HomeMy WebLinkAbout2011-12-23-RB-minMinutes of the December 23, 2011 Retirement Meeting
Present: Robert Cunha, Rob Addelson, Joe Foley, Alan Fields ,Michael McNabb,
Marguerite Oliva
Bob Cunha called the meeting to order at 8:00 AM.
The Board accepted and signed the 12/29/11 Warrant and December payroll. The
November minutes were reviewed and signed.
New Members: (4) Victoria Tassone, Heather Leonard, HASA; Brendan Carr,
Dispatcher; Jeanette Rebecchi, Transportation Coordinator
Retirements: (3) Ron Russo, DPW Parks, 113112; Charles Toomey, DPW Water
Foreman, 113112; Robert Simmons, Police Lieutenant, 1130/12
Deceased: (4) Susanna Banks,School Lunch, 10/31/1, Opt. A; John Vassallo, DPW,
111/29/11, Opt. C; Mary McDonough, Town Clerk, 1218111, Opt. B depleted; Marion
Snow, Secretary, 12115/11, Opt. A.
Henry Jueng from Meketa presented the interim review for November 30, 2011. The
market value as of November 30, 2011 was $103.3 million down from $105.9 million on
October 31, 2011.
A response was received from PERAC denying the Board's request to allow the Board to
invest in ETF's without undertaking a search. Joe Martin in his response stated, "The
proposed investments represent a direct investment by the LRB which is not permitted by
Chapter 32 and "PERAC" Investment Regulations." It was decided to not to go forward
with the RFP process for ETF funding.
After much discussion of the current portfolio and where the Board felt it should be
positioned, Alan stated there had to be a plan in place before leaving the meeting using
the current holdings to reduce the international exposure.
The Board agreed to transfer funds from the Wellington Opportunistic Fund to PIMCO
All Asset Fund and to transfer funds from Acadian and Artio and move those funds to
Fidelity Contrafund.
A motion was made by Rob to transfer 3 % of the Wellington Opportunistic Fund to the
PIMCO All Asset Fund and transfer 3% from both Acadian and Artio to Fidelity
Contrafurnd. It was seconded by Bob and unanimously accepted. This rebalancing will
create less global equity risk.
A motion was made by Alan, seconded by Rob and unanimously accepted to initiate
formal searches for long -only domestic equity managers and long -only global equity
infrastructure managers. Proposals are to be either commingled accounts or mutual
funds. The funding for the global infrastructure would be from the domestic portfolio
with an anticipated investment of $3 - $4 mm.
The high quality domestic equity hiring of 2 or 3 new managers will result in greater
manager diversity. Approximately $7 mm will come from international equity assets,
decreasing that exposure.
There was a discussion of the PERAC memo #38 regarding mandatory training for board
members which requires each member to undertake IS hours of training over the course
of their term. Mike asked that Maggie check with PERAC to see if on -going training for
Securities licensing meet the requirements. He also asked that the Board be notified on
upcoming training dates. Also discussed were PERAC memos #35 & 436 regarding
pension reform governance as well as Mike Sacco's e -mails regarding the RFP process
requirements.
The Board unanimously voted to re- appoint Alan Fields for a fifth term running from
1121112 — 1120115.
Joe Foley was re- elected for his third term running from 12/30/11 — 12129114.
Contract amendments for Atty. Michael Sacco and for Pension Technology Group were
signed. The term for the amendments are 12/31/2011 — 1213112016.
A motion was made, seconded and approved unanimously to adjourn the meeting at
10:45 AM.
The next meeting will be held January 26, 2012, 5:00 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