2009-03-17-RB-min - Laserfiche WebLink

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MINUTES OF THE MARCH 17, 2009 RETIREMENT MEETING Present: Robert Cunha, Joseph Foley, Alan Fields, Michael McNabb, Marguerite Oliva Absent: Rob Addelson Bob Cunha called the meeting to order at 8:00. The Board accepted and signed the 033109 warrant and the March payroll. The Board reviewed and signed the completed 2008 PERAC Annual Statement. The Board noted I new member: Richard Ham III, Aide The Board noted two requests for retirement: Marquerite McCormack, Asst. Human Services, 6130109; Christopher Casey, Police Chief, 3129109 Fran Peters and LouAnn Eisenhut from Meketa attended the meeting and presented the February Interim Update. The market value of the total portfolio as of February 28,2009 was $71.5 M. $21.6 M was in Domestic Equity Assets; $8.1 M in International Equity Assets; $17.4 M in Real Return; $11.8 M in Global Tactical Asset Allocation Assets; $5.3 M in Investment Grade Bonds; $3.6 M in Real Estate Assets and $3.7 M in Cash. There was a general discussion regarding State Street's refusal to transfer $600,000 to the Wellington Opportunistic Fund. State Street is forming a committee to formalize withdrawal requests. We will be allowed to transfer funds next month. State Street securities lending was discussed. Alan felt the Board should buy a bond fund. SSgA credit holdings are trading at .90 on the dollar. Meketa's recommendation is to not make a rash move to liquidate the SSgA fund because of securities lending. Don't take the loss. Wait it out and allow the market to come back. Alan wants to invest in an index fund that pays .100 on the dollar. Mike feels this is a policy issue and remove securities lending in the future. Meketa noted the new head of the team for Wellington AsiaPC ex -Japan was employed previously by UBS. Meketa is checking his track record since they are not familiar with him as a manager. PIMCO's equity allocation is down. PIMCO is creating a new fund of direct assets and individual securities can be purchased. PIMCO and Wellington are 40% of the portfolio and out performed the system. Alan proposed moving forward with hedge funds. Meketa will report back at the next meeting with who they feel are the best managers who responded to the RFP. Alan noted that emerging markets returns were up 10 %. Artio is European oriented and comprise half the portfolio. He feels the allocation should be away from Eastern Europe and into Pac