1993/11/23 PAGE 1
RECEIVED FOR FILING
MINUTES
PENSION COMMITTEE MEETII` i'` 79 P ' 2. #"7
NOVEMBER 23 , 1993
,e),,
A Meeting of the Pension Investment Committee was held on
Tuesday, November 23 , 1993 in the Board of Finance Room,
Town Hall .
Present were : Dorothy Chase, Nick Chirico, Gary Clinton,
Stanley Chaznowski , Nancy Lockwood, Scott
Baker, Mark Hudoff , Marty Bronski
The meeting was called to order at 2 : 35 PM.
Mr . Gary Clinton, Chairman, of the Pension Investment Committee
introduced three representatives from ICMA-RC Services who
were at the meeting to do a presentation . They were Mr .
Scott Baker, National Sales Group Representative, Mr . Mark
Hudoff , Senior Investment Analyst, and Mr . Marty Bronski ,
Portfolio Manager.
Mr . Clinton stated that he had invited ICMA-RC to speak about
two investment funds . They are the RC U.S . Treasury Securities
Fund and the RC PLUS Fund .
Mr . Clinton introduced Mr. Scott Baker who proceeded to give
an overview of the ICMA-RC Services Corporation.
Mr . Baker stated the ICMA Retirement Corporation works
exclusively with public sector employees and presently manages
over $3 . 2 billion dollars in retirement funds for 4 , 500 cities
and towns in the United States .
Mr . Baker also noted that funds can be liquidated within 48
hours and be available to the Town for any reason.
Mr. Clinton stated that the Town is looking to invest approx-
imately 3 million dollars which will become available in
November and December of this year .
Mr . Baker stated that ICMA-RC is a non profit corporation. It
has no shareholders . He then introduced Mr. Marty Bronski to
speak about the U.S. Treasury Securities Fund .
Mr . Bronski stated that this fund invests in U.S . Treasury Bills ,
Notes , and STRIPS . He also stated that this fund has a high
return of 11 . 23%, but is subject to market place fluctuations .
Mr . Bronski noted that this fund is fully backed by the U.S .
Government and is managed by Bridgewater Asset Management, one
of the premier companies in the country with an excellent
reputation.
PAGE 2
Mr . Bronski stated that this fund has a state of the art in-
formation systems that gauges the economy and inflation. It
also has the technology to respond immediately to market data,
such as looking for mispriced securities that can be exploited
to its advantage .
Mr . Bronski stated that this fund is geared toward long term
maturity ranging from 5 to 11 years .
Mr . Clinton asked Mr . Bronski what guarantees the Town has if
Bridgewater Asset Management is not doing a good job.
Mr . Bronski stated that Bridgewater is under review every
quarter by ICMA-RC and ICMA-RC can replace them at anytime and
turn the asset management over to another firm with no incon-
venience to the Town.
Mr . Mark Hudoff then proceeded to speak about the RC PLUS Fund.
He stated that the fund presently has assets over $1 .4 billion
dollars and that the current rate for 401 Plans is 6 . 25%.
Mr . Hudoff stated that this fund can be designed to maximize
return and preseve capital . Mr . Hudoff stated that this fund
has a broad diversification among financial institutions and
that no more that 35% is allocated to one specific issuer .
Mr . Hudoff stated that this fund offers protection of principal
and offers continuous update performance forcasts and other
strategy options .
At this time Mr . Clinton thanked the three representatives
from ICMA-RC for attending this meeting and informed them
that he would let them know of the Pension Investment Committee ' s
decision within one week.
Ms . Nancy Lockwood informed the Committee that she had contacted
Fleet Bank and Dean Whitter and received the following bids :
Dean Whitter - 2 years - 4 . 22%; 3 years - 4. 54%; 5 years - 5 . 15%
Fleet Bank - 2 years - 4 . 23%; 3 years - 5 . 56%; 5 years - 5 . 17%
Ms . Lockwood noted that these bids are subject to market place
fluctuations .
Mr. Clinton stated that the Town has $900 ,000 invested with
CIGNA at this time and that he would like to take $500,000 out
to invest with ICMA-RC along with the 3 million dollars also
available.
Mr. Stanley Chaznowski suggested that the Committee invest
3 million dollars in the RC PLUS Fund and $500,000 in the
U.S . Treasury Securities Fund .
Ms . Lockwood suggested that the Pension Committee meet again
PAGE 3
after the first quarterly returns are received from ICMA-RC.
Mr. Clinton noted that the U.S . Treasury Securities Funds has
a high return but it does not have a guaranteed rate, while the
RC PLUS Fund has a return of only 6 . 25%, it does have a guaranteed
rate.
Mr . Clinton suggests that the most prudent and safest course
is to put the majority of the funds available in the RC PLUS
Fund with a smaller amount in the U.S . Treasury Securities
Fund.
MOTION was made by Mr. Nick Chirico, seconded by Mr .
Stanley Chaznowski and VOTED to invest 3 million dollars
in the ICMA-RC PLUS Fund and $500,000 in the ICMA-RC
U.S . Treasury Securities Fund .
ALL VOTED IN FAVOR .
Mr . Clinton will send a letter to the Executive Board informing
them of the recommendations made by the Pension Investment
Committee.
The meeting was adjourned at 4 : 35 P.M.
Respectfully submitted ,
0A-r\f‘V\ 60b):N1/4-tICA:
JoAnn Budzinski
Recording Secretary