2009-01-22-RB-min - Laserfiche WebLink

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MINUTES OF THE JANUARY 22, 2009 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 013009 warrant and the January payroll. The Board noted 14 new members: Emily Lavine, Asst. Director of Human Services; Laurie Henry, Youth Services Asst. Director; Craig Hall, Comm. Ed Director; Aaron Paskaslis, Firefighter; Dorinda Goodman, IT Director; Amanda Sullivan, Shanna Hayes - Bowie, Kelsey Anderson, Susan Gurry, Allison Webster, Catherine Hauke - McCarthy, Christopher Allen, Sosi Toomajanian, Sheera Knecht; Instructional Aides The Board noted 5 deceased .members: Theresa Shields, 12113/08, School Dept. Opt. A; Lorraine Theriault, 12125108, DPW Clerk, Opt. B depleted; Janet Janusas (non- contrib. Survivor of John) 12120108; Betty Dalrymple, School Clerk, Opt. B depleted, 12125108; Mildred Cronin, Survivor of Cornelius P. Cronin, 111109 Fran Peters and Lou Ann Eisenhut from Meketa presented the 4 th quarter 2008 investment review. They determined that the market value for December 31 was approximately $80.2 million. Fran did indicate that December was a good month but so far in January, the gain has been lost. He presented a broad market overview. GDP growth declined 5% in the fourth quarter. It is felt that President Obama's stimulus package of $3 Trillion is a good starting point. The unemployment rate reached 7.2% which is the highest since 1993 and it could reach 10 %. There was an extended discussion of the system going forward. Alan noted the investments are about equal between equity and alternative. The discussion revolved around whether to stay with the current portfolio or if it should be changed from the 50150. Is it the right strategic allocation and where will the conviction be when things start to rebound? Alan suggested that the Board should probably meet more then once a month while the market is so volatile. The current equity holdings are about 43% and alternative 40% alternatives. The domestic holdings are approximately 31 % of the portfolio. Alan feels the emerging markets will do better in the rebound. Review by Mike; proponents of credit strategies given the uncertainties in the equity markets, low allocation to fixed, he believes in emerging markets - long term but emerging markets are too volatile now, developed markets need to stabilize first. Need to move more toward credit for some diversification away from global equity positions. Alan feels 4% of PIMCO cut be used to fund hedge funds. Before a hedge fund manager can be chosen and moneys are transferred, Meketa and the Board will do their due