HomeMy WebLinkAbout2012-01-26-RB-minMinutes of the January 26, 2012 Retirement Meeting
Present: Robert Cunha, Rob Addelson, Joe Foley, Alan Fields, Marguerite Oliva
Absent: Michael McNabb
Bob Cunha called the meeting to order at 8:00 AM.
The Board accepted and signed the 1/26/12 Warrant and January payroll. The December minutes
were reviewed and signed.
New Members: (1) David Kucharsky, Part Time Planner
Retirements: Maryann Loveday, Tutor, 2/1/12
Deceased: Louisa Barron, Ord. Dis. Opt. C. Survivor, 10 /27/11
Henry Jueng from Meketa presented the interim review for December 31, 2011. The market
value as of December 31, 2011 was $102.4 million down from $103.7 million on November 30,
2011.
Scott Brink and Sarah Gilfillan from Wellington Management Company presented an update and
overview as of December 31, 2011. Wellington's assets under management total $651 billion;
40% equity, 46% fixed income, and 14% multi- strategy and have 128 partners. The market value
of the opportunistic investment allocation as of December 31, 2011 was $15,587,197, down
13.51% for the year. They were disappointed with the performance of the fund. The reasons for
the underperformance were weak performance in key structural themes, tactical increase to key
themes, contrarian tactical ideas, minimal exposure to safety and minimal exposure to market
leaders. In moving forward they highlighted the changes they made in investment allocations and
current positioning.
There was a motion by Bob, second by Joe and voted unanimously to adopt contract amendments
for investment companies effective 1/1/12 — 12/31/17 for each of the following investments
companies; Fidelity, Pimco, Hartford, Matthews and SSgA. Engagement Contracts and
Placement Agent Policies were received from Acadian, Artio, Loomis Sayles, Wellington, Atty.
Sacco, Street Street and Pension Technology Group.
Luanne Eisenhut from Meketa presented its amended contract with fee adjustments. There was a
motion by Bob, second by Rob and voted unanimously to accept the amended contract.
Chris from Meketa presented the results for the Domestic High Quality Manager and the Global
Infrastructure searches. There were 26 respondents, narrowed down to 7 for Domestic High
Quality Managers and 7 respondents for Global Infrastructure, narrowed down to 4. Due to
PERAC's procurement regulations, the RFP process will have to be undertaken again as contracts
could not be finalized by 2/16/12. Meketa will contact the respondents as to the reason for the
reissue.
After a discussion and Meketa review, the Board noted they would like to meet with Domestic
High Quality managers Fiduciary Management, Inc., Neuberger Berman Core Equity and
Wellington Management, LLP at the February 29 meeting. There will be another meeting set
for the week of 3/12/12 for Infrastructure Managers. The Board would like to meet with Duff &
Phelps Investment Co., RARE Infrastructure and Wellington Management, LLP.
There was a discussion on whether or not to retain the article regarding increasing the COLA
from $12,000 to $16,000 on the Town's warrant. It was agreed to remove the article from the
warrant and present the article on next year's warrant. Rob mentioned it should be presented at
the beginning of the budget process next fall in order to present it at Town Meeting for FY' 14
implementation. When Buck begins the actuarial study for 1 /l /12, they will be asked to look at
the impact of the COLA increase in increments of $1,000 up to $16,000 as well as looking at
different assumption rates of 7% and 7'/2 %.
PERAC memo 13/2012 has been received regarding COLA increases. The F'Y13 COLA increase
for retirees will be voted on at the February 29 meeting.
The Board was informed there will be training available at the MACRS conference June 3 -6 to
comply with the mandatory training requirements for board members. More information will be
provided as received.
The board members were each given the Retirement Board Member Data Form. In order to
furnish certain notifications about compliance in an accurate, timely, and private manner PERAC
seeks updated information from each retirement board member. Each board member is asked to
correct inaccurate data, provide missing information, and mail or fax the completed forms back to
PERAC by February 20, 2012.
It was reported the Vanguard balance as of 12/31/11 is $2,033,975.
Gary Miller from Fidelity will be attending the next meeting.
The Board was reminded that the State Ethics training is still needed by some board members.
Ralph White from Mass Retirees wants pictures of the board for its brochure.
A motion was made, seconded and approved unanimously to adjourn the meeting at 10:15 AM.
The next meeting will be held February 29, 2012, 8.00 AM at Cary Memorial Library in the
Learning Center,
Robert W. Cunha, Chairman
absent
Michael McNabb, Appointed Member
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
Alan Fields, Appointed Member