HomeMy WebLinkAbout2010-05-25-RB-minMINUTES OF THE MAY 25, 2010 RETIREMENT MEETING
Present: Robert Cunha, Joseph Foley, Rob Addelson, Michael McNabb, Alan Fields
Marguerite Oliva
Bob Cunha called the meeting to order at 8:00.
The Board accepted and signed the 052810 warrant and the May payroll. The April
minutes were reviewed and signed.
New Members: Michael Bordenca, Dispatcher; Marc Valenti, Hwy. Superintendent;
Kevin Ciccone, Firefighter /Paramedic
Retirements: Phyllis Herda, Children's Librarian, 6/18/10; Zaven Kalpakdjian, School
Custodian, 8/27/10; Wayne Delaney, 6/26110, Asst. Fire Chief; John Vas sallo, Parks
Laborer, 5/31/10
Deceased Retiree: Theda Bentley, Opt. C Survivor, 4/22/10
Fran Peters from Meketa presented an interim review for April. April was a positive
month over all. May is down about 5% so far. The volatility is in line with what has
been seen in the last two years. The Retirement System's investment value at the end of
April was $101.2 million. He mentioned the slight rebalancing with funds being moved
from Hartford and Contrafund to PIMCO Global Multi Asset, Cash and on May 1, to
Wellington Opportunistic.
There was a general discussion about Beacon Capital. The biggest issue is the cost of the
collateralized loans that will come due in 2012. Beacon has moved to a special servicer
to try to extend loans and have submitted a plan to extend the terms of loans five years.
They are current on all loans. Regarding commercial real estate maturity, 55% was due
by the end of 12 /10 and now it is down to about 33% due at the end of April 2011 as they
were able to extend. The consensus is that we have probably seen the lows in value and
there is a low probability that we will assume a 40% loss. Real estate is showing some
signs of value stabilization. Beacon will continue to be discussed.
Alan asked about the Wellington Opportunistic Fund's positioning in light of what is
happening with the market. He mentioned that there has been quite a bit of change in the
last month. Fran stated that they have had good results so far this year, outperforming the
index by a percent. Historically Wellington has shown they have been able to make calls
at the right time. Meketa will be in contact with Wellington and update the Board as far
as their positioning.
In discussing other investments, Acadian has turned around somewhat this year and is up
4% and added some value to the portfolio; Matthews has added value; Artio has a macro
view and pulled back in emerging markets and there has been good results with Loomis.
Meketa is looking long term at emerging markets, fixed income in terms of diversifying,
high yield bond exposure and bank loans. Long term they are looking at infrastructure.
Mike asked about international small cap. Fran stated it is very local unlike large cap
which incorporates more global exposure. There is some international small cap
exposure in the Matthews portfolio.
The expected shortfall for June is $300,000. The Board was presented a spreadsheet
indicating the expected receipts and disbursements. The Board will determine which
funds to use to cover the shortfall at the June 17 meeting.
Rob brought up the point that health insurance for Marguerite was not being charged back
to the System as is her salary. It was decided that beginning July 1, 2010 the health
insurance will be reimbursed to the Town along with the salary.
Robert J. Martin and Bob Brazil became eligible for Option C pop -ups this month.
Buyback requests were granted for Karen Boodakian and Linda Labourene.
There are no anticipated changes to the reservations for the MACRS conference.
There still has been no PERAC response regarding Anthony Previte's 2009 over -
earnings.
A motion was made, seconded and approved unanimously to adjourn the meeting at
9:10 AM.
The next meeting will be held June 17, 2010 at Cary Memorial Library in the Learning
Center.
Robert W. Cunha, Chairman
Robert Addelson, Ex Officio Member
Michael McNabb, Appointed Member
Joseph Foley, Elected Member
Alan Fields, Appointed Member