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HomeMy WebLinkAbout2012-06-27-RB-minMinutes of the June 27, 2012 Retirement Meetings Present: Robert Cunha, Rob Addelson, Joe Foley, Alan Fields, Michael McNabb, Karen Marchant Bob Cunha called the meeting to order at 5:00 AM. The Board accepted and signed the 6/29112 Warrant and June payroll. The May minutes were reviewed and approved. New Members: Bonnie Benson, Student Support Instructor; Kimberly Orr, Jeffrey Chaisson, Bruce Cleaver, Police Officers; Michael Stevens, Firefighter Henry Jaung and LouAnn Fisenhut from Meketa presented an interim update as of May 31, 2012. They reported the market value was down 5.2% from $111.9 million to $106.1 million. A breakdown of asset allocation was provided giving the target allocation, % of the retirement system and target range as well as manager and underlying allocation. A GTAA review was also presented highlighting a rolling 12 month window, beta analysis, standard deviation and risk budget. The importance of having to show and defend why we aren't in PRIM was discussed and the need for better clarification on some charts from Meketa was requested, in particular a revision to the asset allocation chart. It was also requested Meketa present a summary of investment return assumptions at the next meeting. Joe Beauparlant from Loomis Sayles presented an annual review highlighting firm overview, product offerings, investment process, fund guidelines and calendar year returns. He reported that the performance of the fund was up 5.31 % year to date and was in the recovery stage of the cycle. Corinne Larson from State Street Global Advisors presented an annual review highlighting investment summary, the global fixed income group and the composite performance. She reported the market value as of 5/3/12 is $2,591,961 and the yield on mortgage portfolio is 2.38 %. The board discussed a format change for meetings. It was agreed to address agenda items first and have Meketa arrive later for investment discussion. Bob reported that the compensation consultant is almost done and will hopefully have the results for the next meeting. There is a request from MTRS to see if we will accept liability for 11 months of service, from 6/1/94 - 7/31/95, for a former tutor that should have been paying into Lexington instead of OBRA. The deferred camp company was to forward a check for the tutors in question but it never happened. After some discussion the Board had concerns about taking on the additional liability without knowing how many people it will affect. The board would like Maggie to contact school superintendent Rob Harris to find out how many people this will affect. The actuarial will be done for the August 23 meeting. David Driscoll from Buck will be contacted and will run a valuation based on 8 — 7.5 — 7 assumption rates. It was noted that $250,000 was transferred from Contrafund to cover the June shortfall and the FY13 1 St qtr appropriation of $1,031,174 will transfer in July to State Street. The next meeting will be held July 26, 2012, 8:00 AM at Cary Memorial Library in the Learning Center. No investment managers to be invited. A motion was made, seconded and approved unanimously to adjourn the meeting at 10:30 AM. Robert W. Cunha, Chairman Robert Addelson, Ex Officio Member Michael McNabb, Appointed Member Joseph Foley, Elected Member Alan Fields, Appointed Member