Call to Order: The meeting was called to order at 7:15 a.m. in the conference room at Glenview Fire Station 6. On roll call the following were: Present: Village Manager Hileman, Trustee Pat Cuisinier (7:20 am), Trustee Paul Detlefs, Trustee Tom Dvorak, Board President Nick Rusher, (Retired) Board Secretary Phil Schmitt, Finance Director Wiersma, President George Colis, Oxford Bank and Carol Bjankini, Recording Secretary
Absent: None
Minutes: President Rusher called for a review of the minutes of December 4, 2006. President Rusher made a motion to accept the minutes of December 4, 2006 as amended, Trustee Detlefs seconded and the vote was all ayes, no nays and the minutes of December 4, 2006 were accepted.
Other Business: The Board reviewed the Investment Consultant RFP packets received from:
- Raymond James Asset Management Services
- Capital Strategies Group of Wachovia Securities
- Wachovia Securities, LLC – Rockford
- Wachovia Securities, LLC – Chicago
- Standard Valuations, Inc.
- Marquette Associates
- Capital Gains Incorporated
- MB Financial Bank
The Board discussed the criterion in which they plan to use to eliminate firms. After a lengthy discussion regarding everything from cost, resources, pricing, support, experience, references to location, the Board weighed heavily on the consultants fire pension experience. It came down to three firms with multiple references from Chicagoland Fire Departments that utilize these Consultants. Those three firms are:
- Marquette Associates/Douglas Oest
- Wachovia Securities, LLC. – Chicago/Thomas McShane
- Capital Gains Incorporated/Gary Karshna
Village Manager Hileman suggested that a few of the Board members contact some of the Board members from the reference lists provided and obtain insight on their experience and how satisfied they are with their Consultant. President Nick Rusher, Trustee Tom Dvorak and Secretary Phil Schmitt will contact their peers and report their findings to the Board prior to the interviews. Also, Finance Director Wiersma will contact Finance Directors at some of the communities listed as references and share his findings as well.
Mr. George Colis of the Oxford Bank attended this meeting as an advisor to the Board regarding issues and what to look for when hiring an Investment Consultant. Mr. Colis stressed the importance of a "personal fit" with your Advisor. Mr. Colis explained how important it is to have an advisor that is:
- Systematic
- Will monitor the process
- Has knowledge and common sense
- Our department will be of interest to them
- Provide a firm with strong research capabilities
- Can lend their firms research on a Money Manager
- Can assist with the Money Manager
- You have a good feel for the person
Mr. Colis as well as Finance Director Wiersma and Trustee Detlefs discussed the importance of not having a consultant on commission, no “soft dollars,” we do not want someone that would push their own products.
Manager Hileman asked Mr. Colis his thoughts regarding a Money Manager as well as an Advisor. Mr. Colis explained the strong need for both as one can watch over the other. He explained with the separate roles of each you don’t have to worry about a conflict of interest. It’s easier and it is the safest way for a check and balance with your funds.
Trustee Detlefs mentioned a few funds are ready to mature in mid-March. Finance Director Wiersma explained that those funds could roll into a short term investment depending on how quickly the Board wants to get into the market. Finance Director Wiersma stated that the Board might want a "grand strategy" before redeploying. Finance Director Wiersma explained that the Board must decide how much of the fund they want the Consultant to focus on. (i.e. Equity side, cash, Bonds, integrate the assets, etc.)
Manager Hileman asked Mr. Colis his thoughts on potential questions to ask while interviewing a Consultant. Mr. Colis suggested the Board ask about:
- General philosophy
- Risk Tolerance
- Rebalancing
- Re-evaluating
- Philosophy on Allocation
- The process they take to educate their Board
- Their access to research and what database they use
- Does a percentage of your personal income at the firm come from Advisory services?
Trustee Cuisinier also mentioned asking the Consultant what is their approach to a Money Manager.
Meeting Dates: The next meeting has been scheduled for Monday, January 15, 2007, 8:00 am in the conference room at Station 6.
Adjournment: Secretary Phil Schmitt motioned to adjourn, Trustee Tom Dvorak seconded and the vote was all ayes, no nays and the meeting adjourned at 8:10 a.m.
Respectfully Submitted:Carol Bjankini
Recording Secretary
Glenview Firefighters’ Pension Fund