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and prices on bonds had fallen, which ended up being a good thing for the portfolio. The <br />beginning of 2019, the portfolio was still in the same position with the portfolio being managed <br />against the Intermediate AG because the treasury curve had gotten to such a flat position that <br />the one year yield was yielding the same as an eight year bond. The eight year bond has about <br />any reason to go out because there was no pick- <br />conservative position possible in terms of the bond portfolio. For the last year they were on the <br />mark for performance vs. the AG, but performance fell off a bit in March. <br /> <br />Sean Hughes <br />bottomed out Christmas Eve at 19.35% and since then to date, the market is up 21.5%. This <br />quarter they outperformed the Equities only and Covered Call and the Call Options <br />outperformed benchmark Call Options by a huge margin. The equity portfolio returned 14.4% <br />during the quarter vs. the benchmark at 14.0%. The Covered Call portfolio returned 11% which <br />was 420bps higher than the benchmark. Covered Call three year return was at 6.7% vs bonds <br />at 1.8%. They moved a large portion of the allocation into Covered Call to overweight equities <br />and underweight income which ended up being a very good move. <br /> <br />Chairman Reedy commented that the board is responsible for managing $24.5 million for police <br />and fire and $23 million for non-uniformed employees/members. <br /> <br />Member Stutz inquired about separating the Covered Call portion to find out how much of the <br />return (positive/negative) was due to Call Options vs. Equity. Sean Hughes stated that in the <br />quarter return, you can see the 14.4% for Equities and 11% for Call Options so the Call Options <br />detracted from the 340bps. <br /> <br />Acceptance of the reports was unanimous. <br /> <br />Annual Actuarial Valuation Review <br />Michael Ribble of Buck Consultants provided an overview of the 2019 Actuarial Valuations. He <br />commented that the valuation is a snapshot as of January 1, 2019, and the bad news is what <br />h <br />year. On a market value basis, the police and fire plan lost 5.1% on their assets. The expected <br />actuarial valuation purposesif we rode the market once a year <br />e an actuarial <br />value of assets that smooths the losses from year to year, basically it takes the difference in <br />where we want to be with our market value and where we are with our actuarial value and it cuts <br />it 20% every year. Every five years they do an experience study and should take a look at the <br />way <br />are other methods to look at that would probably be a better practice. The Police and Fire <br />Market Value is at $23,563,839 but the Actuarial Value is at $27,090,760 which is not a real <br />number but an actuarial smoothing number and a standard practice. A lot of actuarial firms are <br />Ћ <br /> <br /> <br />