2014-04-24-RB-min - Laserfiche WebLink

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Minutes of the April 24, 2014 Retirement Board Meeting Present: Robert Cunha, Alan Fields, Joe Foley, Rob Addelson, Michael McNabb, Marguerite Oliva, Karen. Marchant Bob Cunha called the meeting to order at 8:00 AM The Board accepted and signed the 043014 Warrant and April payroll. The March minutes were reviewed and approved as well as the cashbooks for February 2014. NEW MEMBERS: Alix Berube, Inspector of Wires; Linda ElAlami, SPED IA RETIREMENTS: Joseph McLaughlin, Jr., Head Custodian, 711/14 Monroe Capital representatives, Ted Koenig and Sean Duff attended the meeting for their annual review. As of 12/31/13 the annualized net investment income for the Monroe Capital Senior Secured Direct Loan Fund (Unleveraged) LP was 4.44% with an annualized sash on cash return of 3.97 %. Funds are currently 40% invested with 60% by the end of the second quarter and 80% by year end. There are total investments of $212 million in 12 loans. 39% of commitment capital has been called as of 3131114. There will be a distribution to investors by mid May. There are 12 deals in the fund now and that number is expected to double. Banks budget and expected lose on loans of 100 — 200 basis points per year. Monroe has lost 45 basis points cumulative over 12 years. Four deals out of 120 have defaulted. The report included a summary of the 12 loans as well as individual loan overviews. All 12 companies had in internal rating of 2 - "Exhibiting an acceptable level of risk that is similar to the risk at the time of origination. Generally performing as expected or the risk factors are neutral to positive." Joe Beauparlant from Loomis Sayles attended the meeting for an annual review. There have been no changes to the portfolio team. Joe stated it is an interesting time for the bond market. Tapering by the Feds has begun and will probably finish up by the end of 2014 and then tightening will begin causing interest rates to rise. Loomis Credit Asset has a customized benchmark of 50% Barclay's, 25% High Yield and 25% S& P Bond. The net portfolio for 3131114 was 4.39 %, 7.38% for two years, 6.89 for three years and 9.14% annualized for 10/15/09 — 3/31/14. The market value as of 3/31/14 was $10,042,123. Meketa presented their update. Market value as of 3131/14 was $132.8m down from $133.2 on 2/28/14. The search for Senior Direct Lending Manager was discussed. Henry presented a list of six managers that might be of interest. More due diligence would have to be done once RFP's are completed. No request for RFP posted yet. Alan suggested adding to the Hedge Fund portfolio but it was noted we are at the maximum allowance at this time. LouAnn discussed a potential new allocation of transferring assets from RhumbLine to Fiduciary and Wellington Opportunistic which would increase domestic equities to 39% from the current 36 %. It was noted in the report that RhumbLine has a $5m minimum for their commingled fund and a minimum fee of $10,000.