City of Galesburg Fire Pension Fund Board of Trustees met May 6.
Here is the minutes provided by the board:
Call to order by President Jim Pendergast at 9:00 a.m.
Present: Kelli Bennewitz, Jim Pendergast, John Seitz, and Mike Whitson. Absent: Marv Dahlberg. Others present: Kelly Weller, Great Lakes Advisors.
Kelly Weller reviewed the pension fund’s portfolio showing an ending market value of $22,579,260 as of March 31, 2019, representing a loss of $609,640 for the period. The fund is showing 43.3% fixed income, 54.2% equity investments and 2.5% cash. Other items noted:
● Equities made a strong comeback in the first quarter as the Fed signaled no additional rate hikes in 2019. The U.S. led the way, with the S&P 500 Index increasing 13.7%; international and emerging market equities were also in the black, with the MSCI EAFE and MSCI Emerging Markets Indexes both up 10%.
● For the quarter ending, the equity allocation was at 54.2%, slightly overweight to target. Equities gained 13.4% and performed better than the broader global equity market as measured by the MSCI ACWI Index at 12.2%. The diversifying international developed, emerging market equity, and REIT mutual funds also gained; U.S. REITS were the highest performer for the quarter, up +17%. The fixed income allocation at 43.3% was slightly under target; while fixed income gained 3%. Tightening credit spreads in corporate and high yield bonds were additive to near term performance. TCW Emerging Markets Income Fund was the top fixed income performer, up 7.7%.
● With the U.S. advancing into the late stage of its expansionary economic cycle, they remind investors of the importance of diversification given the more pronounced risks and volatility historically associated with this stage. There continues to be factors which heighten the degree of uncertainty about the future trajectory of global economic growth, as well as the longevity of the current expansion.
Bennewitz reported that Jim Pendergast won the Fire Pension Fund election by a 26-0 vote.
John Seitz moved, seconded by Mike Whitson, to approve the following slate of officers:
Jim Pendergast - President John Seitz - Vice President Kelli Bennewitz - Secretary
The motion carried.
John Seitz moved, seconded by Jim Pendergast, to approve the minutes from the February 4, 2019, meeting. The motion carried.
The monthly account summaries were tabled.
Next meeting will be held August 5, 2019
The unaudited Annual Statement for the Department of Insurance was reviewed and received.
Mike Whitson moved, seconded by Kelli Bennewitz, to approve the retirement of Thomas Baughman as of November 30, 2018. The motion carried.
Public Comment – None.
There being no further business, the meeting adjourned at 10:00 a.m.