2010-05-25-RB-min - Laserfiche WebLink

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MINUTES OF THE MAY 25, 2010 RETIREMENT MEETING Present: Robert Cunha, Joseph Foley, Rob Addelson, Michael McNabb, Alan Fields Marguerite Oliva Bob Cunha called the meeting to order at 8:00. The Board accepted and signed the 052810 warrant and the May payroll. The April minutes were reviewed and signed. New Members: Michael Bordenca, Dispatcher; Marc Valenti, Hwy. Superintendent; Kevin Ciccone, Firefighter /Paramedic Retirements: Phyllis Herda, Children's Librarian, 6/18/10; Zaven Kalpakdjian, School Custodian, 8/27/10; Wayne Delaney, 6/26110, Asst. Fire Chief; John Vas sallo, Parks Laborer, 5/31/10 Deceased Retiree: Theda Bentley, Opt. C Survivor, 4/22/10 Fran Peters from Meketa presented an interim review for April. April was a positive month over all. May is down about 5% so far. The volatility is in line with what has been seen in the last two years. The Retirement System's investment value at the end of April was $101.2 million. He mentioned the slight rebalancing with funds being moved from Hartford and Contrafund to PIMCO Global Multi Asset, Cash and on May 1, to Wellington Opportunistic. There was a general discussion about Beacon Capital. The biggest issue is the cost of the collateralized loans that will come due in 2012. Beacon has moved to a special servicer to try to extend loans and have submitted a plan to extend the terms of loans five years. They are current on all loans. Regarding commercial real estate maturity, 55% was due by the end of 12 /10 and now it is down to about 33% due at the end of April 2011 as they were able to extend. The consensus is that we have probably seen the lows in value and there is a low probability that we will assume a 40% loss. Real estate is showing some signs of value stabilization. Beacon will continue to be discussed. Alan asked about the Wellington Opportunistic Fund's positioning in light of what is happening with the market. He mentioned that there has been quite a bit of change in the last month. Fran stated that they have had good results so far this year, outperforming the index by a percent. Historically Wellington has shown they have been able to make calls at the right time. Meketa will be in contact with Wellington and update the Board as far as their positioning. In discussing other investments, Acadian has turned around somewhat this year and is up 4% and added some value to the portfolio; Matthews has added value; Artio has a macro view and pulled back in emerging markets and there has been good results with Loomis.