The above named committee met via tele-conference on the date indicated above. The following members participated:
Chairman Phillip Kerr, Kathy Earley, Shane Evans, Alex Sigmon and Bernie Williford (ex-officio). NCNGA Executive Director Adene Tyler also participated.
Beth Austin, Allan Cecil, Mark Costley, John Eudy, Warren Newell, and Tom Underwood were unable to participate.
Chairman Kerr declared a quorum present and convened the meeting at 10:05 a.m. Upon motion, committee minutes dated 5 Mar 12 were approved for the record. The Informal Investment Schedule as of 31 Mar 12 was also reviewed and accepted for the record.
The committee reviewed quarterly reports from Park Ridge and Lawson Financial, which were previously emailed to all members. Committeeman Sigmon stated that he had prepared a report which depicts the performance of both firms and a manager comparison report. Park Ridge’s rate of return for the last quarter was 4.8%, as compared to Lawson’s 1.4%. Fourth quarter reports indicate a 4% return for Park Ridge and 2.4% for Lawson. He noted that Park Ridge reports net of fees and Lawson gross of fees. Both reports are time weighted, not dollar weighted. He indicated that it would be a good idea to compare the two during an up and down market, such as the period preceding 2008. It was noted that Park Ridge was contracted in Sep 09 and Lawson in Nov 09.
The manager comparison report indicates the fee schedule for both with Lawson at 1% (or .5% plus $295 per hour), and Park Ridge at .5%. Park Ridge is a more aggressive investor than Lawson; however, both adhere to the NCNGA’s Investment Policy Statement. Park Ridge’s reports are much more detail oriented than Lawson’s. He further stated it was his opinion that there is no real need for two investment advisors. Vice President Williford stated that even if we only have one advisor, we can still have a diversified portfolio.
After further discussion, a motion was made to move the funds from Lawson Financial to Park Ridge effective 30 Jun 12. The motion was seconded and unanimously approved. Chairman Kerr noted that any decision made by the committee would need to be approved by the Executive Council at their next meeting.
Chairman Kerr noted that the Executive Council had approved the FY 12-13 budget submitted by the Finance Committee. This is an unbalanced budget, and the structure of future budgets will be discussed during the next meeting.
There was no further business to come before the committee, and the meeting was adjourned at 10:35 a.m.
Adene T. Tyler Executive Director