2014-03-31-RB-min - Laserfiche WebLink

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Minutes of the March 31, 2014 Retirement Board Meeting Present: Robert Cunha, Joe Foley, Rob Addelson, Michael McNabb, Marguerite Oliva, Karen Marchant, Absent: Alan Fields Bob Cunha called the meeting to order at 8:00 AM. The Board accepted and signed the 033114 Warrant and March payroll. The January minutes were reviewed and approved as well as the cashbooks for January 2014. NEW MEMBERS: (6) Emily Smith, Library Head of Technology: Nickysson Mancini, Arthur Summers, Frederick Martin, Custodians; Lorraine Garrett, Administrative Assistant; Christopher Burnham, Firefighter /Paramedic; Jordan McCarron, Conservation Stewardship Program Coordinator DEATHS: Mary Radz, IT Director, 2/28/14; Darrell Cain, Engineer, 3118/14 Sergio DeMango attended the meeting to request his group classification be changed to Group 2. He presented a new job description as well as copies of his Journeymen and Master Electricians' licenses. After reviewing the documentation, the Board unanimously voted to grant his request. Henry Jaung & LouAnn Eisenhut presented the March 31, 2014 update. The market value as of 2/28114 was $133.2, an increase of over $4mm since 1/31/14. Henry said Meketa could do an optimization study and Mike mentioned optimization of bonds does not work. The Board reviewed the actual allocation of the portfolio and then studied the potential new target allocation which would decrease U.S.Equity and increase Emerging Market Equity, Core Fixed Income and Value Added Fixed Income. The expected 20 year return would be 7.9% which is the same as the current actual allocation. When studying the actual asset allocation, the 78% in total equity appeared high but that figure included 10% Hedge Funds. Alan was more comfortable with the aggregate asset summary report which indicates public equity at 67 %. Alan mentioned that the PRIT returns should not be used as a guideline. It is more observational. Alan asked Meketa to consider looking at Core Fixed Income instead of Value Added Fixed Income. They spoke about decreasing Core FI from 7% to 4% and moving 2% from equity to Hedge Funds. The Board discussed being more defensive by using Wellington Opportunistic Fund. Rhumbline would be the funding source and the $5m could be moved to FMI and Wellington Opportunistic. Alan asked Henry to present a study of how the portfolio would look by transferring the funds from Rhumbline to FMI and Wellington Opportunistic and to also present an updated study on FMI and Wellington. The Board requested Meketa undertake a search for fixed income managers similar to Monroe and similar to Wellington Opportunistic. Mekata will research and set up RFD's.