2009-02-25-RB-min - Laserfiche WebLink

Browse Search

MINUTES OF THE FEBRUARY 25, 2009 RETIREMENT MEETING Present: Robert Cunha, Joseph Foley, Rob Addelson, Michael McNabb, Marguerite Oliva Absent: Alan Fields Bob Cunha called the meeting to order at 8:00. The Board accepted and signed the 022709 warrant and the February payroll. The Board noted 5 new members: Lauren Whitcomb, Kayla Baglieri, Special Classroom Aides; Joseph Vieira, Elinor MacLellan, Custodians; Andrea Morrison, Admin. Asst. The Board noted one request for retirement: Joseph Lahiff, Detective, 1131109 John Haggerty and Brian Dana from Meketa attended the meeting. Brian deals with hedge funds at Meketa and will assist in the review for a hedge fund manager. PERAC regulations limit the investment to 5% of the retirement system to hedge funds. John Haggerty presented the February 28, 2009 interim update. Market value is $71.5. He also presented an asset allocation report showing two different alternative policy options. One included a 5% allocation to hedge funds, taken from domestic and foreign equities and the other adds 5% to high yield (credit opportunities) taken from domestic and foreign equities. Mike commented that this is clearly a unique time for investing. The hedge fund industry is a disaster right now with investors currently fleeing. Hedge fund financing should take place in the future. The current climate could last for two more years. Rob questioned if we could sacrifice the 8% assumption for the short term and move more conservatively in expectation that things will get better. Mike feels that when rational investors return, there will be a clearer picture of where to invest. Things could start flowing within six months. John Haggerty said that hedge fund fundings are on hold at Meketa and feels the Board should take it slow with the hedge fund search. Brian Dana has been evaluating the managers. There are ample amounts of opportunity, but investing in hedge fiends should be approached with caution. It will be possible to find sensible managers but it was noted that 2008 was a negative year for hedge funds. Mike feels that hedge funds offer a great opportunity going forward. There were 23 responders to the RFP for a hedge fund manager and Meketa has considerd 11 firms as semi - finalists. It was noted that all hedge funds have international exposure. John said he would make recommendations if the board wanted to make a quick decision. There was an update on the Asia PC ex -Japan manager search. John stated that Meketa is more comfortable with Aberdeen over Matthews.