2011-07-28-RB-min - Laserfiche WebLink

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MINUTES OF THE JULY 28, 2011 RETIREMENT MEETING Present: Robert Cunha, Joseph Foley, Alan Fields, Rob Addelson, Michael McNabb, Marguerite Oliva Bob Cunha called the meeting to order at 8:00. The Board accepted and signed the 072911 warrant and July payroll. The June minutes were reviewed and signed. New Members: (11) Virginia Gillis, School Exec, Admin. Asst.; Roberta Wanyo; School Admin. Asst., Nicole Dillon; Emily Gardner, Georgia O'Keefe, Laura Walley, Rebecca Washburn, Heather Weake, Student Support Instructors; Cheryl Kelleher, Asst. Database Administrator; Anthony Lucreziano, Custodian; Susan Hayes, Fire Admin. Clerk Retirements: (3) Nadine Wright, Police Office Mgr., 811111; Pauline Burke, DPW office Mgr., 815111; Cathy McCaffrey, Aide, 6/30/11 The ongoing problems with cash shortages were discussed. The Board would like to review the actuarial study to determine the number of participants with each deduction rate knowing that the members having 9% deducted will be funding their own retirement. The possibility of buying a bond to use to cover the shortages was discussed. It was mentioned that the amount of the normal costs plus $750,000 could be added to increase the fixed income portfolio and this could be used each time funds are required. The unanimous decision is to withdraw needed funds from Loomis Sayles Credit Asset Trust account as needed. The Board will rebalance the portfolio and funds will be transferred to Loomis to maintain a balance. Siobhan Kranz from Artio Global Management attended the meeting for a review. The market value as of June 30, 2011 was $4,503,848. Artio uses a top -down approach in emerging markets and a bottom -up approach in developed markets. She spoke of the challenges faced in 2008 and the global sell off as well as the rebound in 2009. Developed markets outperform emerging markets. Whereas material stock selection was the most significant detractor, the decision to underweight in financials helped. Selection in the Industrial stocks was the largest positive contributor with the focus on airports and seaports. Emerging markets underperformed developed markets year -to -date. The largest sector holdings were with consumer discretionary and materials and the smallest holdings were in utilities and telecommunications due to a negative outlook. The firm's investment team added three new professionals in 2010. The Vanguard balance was $1,560,928 as of 6130111 and an additional $500,000 was wired to the Vanguard's Wellington Fund Admiral by the Town.