other post-employment benefits trust fund agenda … agenda 0… · december 31, 2016 7....

OTHER POST-EMPLOYMENT BENEFITS

TRUST FUND AGENDA

Las Vegas Metropolitan Police Department

Headquarters Building B – Room 127

400 S. Martin L. King Boulevard

Las Vegas, NV 89106

March 22, 2017, at 10:30 a.m.

All items on this agenda are scheduled for action unless specifically noted otherwise. Items listed on the

agenda may be taken out of order; two or more agenda items for consideration may be combined; and any

item on the agenda may be removed or related discussion may be delayed at any time.

1. Call To Order

2. Public Comments

This Is A Period Devoted To Comments By The General Public About Items On This

Agenda. If You Wish To Speak To The Committee About Items Within Its Jurisdiction,

But Not Appearing On This Agenda, You Must Wait Until The “Citizen Participation”

Period Listed At The End Of This Agenda. Comments Will Be Limited To Three Minutes.

Please Step Up To The Speaker’s Podium, State Which Agenda Item Or Items You Wish

To Comment On, Clearly State Your Name And Address, And Please Spell Your Last

Name For The Record. If Any Member Of The Committee Wishes To Extend The Length

Of A Presentation, This Will Be Done By The Chair Or The Committee By Majority Vote.

3. Approval Of Agenda With The Inclusion Of Any Emergency Items And Deletion Of Any

Items (For Possible Action)

4. Approve The Minutes Of November 21, 2016 (For Possible Action)

5. Approve Filling The Vacancy On The OPEB Trust Fund Committee Due To The Retirement

Of Committee Member Mark Vincent. The Chair Is Nominating The CFO For The City Of

Las Vegas, Gary Ameling (For Possible Action)

6. Informational Item Reporting On Net Assets And Changes In Net Assets For The Period Ended

December 31, 2016

7. Informational Item Reporting On The Quarterly Investment Report From FTN Financial Main

Street Advisors, For The Period Ended December 31, 2016

8. Citizen Participation

A Period Devoted To Comments By The General Public, If Any, And Discussion Of Those

Comments. Comments Are Limited To Three (3) Minutes. No Action May Be Taken Upon

A Matter Raised Under This Item Of The Agenda Until The Matter Itself Has Been

Specifically Included On An Agenda As An Item Upon Which Action Will Be Taken Per

N.R.S. 241.020.2(C)(3)

OPEB Trust Fund Agenda March 22, 2017

9. Next Meeting – June 22, 2017, 2:00 p.m. – Las Vegas Metropolitan Police Department

Headquarters Building B – Conference Center

10. Adjournment Of Meeting

THIS MEETING HAS BEEN PROPERLY NOTICED AND POSTED AT THE FOLLOWING LOCATIONS

Las Vegas Metropolitan Police Headquarters, 400 Martin L. King Boulevard, Principal Location, Building C First Floor

City Hall, 495 South Main Street, First Floor

State Government Office, 555 E Washington Avenue, First Floor

Clark County Government Center, 500 S. Grand Central Parkway, First Floor

Regional Justice Center, 200 Lewis Avenue, First Floor

OTHER POST-EMPLOYMENT BENEFITS TRUST FUND MINUTES

Las Vegas Metropolitan Police Department Headquarters Building B – Room 500

400 S. Martin L. King Boulevard Las Vegas, NV 89106

November 21, 2016, at 9:30 a.m.

Committee Members Present Committee Members Absent Richard Hoggan (Chair) None Jessica Colvin (Vice-Chair) - Telephone Karen Keller – Telephone Mark Vincent - Telephone

Section 1 – Opening 1. Call To Order

Chair Hoggan called the meeting to order at 9:33 a.m.

2. Public CommentsThis Is A Period Devoted To Comments By The General Public About Items On This Agenda. If You Wish To Speak To The Committee About Items Within Its Jurisdiction, But Not Appearing On This Agenda, You Must Wait Until The “Citizen Participation” Period Listed At The End Of This Agenda. Comments Will Be Limited To Three Minutes. Please Step Up To The Speaker’s Podium, State Which Agenda Item Or Items You Wish To Comment On, Clearly State Your Name And Address, And Please Spell Your Last Name For The Record. If Any Member Of The Committee Wishes To Extend The Length Of A Presentation, This Will Be Done By The Chair Or The Committee By Majority Vote. None

3. Approval Of Agenda With The Inclusion Of Any Emergency Items And Deletion OfAny Items (For Possible Action)

Motion: Trustee Vincent moved to approve Vote: Unanimous

4. Approve The Minutes Of September 13, 2016 (For Possible Action)

Motion: Trustee Vincent moved to approve Vote: Unanimous

4

OPEB Trust Fund Agenda Page 2 November 21, 2016

5. Discuss And Approve The Agreement For Professional Services Between LVMPD

OPEB Trust Fund And Eide Bailly, LLP, And Authorize The Chair Or His Designee To Sign Agreement Or Take Other Action As Appropriate (For Possible Action)

LVMPD Accountant, J. Wong, updated the board on the scheduled audit dates: Planning questions, week of January 9th; formal audit, week of January 23rd. Motion: Trustee Vincent moved to approve Vote: Unanimous

6. Discuss And Approve Agreement For Directors and Officers Liability Insurance

Between LVMPD OPEB Trust Fund And Cragin & Pike And Authorize The Chair Or His Designee To Have Agreement Prepared Or Take Other Action As Appropriate (For Possible Action)

The board discussed the insurance options presented by Cragin & Pike. The board members agreed upon the policy with the aggregate limit of five million dollars. In the future, more research will be completed to determine if DNO Insurance could be gained through the County pool for any cost savings. Motion: Trustee Vincent moved to approve pursuing an agreement for

the coverage of five million dollars and authorize the chair to sign the agreement.

Vote: Unanimous

7. Citizen Participation A Period Devoted To Comments By The General Public, If Any, And Discussion Of Those Comments. Comments Are Limited To Three (3) Minutes. No Action May Be Taken Upon A Matter Raised Under This Item Of The Agenda Until The Matter Itself Has Been Specifically Included On An Agenda As An Item Upon Which Action Will Be Taken Per N.R.S. 241.020.2(C)(3) None

8. Adjournment Of Meeting

Chair Hoggan adjourned the meeting at 9:41 a.m. Minutes taken by MA Wilson, PN 4870

12/31/2016 6/30/2016

Additions to net assets attributed to:

Investment Income:

Net appreciation (depreciation) in fair value

Quoted market price 109,525$ 79,829$

Interest and dividends 43,996 40,738

Less Investment Fees (610) (212)

Net Investment Income 152,911 120,355

Total Additions 152,911 120,355

Deductions from net assets attributed to:

Operating Expenses:

Bank Fees 78 34

Quickbooks Software 253

Trust Fiduciary Insurance Premiums 4,365 9,444

Investment Consulting 3,750

Total Deductions 8,193 9,731

Net Increase (Decrease) for the year 144,718 110,624

Net Assets:

Beginning Net Assets Available 4,115,747 4,005,123

Total Net Assets Available 4,260,465$ 4,115,747$

LAS VEGAS METROPOLITAN POLICE DEPARTMENT

OPEB TRUST FUND

STATEMENTS OF CHANGES IN NET ASSETS

FOR THE PERIOD ENDED DECEMBER 31, 2016

6

12/31/2016 6/30/2016

ASSETS

Investments, at fair value:

Clark County Treasurer's Pool 75,552$ 95,998$

RBIF 4,162,838 4,009,481

4,238,390 4,105,479

Other Assets:

Cash (OPEB Checking Account) 22,075 10,268

Total Assets 4,260,465 4,115,747

LIABILITIES

Liabilities:

Total Liabilities: ‐ ‐ Net Assets 4,260,465$ 4,115,747$

LAS VEGAS METROPOLITAN POLICE DEPARTMENT

OPEB TRUST FUND

STATEMENTS OF NET ASSETS

FOR THE PERIOD ENDED DECEMBER 31, 2016

Client Management Team

Rick Phillips President & Chief Investment Officer

702-575-6666

[email protected]

Tonya Dazzio Chief Operating & Compliance Officer

702-575-6592

[email protected]

Greg Balls Portfolio Manager & Analyst

702-575-6655

[email protected]

Christine Wilson Operations Analyst

702-575-6640

[email protected]

Dan Rusk Portfolio Analyst

702-575-6633

[email protected]

December 2016

10655 Park Run Drive Suite 120 | Las Vegas, NV 89144 | Toll Free 888.278.7350 | www.FTNMainStreet.com

Quarterly Investment Report

Las Vegas Metropolitan Police

Department OPEB Trust

4444

7

Portfolio Summary

Sector

Clark County Inv Pool (Fixed Income)

Cash Equivalents - RBIF

U.S. Bonds -RBIF

U.S. Stocks - RBIF

International Stocks - RBIF

Total

Market Value

Book Value

Variance

Total Gain/Loss %

Since Inception

RBIF Allocations

U.S. Equity

International Equity

U.S. Bonds

*Rebalance minimum

Note: First deposit into RBIF was 12/24/15

12/31/2016 Metro OPEB Trust

(20,640.14)

(48,217.35)

90,711.09

17,191.13

75,293.17

1,124,519.03

2,201,820.86

(2,356.19)

8,552.37

Period ChangePrior Qtr Market ValueCurrent Market Value

819,306.53

4,238,130.72

28,136.17

95,933.30

1,172,736.38

2,111,109.77

821,662.72

4,229,578.34

(10,945.04)

Total Asset Allocation

3,975,552.17

262,578.55

6.60%

Cost vs Market Value

25%*

4,238,130.72

49%

21%

Range

19.0%-23.5%

46.5%-54.0%

30%

Target

Inv Pool- 1.8% Cash Eqv-RBIF

0.4%

U.S. Stocks-RBIF 52.0%

Int'l Stocks-RBIF 19.3%

U.S. Bonds-RBIF 26.5%

2

Contribution History to OPEB Trust

Month FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

Jul 0

Aug 0

Sep 0

Oct 0

Nov 0

Dec 650,000 0

Jan 650,000

Feb 650,000

Mar 487,500

Apr 487,500

May 487,500Jun 487,500

Total 3,900,000 0

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2027 Total

3.90 3.90


Fiscal Year Contributions to RBIF - Millions

Fiscal Year Contributions to RBIF

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

$ M

illio

ns

3

Market Recap

Quarterly Return:

Key Points

▪ Week earnings early in the quarter

▪ Election jitters in early November

▪ Business confidence bump due to election

Quarterly Return:

Key Points

▪ Strong manufacturing data

▪ Election surprise

▪ Fed December rate hike

Quarterly Return:

Key Points

▪ Future inflation worries

▪ Trump protectionist policies

▪ Fed December rate hike

Source: Bloomberg, FTN Main Street

(1.04%)

BAML US Treasury Bond Index (Domestic Fixed-Income)

(3.99%)


S&P 500 (Domestic Stocks)

3.81%

MSCI EAFE (International Stocks)

2075210021252150217522002225225022752300

Sep-16 Oct-16 Nov-16 Dec-16

S&P 500 Index

1600

1625

1650

1675

1700

1725

1750


MSCI EAFE Index

1

1.25

1.5

1.75

2

2.25

24.5

25.0

25.5

26.0

26.5


5Y

r T-

No

te %

Yie

ld

Tre

asu

ry In

de

x

Treasury Aggregate Bond Index vs 5Yr T-Note

Tsy Index 5Yr

4

Historical Sector Allocation - All Assets

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

CC Inv Pool 67.9% 51.6% 38.5% 26.4% 14.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 1.8%

U.S. Stocks - RBIF 15.6% 23.9% 31.1% 37.0% 42.8% 48.3% 50.0% 50.2% 49.9% 50.0% 51.1% 52.0%

U.S. Bonds - RBIF 9.2% 14.8% 17.9% 21.0% 24.1% 28.5% 27.8% 27.8% 27.7% 27.8% 26.9% 26.5%

Int'l Stocks - RBIF 6.4% 9.4% 11.9% 14.8% 16.8% 18.3% 19.3% 19.2% 19.4% 19.4% 18.8% 19.3%

Cash Equiv - RBIF 0.9% 0.3% 0.5% 0.8% 2.0% 2.6% 0.6% 0.5% 0.7% 0.6% 0.9% 0.4%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Sector


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%


U.S. Stocks-RBIF

U.S. Bonds-RBIF

Int'l Stocks-RBIF

Cash Equv-RBIF

Inv Pool

5

Historical Sector Allocation - RBIF Assets


U.S. Stocks - RBIF 48.7% 49.5% 50.6% 50.2% 49.9% 49.4% 51.2% 51.3% 51.1% 51.2% 52.3% 52.9%

Int'l Stocks - RBIF 19.8% 19.4% 19.4% 20.1% 19.6% 18.7% 19.7% 19.7% 19.9% 19.8% 19.2% 19.7%

U.S. Bonds - RBIF 28.8% 30.5% 29.2% 28.6% 28.1% 29.2% 28.4% 28.5% 28.4% 28.5% 27.5% 27.0%

Cash Equiv - RBIF 2.7% 0.5% 0.9% 1.1% 2.3% 2.6% 0.6% 0.5% 0.7% 0.6% 0.9% 0.4%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%


RBIF Sector

15%

20%

25%

30%

35%

40%

45%

50%

55%


Intl. Stock TargetRange

U.S. Bond Target Range

U.S. Stock Target Range

6

Cost vs Market ValueMetro OPEB Trust12/31/2016

$3.80

$3.85

$3.90

$3.95

$4.00

$4.05

$4.10

$4.15

$4.20

$4.25

$4.30

Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

Millio

ns

Cost Value vs. Market Value

Market Value

Cost Value

-$100

-$50

$0

$50

$100

$150

Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

Th

ou

san

ds

Gain/Loss from Previous Month

7

Historical Total Rate of Return Performance - RBIF Investments Only

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun2.959% -0.084% 0.218% -1.663% 0.781% 1.616%3.007% -0.125% 0.277% -1.642% 0.532% 1.679%

-0.048% 0.041% -0.060% -0.020% 0.249% -0.063%-0.048% -0.006% -0.067% -0.087% 0.165% 0.103%

FY16 FYTD17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY273.112% 3.825%1.507% 3.722%

1.605% 0.103%Benchmark: 49% S&P 500, 30% Barclays Aggregate Treasury Bond, 21% MSCI EAFE -- RBIF Returns are net of feesFY 2016 Started for the month ending January 2016

Monthly Variance


RBIF PortfolioRBIF Benchmark

FTYD Variance

RBIF PortfolioBenchmark

Yearly Variance

-0.40%

-0.20%

0.00%

0.20%

0.40%

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Perc

en

t V

ari

an

ce

Monthly and FYTD Total Rate of Return Variance to Benchmark Monthly

FYTD

1.605%

0.103%

-1.50%

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

FY16 FYTD17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27

Perc

en

t V

ari

an

ce

Fiscal Year Total Rate of Return Variance to Benchmark

8

Historical Total Rate of Return Performance - RBIF Indexes

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun3.684% 0.141% 0.018% -1.823% 3.698% 1.971%

5.068% 0.105% 1.278% -2.025% -1.940% 3.440%

0.460% -0.720% 0.000% -1.080% -2.910% -0.030%

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun3.684% 3.830% 3.848% 1.955% 5.726% 7.809%

5.068% 5.179% 6.523% 4.366% 2.341% 5.862%

0.460% -0.263% -0.263% -1.340% -4.211% -4.240%

U.S. Stocks

Int'l Stocks

U.S. Bonds


U.S. Stocks

Int'l Stocks

U.S. Bonds

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%


Perc

en

t V

ari

an

ce

Monthly Total Rate of Return US Stocks

Int'l Stocks

US Bonds

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%


Perc

en

t V

ari

an

ce

Fiscal Year-To-Date Total Rate of Return

US Stocks

Int'l Stocks

US Bonds

9

Stock and Bond Indicies History

Data Souce: Bloomberg


700

900

1100

1300

1500

1700

1900

2100

2300

2500D

ec-

99

Jun

-00

De

c-0

0

Jun

-01

De

c-0

1

Jun

-02

De

c-0

2

Jun

-03

De

c-0

3

Jun

-04

De

c-0

4

Jun

-05

De

c-0

5

Jun

-06

De

c-0

6

Jun

-07

De

c-0

7

Jun

-08

De

c-0

8

Jun

-09

De

c-0

9

Jun

-10

De

c-1

0

Jun

-11

De

c-1

1

Jun

-12

De

c-1

2

Jun

-13

De

c-1

3

Jun

-14

De

c-1

4

Jun

-15

De

c-1

5

Jun

-16

De

c-1

6

Ind

ex

Val

ue

S&P 500 and MSCI EAFE Indexes S&P 500 EAFE

95

97

99

101

103

105

107

109

111

113

115

Sep

-03

De

c-0

3M

ar-0

4Ju

n-0

4Se

p-0

4D

ec-

04

Mar

-05

Jun

-05

Sep

-05

De

c-0

5M

ar-0

6Ju

n-0

6Se

p-0

6D

ec-

06

Mar

-07

Jun

-07

Sep

-07

De

c-0

7M

ar-0

8Ju

n-0

8Se

p-0

8D

ec-

08

Mar

-09

Jun

-09

Sep

-09

De

c-0

9M

ar-1

0Ju

n-1

0Se

p-1

0D

ec-

10

Mar

-11

Jun

-11

Sep

-11

De

c-1

1M

ar-1

2Ju

n-1

2Se

p-1

2D

ec-

12

Mar

-13

Jun

-13

Sep

-13

De

c-1

3M

ar-1

4Ju

n-1

4Se

p-1

4D

ec-

14

Mar

-15

Jun

-15

Sep

-15

De

c-1

5M

ar-1

6Ju

n-1

6Se

p-1

6D

ec-

16

ETF

Pri

ce

Barclays Aggregate U.S. Bond ETF

10

Glossary and Disclosure

Report Source Data: RBIF Information:

RBIF: Bank of New York Mellon RBIF investments are overseen by Nevada PERS personnel

Benchmark: Bloomberg Investment object is to generate an 8% long-term return, exceeding CPI by 4.5%

Clark County Investment Pool: FTN Main Street Asset classes will be rebalanced according to range triggers shown on page 2

Rebalancing funding source/destination shall be those asset classes furthest away from their targets

Glossary:

S&P 500: S&P index capturing large-cap U.S. based companies

MSCI EAFE: MSCI index capturing large and mid-cap equities across developed markets in EAFE (Europe, Australasia, and the Far East), excluding the U.S. and Canada

Barclays Aggregate Treasury Index: ETF which seeks to track the investment results of an index composed of U.S. Treasury bonds and notes

Barclays Aggregate Bond: Barclays index which tracks an index of U.S. investment-grade government (including mortgage-backed) and corporate bonds

ETF: Exchange traded fund, is a marketable security that tracks an index, such as the Barclays Aggregate Bond Index

Investment Pool: Short-term, high quality fixed income pool overseen by the Clark County Treasurer

Although this information has been obtained from sources which we believe to be reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for informational purposes only and is not intended as an offer or solicitation with respect to any particular security, investment strategy, or investment product. All herein listed securities are subject to availability and change in price. Past performance is not indicative of future results. Ratings on all securities are subject to change. FTN Financial Group, FTN Financial Capital Markets, and FTN Financial Portfolio Advisors are divisions of First Tennessee Bank National Association (FTB). FTN Financial Securities Corp (FFSC), FTN Financial Main Street Advisors, LLC, and FTN Financial Capital Assets Corporation are wholly owned subsidiaries of FTB. FFSC is a member of FINRA and SIPC—http://www.sipc.org/. FTN Financial Group, through FTB or its affiliates, offers investment products and services. FTN Financial is not registered as a Municipal Advisor. This message is intended only for the use of the individual or entity to which it is addressed and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, employee or agent responsible to deliver it to the intended recipient, you are hereby notified that reading, disseminating, distributing or copying this communication is strictly prohibited.

11

other post-employment benefits trust fund agenda … agenda 0… · december 31, 2016 7....

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