Minutes - 05/05/2014 - Police Pension Fund BoardVILLAGE OF OAK BROOK
BOARD OF TRUSTEES OF THE POLICE PENSION FUND - Minutes
May 5, 2014
UNOFFICIAL UNTIL APPROVED AS WRITTEN √
OR AS AMENDED BY BOARD OF TRUSTEES OF THE
POLICE PENSION FUND ON May 19, 2014
1. SWEARING IN OF NEWLY APPOINTED/ELECTED TRUSTEES
2. CALL TO ORDER:
The Special Meeting of May 5, 2014 of the Board of Trustees of the Oak Brook Police Pension Fund was
called to order by President Vel Torlo at 6:07 p.m. at the Oak Brook Bath and Tennis Clubhouse, 800 Oak
Brook Road, Oak Brook, Illinois.
3. ROLL CALL:
The roll was called with the following persons
PRESENT: President Vel Torlo, Vice President Alan Feldman, Secretary Edward Caspers, Trustee Hitesh
Patel, Trustee Benjamin Kadolph
ABSENT: None
IN ATTENDANCE: Todd Schroeder from Lauterbach & Amen, Bob Thompson, Spencer Klein and Terese
Krafcheck of MB Financial, Courtney Cervantes and Jeff Gabrione of Lowery Asset Consulting, Pension
Clerk Rose Kane, and numerous active and retired pension members.
4. APPROVAL OF MINUTES:
a. Approval of Regular Meeting Minutes of April 21, 2014
Motion by Secretary Caspers, seconded by Trustee Patel, to approve the Minutes of the April 21,
2014 Regular Board Meeting as amended. VOICE VOTE: Motion carried.
5. PENDING BUSINESS:
a. Approval of Investment Transactions for First Quarter, 2014
Jeff Gabrione of Lowery Asset Consulting gave a brief overview of the First Quarter and he stated that they
were optimistic that things would continue to improve, especially in the European markets. Courtney
Cervantes of Lowery Asset Consulting updated the Board on activity up to April 30, 2014.
6. NEW BUSINESS:
a. Discussion regarding proxy voting, manager changes and reallocation of assets
Jeff Gabrione discussed the performance of the managers and stated that for most of the managers they
are very happy. He referred to the poor performance of DF Dent, but that the performance is not outside of
what they have seen in the past. He then suggested that Contravisory could come out of the portfolio and
then discussed Ivy Asset Strategy and Pimco. Mr. Gabrione referred to page 9 of the Special Meeting
handout, specifically the impact of inflation and domestic/foreign recession. He suggested that the Board
might want to consider a little more protection in the rising interest rate/inflationary environment, and take
what is in Ivy Asset and put it into an MLP Strategy, the infrastructure that supports the oil and gas industry.
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 1 of 2 May 5, 2014
Motion by Secretary Caspers, seconded by Trustee Kadolph, to approve the Investment
Transactions for First Quarter, 2014.
ROLL CALL:
Ayes: 5 – Vice President Feldman, Secretary Caspers, Trustee Patel, Trustee Kadolph, President Torlo
Nays: 0 – None
Absent: 0 – None. Motion carried
Courtney Cervantes stated that there is an issue with ownership and Ridgeworth is trying to pull away and
go private. She stated that they advise saying yes to proxy voting. Brief discussion with both Lowery and
MB Financial representatives ensued regarding the issues and whether there is any downside.
Motion by Trustee Patel, seconded by Secretary Caspers, to support Lowery’s decision in favor of
Ridgeworth, as deemed appropriate.
ROLL CALL:
Ayes: 5 – Secretary Caspers, Trustee Patel, Trustee Kadolph, President Torlo, Vice President Feldman
Nays: 0 – None
Absent: 0 – None. Motion carried
Motion by Trustee Kadolph, seconded by Secretary Caspers, to recess for dinner at 6:33 p.m.
VOICE VOTE. Motion carried.
The next two agenda items were presented to the assembly during and after dinner.
b. State of the investments by Lowery Asset Consulting and MB Financial
c. Actuarial presentation by Lauterbach & Amen
Motion by Trustee Patel, seconded by Secretary Caspers, to reconvene the meeting at 7:42 p.m.
VOICE VOTE. Motion carried.
7. ADJOURNMENT:
Motion by Secretary Caspers, seconded by Trustee Patel, to adjourn the Special Meeting of the
Board of Trustees of the Police Pension Fund at 7:42 p.m. VOICE VOTE: Motion carried.
ATTEST:
Edward Caspers /s/
Edward Caspers, Secretary
Board of Trustees of the Police Pension Fund
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 2 of 2 May 5, 2014