HomeMy WebLinkAbout2011-07-28-RB-minMINUTES OF THE JULY 28, 2011 RETIREMENT MEETING
Present: Robert Cunha, Joseph Foley, Alan Fields, Rob Addelson, Michael McNabb,
Marguerite Oliva
Bob Cunha called the meeting to order at 8:00.
The Board accepted and signed the 072911 warrant and July payroll. The June minutes
were reviewed and signed.
New Members: (11) Virginia Gillis, School Exec, Admin. Asst.; Roberta Wanyo; School
Admin. Asst., Nicole Dillon; Emily Gardner, Georgia O'Keefe, Laura Walley, Rebecca
Washburn, Heather Weake, Student Support Instructors; Cheryl Kelleher, Asst. Database
Administrator; Anthony Lucreziano, Custodian; Susan Hayes, Fire Admin. Clerk
Retirements: (3) Nadine Wright, Police Office Mgr., 811111; Pauline Burke, DPW office
Mgr., 815111; Cathy McCaffrey, Aide, 6/30/11
The ongoing problems with cash shortages were discussed. The Board would like to
review the actuarial study to determine the number of participants with each deduction
rate knowing that the members having 9% deducted will be funding their own retirement.
The possibility of buying a bond to use to cover the shortages was discussed. It was
mentioned that the amount of the normal costs plus $750,000 could be added to increase
the fixed income portfolio and this could be used each time funds are required.
The unanimous decision is to withdraw needed funds from Loomis Sayles Credit Asset
Trust account as needed. The Board will rebalance the portfolio and funds will be
transferred to Loomis to maintain a balance.
Siobhan Kranz from Artio Global Management attended the meeting for a review. The
market value as of June 30, 2011 was $4,503,848. Artio uses a top -down approach in
emerging markets and a bottom -up approach in developed markets. She spoke of the
challenges faced in 2008 and the global sell off as well as the rebound in 2009.
Developed markets outperform emerging markets. Whereas material stock selection was
the most significant detractor, the decision to underweight in financials helped. Selection
in the Industrial stocks was the largest positive contributor with the focus on airports and
seaports. Emerging markets underperformed developed markets year -to -date.
The largest sector holdings were with consumer discretionary and materials and the
smallest holdings were in utilities and telecommunications due to a negative outlook.
The firm's investment team added three new professionals in 2010.
The Vanguard balance was $1,560,928 as of 6130111 and an additional $500,000 was
wired to the Vanguard's Wellington Fund Admiral by the Town.
PERAC sent 2010 overearnings information on James Weston. His pension will continue
to be withheld.
It was determined that investing with First Eagle or Aberdeen Global Equity would not
produce any major changes to the portfolio. The Board discussed investing 10% of the
portfolio in PRIT's hedge fund sector. Mike said he would call Paul Tedesco to
determine when the Board could invest with PRIT and to discuss the investment firms
PRIT uses for hedge funds.
Matthews International Fund managers will be asked to participate in a conference call
during the August 31 meeting.
The Board awarded a 2% increase to Maggie for FY' 12. A request will be sent to other
administrators asking if any have a Policy and Procedure manual created for their office.
Work will begin on constructing a manual for the office with more information then is
currently on hand.
Sarah King from PERAC called. The letter that Mike Sacco sent in March 2010
regarding Anthony Previte's 2008 overearnings was just found and has been sent to the
Legal Department for review and reply.
Future meeting dates are set for Sept. 28, Oct. 27, Nov. 28 and Dec. 22 at Cary Library.
A reminder will be sent to Town and School HR that eligibility hours have been
increased to 20 hour per week. Records will be checked for those recently hired.
A motion was made, seconded and approved unanimously to adjourn the meeting at
10:00 AM.
The next meeting will be held August 31, 2011, 8:00 AM at Cary Memorial Library in
the Learning Center.
Robert W. Cunha, Chairman
Michael McNabb, Appointed Member
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
Alan Fields, Appointed Member