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