2019-07-25-RB-min - Laserfiche WebLink

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Minutes of the July 25, 2019 Retirement Board Meeting: Present: Carolyn Kosnoff,Alan Fields, Frederick Weiss Absent: Bob Cunha,Joe Foley NEW MEMBERS: (7) Sharon Gunda, Human Services Coordinator; Katharine Labrecque, Mgmt. Fellow; Ashley Fisher-Allen, SSI; Gwen Jefferson, Admin. Clerk; David Goodrich, Mechanic; Jamal Bell, Matias Arias, Laborers RETIREMENTS: (1)Robert A. Sweeney, Patrolman, 7/31/2019 DEATHS:None The Board accepted the 07312019 Warrant and the July payroll. The June minutes were reviewed and approved, as well as the cashbooks for May 2019. Carolyn Kosnoff reviewed the July agenda with the Board members and staff in attendance. There was a White Oak distribution of$89,565.00. The Vanguard balance is up to$15,773,890.00 as of 6/30/2019. Marguerite Oliva spoke briefly regarding the matter of Ryan Bugler. Mr. Bugler's monthly pension has been recalculated effective the July 31, 2019 payment. Also, he was advised he had one (1) month to appeal. The Retirement Board has sent proper notification regarding this matter. The certified letter was returned to our office. Garnishment for overpayments will commence in the near future. The last update we had from Mr. Bugler was that he was seeking legal counsel. Henry Jaung and Tom Dunleavy presented the Meketa update. The portfolio balance as of June 30, 2019 was$175,526,761.00. The first six(6) of 2019 have produced excellent numbers. Our YTD is at 12.4%.The Domestic Equity Asset portfolio is up 20.3%this year. We are seeing great things out of the Russell 3000, S&P 500, and PRIT. Henry reviewed our 3/5/10 year benchmarks. Both our long term and short term investments are doing well. It was noted we have exceeded the actuarial assumption 10 year benchmark. Overall, our asset allocation is holding strong and should remain as is for now. Meketa will look into private debt vs. public equity and see what options would could have later in the year. Looking for something with the probability of achieving at least a 7.5% return over a 1-3 year period. Jonathan Setiabrata and Landy Pheloung presented the White Oak review. This firm has$5.613 in assets under management. Sector exposure based on market value is primarily in Energy and Industrials. They lend to smaller companies with low risk profiles. White Oak has experienced defaults, but claim most are due to technical issues, not payment issues. However,they do have a few companies which have stopped payments on the loans. Most of the loans issued are asset based loans (ABL),which are more secured and have a better duration over time. Over a 3-5 year span,White Oak expects around a 7.5% yield on the loan. Jonathen concluded that White Oak has secured their first Asian market client, as well as researching in the Middle East for clients. Sean Duff and Chris Lund presented the Monroe Capital review. The firm currently has$8.213 in assets under management using 115 employees. Just over 65%of their limited partners are in Pension Plans. Roughly 80%of all lending is sponsored,while 20% is non-sponsored. They will write 30-40 loans per year. Less than 3%of those are ABL loans. Since 2004, Monroe has had 14 defaults out of 362 write loans. They boast a strong 16 year track record of successfully delivering attractive returns. The