Approved Minutes
May 20, 2010
CALL TO ORDER: A meeting of the Potter County Retirement Board was called to order at 11:20 am, Thursday, May 20, 2010, in the Commissioners Conference Room. Present were all five board members: Commissioners Doug Morley, Paul Heimel and Susan Kefover, Chief Clerk Todd Brown, Treasurer Krista Miller. Also present were Jeff Davidek, C.
ROLL CALL: Commissioner Doug Morley, present; Commissioner Susan Kefover, present; Commissioner Paul Heimel, present; Treasurer Miller, present; Chief Clerk Todd Brown, present.
MINUTES – 2/25 /10: Commissioner Heimel moved to approve. Commissioner Kefover seconded. Roll call: Commissioner Morley, yes; Commissioner Heimel, yes; Commissioner Kefover, yes; Treasurer Miller, yes; Chief Clerk Brown, yes.
NEW BUSINESS
· FIRST QUARTER 2010 EMPLOYEES’ RETIREMENT FUND REPORT – Jeff Davidek, C.S. McKee, Fund Manager
Mr. Davidek reported that the fund balance stood at $9,579,705 as of March 31, 2010, compared to $9,236,071 on Dec. 31, 2009. Growth of 3.74 percent for the first quarter of 2010 was encouraging and slightly higher than the 3.56 percent for the S&P 500, EAFE and BC Aggregate Total Index.
He said the year 2010 has seen an increased in the economic rally that was evident in 2009, but there are several “headwinds” identified by C. S. McKee. Business spending, Gross Daily Product growth and job gains are positive trends, but a stronger U.S. dollar value and weaker euro portend market volatility. The
Mr. Davidek said C. S. McKee analysts have been studying the impact of the BP oil spill off the Gulf Coast and at this time have concluded that investment funds such as the Potter County Employees’ Retirement Fund should not sell off holdings in a BP contracting partner, Transocean, as liability is expected to be borne by BP, rather then Transocean. He also reminded Retirement Board members that they have the option of instructing C. S. McKee to change investments of the fund balance based on issues of social responsibility or personal preference. At the same time, Mr. Davidek emphasized that C. S. McKee has an impressive track record and remains committed to a conservative, long-range investment strategy to achieve the fund’s growth goals of 7.5 percent annually.
He spoke in detail about C. S. McKee’s assessment of investment opportunities in health care suppliers and providers, energy firms, international companies, as well as C. S. McKee’s Aggregate Fixed Income investment decisions and strategies.
Mr. Davidek fielded questions from Retirement Board members. Asked for a forecast of second quarter 2010 results, he replied that April numbers were encouraging, while May has been disappointing. He also said that board members can obtain daily reports of the fund’s status by contact C.S. McKee.
ADJOURNMENT: Commissioner Kefover moved to adjourn. Chief Clerk Brown seconded. All in favor. The meeting was adjourned at 1:05 pm.
Prepared by Paul W. Heimel
