2014-05-21-RB-min - Laserfiche WebLink

Browse Search

Minutes of the May 21, 2014 Retirement Board Meeting Present: Robert Cunha, Alan Fields, Joe Foley, Rob Addelson, Marguerite Oliva, Karen Marchant Mike McNabb absent I Bob Cunha called the meeting to order at 8:00 AM. The Board accepted and signed the 053014 Warrant and May payroll. The April minutes were reviewed and approved as well as the cashbooks for March 2014. NEW MEMBERS: (2) Earl Erickson, Keith McLaughlin DPW Laborer DEATHS: Roberta Bosinoff, Librarian, 5/7114 Dan Sherman had provided the Board with a preliminary actuarial report for their review. Bob requested a funding schedule be provided and Alan would like a management discussion & analysis provided in the report including the effects of the last 5 years returns compounding at a 12%rate and the additional cost caused by the new mortality rate schedule. Dan also provided a Police buyback proposal report that the Town Manager had requested. The report showed that acceptance would benefit the Town. Motion by Joe seconded by Alan and voted unanimously to accept the report. Acceptance is local option and will go to Town Meeting in the spring of 2015. Rob presented a draft of the letter to be sent to Joe Connarton. The Board made some modifications and would like Ken Donnelly and Jay Kaufman to be copied. Mike Sacco will be contacted to request he survey other retirement systems for their response. Julie Lind and Zela Astarjian from Rhumbline were present for their annual review. We are in the Russell 1000 pooled index fund. It is a collective fund and we are 1 of 11 investors. They reported the market value as of April 30, 2014 is $11,173,342. They also discussed the portfolio characteristics, top 10 holdings, sectors weights, commissions, current profile and organizational chart. Mike Zinkand from Hartford was present for the annual review of the Capital Appreciation Fund. In anticipation of Saul Pannell's retirement, Kent Stahl was hired as portfolio manager on 311/13 and took over 10% of portfolio. Currently he manages up to 25% and as of 6/1114 it will be 51%. Saul will manage 49% and will give 12 months' notice of retirement. Mike also discussed underlying strategies, manager selection and oversight process,key aspects, exposure and performance. Annualized returns are 27.55% for one year and 13.94% since inception with a market value of$18.1 million as of 4130/14. LouAnn Eisenhut from Meketa presented the 3/31/14 quarterly review and the 4/30114 interim report. As of 4130114 the market value was $133.5 mil up from $132.8 mil as of 3/31/14. Performance was largely flat with a 0.1% for April. There is a higher exposure to international equity because of underlying investments. A discussion followed on reallocation. For new funds, Meketa is familiar with Vanguard Dividend Growth, Parnassus and Glenmede Large Cap Equity and presented a memorandum explaining the fund which has high fees. Alan's idea is to