2012-05-31-RB-min - Laserfiche WebLink

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Minutes of the May 31, 2012 Retirement Meetings Present: Robert Cunha, Rob Addelson, Joe Foley, Alan Fields, Michael McNabb, Marguerite Oliva, Karen Marchant Bob Cunha called the meeting to order at 8:00 AM. The Board accepted and signed the 5131112 Warrant and May payroll. The April minutes were reviewed and approved. New Members: Maurice Nobles, I.A.; Sean Pfeiffer, Laborer /Driver Henry Jaung attended the meeting to present the April 30, 2012 interim report. The balance on 4130 was up slightly to $111.9. In discussing the asset allocation, it was noted that the system is underweighted in international developed markets and over weighted in emerging markets. Fixed income assets are right on and the real estate allocation is below the target. The largest exposure is in domestic equity. There is a growing concern over the European problems which are unwinding now. The question of our current exposure in Europe was raised. Are we better with U.S. holdings or further West? The year to date performance shows the total retirement system increase of 9 %. Domestic Equity had the best performance showing a 15% gain followed by international equity at 10.6 %, global tactical assets at 6.8 %, real return at 7% and fixed income at 4.4 %. The subscriptions with Fiduciary Management and Wellington Enduring Assets were completed mid May. $5,000,000 was invested with each investment. Acadian Asset Management representatives Jessica DeVergilio and Patrick McCafferty presented the annual review. The overweight in emerging markets, Canada, Japan and Singapore is the same as last year. There are tighter controls in place for European banks and Acadian has reduced the exposure. The largest industry allocation is energy and transportation and the lowest is banks and pharmaceuticals, biotech and life sciences. Acadian's top 20 current holdings are consistent with last year. The 2012 outlook includes seeing moderate economic growth in the U.S., Europe entering a recession, decelerating growth in emerging markets. There is continued uncertainty leading to shifts in risk sentiment due in part to the unstable European situation and the U.S. contentious political environment. In October Acadian hired a top down research director which brings an additional voice to the team. The CIO makes the final decisions. Joe Foley left the meeting at 9:30. John Carbone and Stewart Carlisle presented the Hartford Capital Appreciation Fund annual review. Hartford has a new contract with Wellington to oversee $90 billion in investments including fixed income. There is an exclusive contract for any new