2018-06-28-RB-min - Laserfiche WebLink

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Minutes of the June 28, 2018 Retirement Board meeting: Present: Robert Cunha, Alan Fields, Carolyn Kosnoff, Marguerite Oliva and Jim Condon Absent: Frederick Weiss and Joseph Foley NEW MEMBERS: (10) Matthew Cunha, Kyle Pursell, Sean Sullivan, Jessiel Alfonzo, Police Officers; Claudia Cromer, LHA Program Coordinator; Michelle Techler, Librarian; Emily Lesch, Admin. Asst.; David McKenna, Custodian; Reid Warnock, Jonathan Kimball, Firefighters DEATHS: (1) Lisa Vassallo, Survivor of John Vassallo, 04/04/2018 RETIREMENTS: (1) Jennifer Chen, School Aide, 6/30/2018 The Board accepted the 063018 Warrant and June payroll. The May 2018 minutes were reviewed and approved, as well as the cashbooks for April 2018. Bob reviewed the Board Agenda for this month and spoke briefly regarding the PERAC decision on whether the retirement board should take retirement deductions for those on Workers' Comp. This stems from a memo we received from Michael Sacco and Memo#17, which supersedes Memo#12 from PERAC. The memo is in reference to the Vernava decision issued by the SJC back on February 13, 2018 regarding vacation and sick time being considered regular compensation in conjunction with Workers' Compensation benefits. Bladen Burns from FMI Large Cap Fund began his conference call into the Board at 8:30 with his update. He noted his presentation figures are based on performance through March 2018. Since inception on May 3, 2012, with a portfolio value of 5m, the overall portfolio value as of 3/31/2018 is 5,532,908.00. They are struggling to get ahead of the S & P 500, which is up 2% for 2018. He feels they are stuck in a "bear" market, with only a few of their holdings working for them, and states there is not much value out there. However, FMI added four new corporations to the portfolio. Quest Diagnostics Inc., Smith & Nephew PLC, Pepsi Co., and Massco Inc. These were chosen to offset the reduced position they have within UnitedHealth Group. Bladen went on to state technology stocks do not perform well within their portfolio, and the need for a non-volatile market to operate well. Also, 40%, up to 50% of the portfolio is in a defensive mode. He mentioned they recently sold Comcast/Fox shares for risk mitigation purposes. Walt Disney had announced their intention to acquire a collection of 2111 Century Fox content, which led to the FMI sell-off of shares. Bladen finished his presentation to the Board at 8:55 AM. Alan opens the conversation around the FMI presentation. He has issues in terms of the management style. The current managers for FMI do not seem to be performing well like other ones out there. They are taking no risks, and holding onto cash too long. Plus, they are not executing well with some big names in the portfolio. It seems to be the same slow cycle as it