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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