment Policy Analysis November 30, 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 1,518,015$ 3.2%Basic Materials 1,095,261$ 3.3% Large Value 1,459,641$ 3.0%Consumer Cyclical 3,967,007$ 12.0% Large Blend 6,226,533$ 12.9%Financial Services 4,223,109$ 12.8% Large Growth 7,332,330$ 15.2%Real Estate 828,349$ 2.5% Medium Blend 4,098,204$ 8.5%Communications Services 2,732,858$ 8.3% Medium Value 2,707,909$ 5.6%Energy 1,441,389$ 4.4% Medium Growth -$ 0.0%Industrials 3,427,272$ 10.4% Small Blend -$ 0.0%Technology 8,164,395$ 24.8% Exchange Traded Funds 2,597,620$ 5.4% Consumer Defensive 1,990,735$ 6.0% Sub-total Domestic 25,940,253$ 54%35%45%55%Healthcare 4,175,290$ 12.7% Utilities 883,743$ 2.7% International Fund Category ( 7.5% Max)Other (includes Cash & Bonds)-$ 0.0% Large Blend 2,428,668$ 5.0%Total Equity Portfolio 32,929,409$ 100.0% Large Growth 2,494,091$ 5.2% Pacific/Asia - Lg Growth 2,066,398$ 4.3% Sub-total International 6,989,156$ 15%5%15%25% Total Equity Portfolio 32,929,409$ Fixed Income 15,227,538$ 32%30%40%50% Bond Mutual Funds -$ 0.0%0%N/A 20% Total Portfolio 48,156,947$ 100.0%100.0% Strategic Asset Allocation Report 2311.xlsx