HomeMy WebLinkAbout2012-11-28-RB-minMinutes of the November 28, 2012 Retirement Meetings
Present: Robert Cunha, Rob Addelson, Joe Foley, Mike McNabb, Marguerite Oliva
Absent: Alan Fields
Bob Cunha called the meeting to order at 8:00 AM.
The Board accepted and signed the 113012 Warrant and November payroll. The October
minutes were reviewed and approved.
New Members: (9) Ashley Mulkay, Jesse Sullivan, SSI's; Sheila Busa, Receptionist;
Laurie Renna, Vicki Gerry, IA's; Thomas Geary, James Coughlin, Custodians; Kurtis
Mazzone, DPW /Mechanic; David Laing, Electrician
Retirements: Judy Dec, Library Technician, 115113
Two buybacks were accepted. Teresa Koba was a part -time aide prior to becoming a
member, seeking a buyback for 8 years, 9 months and Kathy Carcione was a part -time
secretary, now working full time, seeking a 9 month buyback.
Notification from PRIM was received regarding the Private Equity Commitment
Deadline of December 31, 2012. Mike feels the Board will probably not invest at this
time but will discuss this matter with Alan.
There was a discussion regarding the latest invoice from Buck for $18,378. $10,000 was
for the Stochastic report. The Board feels this is an excessive amount and that there
should have been notification prior to the invoice being sent. The Buck contract and the
amount budgeted for the 111112 study was $12,000. Thru 10131112, invoices totaling
$16,977 have been paid. The total including the newest invoice will bring the year to
date to $35,355, 3 times the budgeted amount.
Rob mentioned the Town is willing to reimburse the Retirement System for part of the
invoice because some of the extra reports were for the Town's benefit. Mike will contact
David Driscoll for a breakdown of the amount and to see if Buck will be willing to
reduce the amount. Once Mike informs the Board of Buck's decision, Rob and Maggie
will ascertain the amount the Town should pay.
The Board voted last month to decrease the assumption rate to 7.75% and increase the
schedule to 2030. Rob spoke with David Driscoll to see if PERAC would accept some
smoothing for the first couple of years. Maggie was asked to check with David to see if
Jim Lamenzo is in agreement. Town Meeting voted to appropriate an additional $1
million for FY' 13.
Mariko Boswell and Alan Isenberg from PIMCO attended the meeting for the annual
review. Mariko presented the All Asset Fund review. As of 10/31/12 the All Asset Fund
after fees has increased 12.5 %. Value is added by tactical asset allocation through broad
opportunities including strategies that are inflation related, U.S. equity, global equity,
alternative, short -term, U.S. core and long maturity bond, EM and global bond and credit.
The strongest earners have been EM and global bond strategies and Global equity
strategies. Since December 2011 there has been an increase in EM and global bond
strategies and a decrease in inflation related strategies.
Alan Isenberg presented the Global Multi -Asset Fund review. As of 10/31/12 the fund
increased 6.8% after fees. The volatility of the fund is 60% stocks and 40% bonds. The
managers strive for an 8 %--10% return. The contributors to the fund included allocations
to U.S. equities, developed and emerging markets and EM bonds. Tactical shifts
included tactically increasing equities thorough positions in S &P 500 while maintaining a
significant position in emerging market equities and decreasing duration and diversified
spread exposure in fixed income. Global economic. growth remains a concern and
uncertainties persist due to structural issues. PIMCO expects the fiscal cliff to reduce
GDP by approximately 1.5% in 2013. In reviewing the fiscal cliff, PIMCO sees more
agreement then disagreement between the republicans and democrats. They feel
Congress will reach a short -term deal which will avert a fiscal collapse and would be
accompanied by a promise for future reform. A housing recovery is possibly looming.
There has been a prolonged period of excess demand relative to supply due to years of
limited construction and now inventory is coming down.
A conference call with Martin Curiel from Matthews Asia was held for the annual
meeting of the Matthews Pacific Tiger Fund. There are 34 investment team managers
and there have been no changes in management since the last review. They are meeting
more frequently due to the unrest. They believe in a long -term focus on Asia with
bottom -up research. Since inception the fund has returned 4.03% beating the MSCI AC
Asia ex Japan Index benchmark of 3.89 %. The average annual total return year to date is
15.35 %. The fund is underweighted in energy, materials and industrials and over
weighted in consumer staples, consumer discretionary, utilities and health care.
There is a slight increase to S.E. countries like Indonesia, and Vietnam with a bias in the
small and midcap range and underweight in large cap. The largest countries are China,
Hong Kong and India with an over weight of 8% in India.
It is believed that there will be slower growth. Chinese workers are requiring higher
wages and better working conditions. The Chinese consumer is making more money so
consumerism is increasing and higher quality is expected. Western debt, unemployment
and stimulus policies will continue to distract investors.
Acadian reported a change for the administrator of the fund to BNY Mellon from Old
Mutual Asset Management Trust Company effective January 1, 2013 due to notification
from the Trust Company of a significant increase in fees. There are no changes to the
investment process or team that is responsible for managing the investment.
Loomis Sayles announced an organizational change to bring equity and fixed income
groups together under the leadership of CIO Jae Park. If the Board wishes not to remain
invested in the fund due to the changes, the shares can be redeemed as of Dec. 14 and
the required advanced notice of redemption will be waived.
Wellington announced an addition to the portfolio management team. Long -time Partner
of Wellington Management Mark Lynch has joined the Opportunistic Investment
portfolio team. Mark will work with Scott Elliott and Brian Garvey on thematic research
and will assume co- portfolio management responsibilities with Scott and Brian during the
first half of 2013.
Beacon sent a distribution notice and notices on the impact of Hurricane Sandy on
properties held in Boston, Downtown NY, Washington D.C. and Northern Virginia.
The New York property, 32 Old Slip, was the only property that was significantly
impacted. On Nov. 27 a memo was sent with a brief update on the progress to date.
Meaningful progress has been made in preparing the building for occupancy, which
Beacon hopes will occur the week of Dec. 10"'.
Beacon Capital representatives will be attending the December meeting for the annual
review.
A motion was made, seconded and approved unanimously to adjourn the meeting at
10:00.
The next meeting will be held December 20, 2012, 8:00 AM at Cary Memorial Library.
Robert W. Cunha, Chairman
Robert Addelson, Ex Officio Member
Absent
Michael McNabb, Appointed Member
Joseph Foley, Elected Member
Alan Fields, Appointed Member