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HomeMy WebLinkAbout2012-05-31-RB-minMinutes of the May 31, 2012 Retirement Meetings Present: Robert Cunha, Rob Addelson, Joe Foley, Alan Fields, Michael McNabb, Marguerite Oliva, Karen Marchant Bob Cunha called the meeting to order at 8:00 AM. The Board accepted and signed the 5131112 Warrant and May payroll. The April minutes were reviewed and approved. New Members: Maurice Nobles, I.A.; Sean Pfeiffer, Laborer /Driver Henry Jaung attended the meeting to present the April 30, 2012 interim report. The balance on 4130 was up slightly to $111.9. In discussing the asset allocation, it was noted that the system is underweighted in international developed markets and over weighted in emerging markets. Fixed income assets are right on and the real estate allocation is below the target. The largest exposure is in domestic equity. There is a growing concern over the European problems which are unwinding now. The question of our current exposure in Europe was raised. Are we better with U.S. holdings or further West? The year to date performance shows the total retirement system increase of 9 %. Domestic Equity had the best performance showing a 15% gain followed by international equity at 10.6 %, global tactical assets at 6.8 %, real return at 7% and fixed income at 4.4 %. The subscriptions with Fiduciary Management and Wellington Enduring Assets were completed mid May. $5,000,000 was invested with each investment. Acadian Asset Management representatives Jessica DeVergilio and Patrick McCafferty presented the annual review. The overweight in emerging markets, Canada, Japan and Singapore is the same as last year. There are tighter controls in place for European banks and Acadian has reduced the exposure. The largest industry allocation is energy and transportation and the lowest is banks and pharmaceuticals, biotech and life sciences. Acadian's top 20 current holdings are consistent with last year. The 2012 outlook includes seeing moderate economic growth in the U.S., Europe entering a recession, decelerating growth in emerging markets. There is continued uncertainty leading to shifts in risk sentiment due in part to the unstable European situation and the U.S. contentious political environment. In October Acadian hired a top down research director which brings an additional voice to the team. The CIO makes the final decisions. Joe Foley left the meeting at 9:30. John Carbone and Stewart Carlisle presented the Hartford Capital Appreciation Fund annual review. Hartford has a new contract with Wellington to oversee $90 billion in investments including fixed income. There is an exclusive contract for any new strategies. The general account is still managed by Hartford. Hartford will be moving their headquarters to Radnor, PA in the near future. Alan asked Henry to obtain information for the next meeting from PIMCO, Matthews, Acadian and Artio as to how they are handling the global outlook. Bob, Joe, Mike and Maggie will be attending the MACRS Conference in Hyannis. Notification was received that the PERAC Emerging Issues Forum will be held at Holy Cross on Sept. 20, 2012. Notification was received from PERAC that there will be no educational credits for board members attending. The Board reviewed the 2012 budget and the receipts and disbursements reports. Mike Sacco sent notification that the State Retirement did not seek an appeal on the Charles Shannon issue. He will forward a request that the 3(8)( c) report be changed to remove the amounts previously billed. Bob has spoken with the compensation consultant to begin the survey review with other retirement systems for the administrator's and assistant's salaries. The discussion of a request from MTRS regarding acceptance of service liability for Regina Lamont was postponed until the June meeting. It was noted that there will be a cash shortage for the month of June, amount to be determined. The redemption will come from Fidelity Contrafund. SSgA and Loomis Sayles will be invited to the next meeting which will be held June 27, 2012, 8:00 AM at Cary Memorial Library in the Learning Center A motion was made, seconded and approved unanimously to adjourn the meeting at 10:30 AM. Robert W. Cunha, Chairman Michael McNabb, Appointed Member Robert Addelson, Ex Officio Member Joseph Foley, Elected Member Alan Fields, Appointed Member