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Page 1 MONEY PURCHASE PENSION PLAN FOR PEACE OFFICERS BOARD MEETING Minutes March 13, 2012 Meeting Summary The Board met to 1) review/approve the minutes from the last meeting; 2) review/discuss 1st quarter results; 3) review/discuss funds on the watch list; 4) review diversification report; 5) review revenue sharing report; 6) discuss potential plan options; 7) create survey questions; and 8) discuss any Old or Other Business. Roll Call Present: Present were Employee Board Members Micheal Deedon, Justin Petersen and Bryan Lingo, Director of Finance Pat Soderberg and Director of Human Resources Suzanne Smith. Absent: None. Others in attendance: Adam Varga and Darrell Quam from Wells Fargo. Jim Becklenberg from the City and County Manager’s Office and Annette Rauschenberger and Vickie Mauri from Human Resources. Minutes/New Business Items The meeting was called to order at 9:00 am. Disposition of Minutes – The minutes of the February 8, 2012 meeting were approved with no corrections. Review/Discuss Expectations: The board engaged in a conversation with the Wells Fargo team regarding expectations for services moving forward. The board advised Mr. Quam that they expected more engagement from Mr. Quam with the desired outcome of having the best plan out there. It is expected Wells Fargo will take the initiative and advise the board more proactively on new products and services. The board directed Mr. Varga to limit the economic update since this information is included in the presentation and focus instead on underperforming funds, new products and employee education. Follow-up on Advice Track Request from Member: Mr. Lingo advised the Wells Fargo team that some participants were disappointed with the way their portfolio information was presented in their statements. There are dollar amounts but no pie chart or percentage of investments shown. The costs are shown as a unitized price and not the cost per share. The board requested a document from Wells Fargo to better explain the product. Financial Advisory Services: The board requested a search on additional funds. The general plan is adding more index funds across the risk spectrum. Consideration could include a high yield bond fund and some exposure to international bond funds. Model Portfolios: Mr. Deedon had requested a discussion on the potential of adding model portfolios to the pension plan mutual fund line-up. Mr. Quam indicated that employees can build their own portfolios using the existing funds. The board agreed to focus on employee e ducation to improve the members’ technical knowledge regarding asset allocation, risk assessment and retirement planning. ---PAGE BREAK--- Page 2 Review Year-end Reports: The S&P was up 10% with US stocks outperforming international stocks. See pages 1-4 of the year-end Police MPP report for the economic update. See pages 6-7 for participation by fund and cash flow. Review/Discuss Funds on Watch List: See pages 8-11 of the year-end Police MPP report for the Policy Compliance Summary Report showing the compliance results by fund. Janus 20’s score for the last quarter was a The fund continues to underperform against the benchmark. It had a rough 3rd quarter 2011 with a 15% weighting in non-US stocks and underweighting in energy stocks in the 4th quarter. The fund has been the top performing fund in this category over the past three months. T Rowe Price was upgraded to a this past quarter. Diversification Report: Mr. Quam will present this information at the next meeting. Old Business/Other Business Old Business/Other Business: Status of Mutual Fund Changes: Fees and Revenue Sharing: Mr. Quam will present this information at the next meeting. Adjournment The meeting was adjourned at 12:05 p.m. Approval Minutes Prepared by Suzanne Smith Approved by Chair