HomeMy WebLinkAbout2013-05-23-RB-minMinutes of the May 23, 2013 Retirement Board Meeting
Present: Robert Cunha, Joe Foley, Alan Fields, Mike McNabb, Marguerite Oliva, Karen
Marchant, Absent: Rob Addelson
Bob Cunha called the meeting to order at 8:00 AM.
The Board accepted and signed the 053113 Warrant and May payroll. The April minutes
were reviewed and approved.
NEW MEMBERS: Lindsay Ong, Tech Maintenance Associate; David Bresnihan, Police
Officer; Sonia Deshmukh, Benefits Coordinator; Shawn Denehy, Custodian
RETIREMENTS: Lorraine Gryp, Human Resource Asst., 6130113
Henry and LouAnn from Meketa presented an interim report as of April 3 0, 2013. The
market value as of April 30, 2013 is $124.5 million up from $121 million on March 31,
2013. They reported aggregate assets as of 4130113 as well as underlying asset allocation
as of 3131113. Before White Oak and Monroe Capital representatives made their
presentations for Opportunistic Fixed Income, the Board discussed the possibility that
PIMCO All Asset would be the funding source and compared 5 %, 10% and 15%
allocations.
Landy Pheloung & Darius Mozaffarian made the White Oak presentation. White Oak,
centered in San Francisco, was started in 2007 and currently has 45 employees. There is
$1 billion in assets and the average fee is 1.65 %. The focus is on senior secured
collateralized loans with an average 3 years' duration. It was noted that most loans are
paid off within less than 3 years. The report outlined the historical and current
performance, the investment process and the portfolio allocation with a limit of 25% in
any sector.
Ted Koenig, founder and CEO, made the Monroe Capital presentation to the Board. Mr.
Koenig noted he was a CPA and lawyer and left the law practice in 1998, went to work
for Hilco Capital and founded Monroe Capital in 2004. Monroe Capital LLC and its
affiliates are 100% owned by senior management. The Monroe Capital Senior Secured
Direct Loan Fund LP is a $400mm investment fund. Fees are 1% levered and 1.5%
unlevered. The report included a report on the Monroe Capital team and history,
investment approach, investment track record and due diligence, monitoring and case
study.
After a discussion of the two companies, a motion was made by Alan, seconded by Mike
and unanimously approved to invest with Monroe Capital.
Alan feels that moving the entire $18mm PIMCO All Asset portfolio to Monroe is too
much. He proposed $6mm be invested with Monroe, $3mm moved to PIMCO Global
Multi Asset, $3mm to Wellington Opportunistic and $6mm to PRIT Hedge Fund. He
asked Henry and LouAnn to rerun the Expected Return and Risk report with the proposed
changes. He also asked the fee be confirmed.
Monroe documents will be forwarded to Mike Sacco for review.
The discussion of the special legislation for OPEB was tabled to the next meeting. Bob
asked that a copy be sent to Mike Sacco for review.
After reviewing the compensation consultant report, Karen has been granted a 7%
increase retroactive to 311113.
Sam Palmer and Charles Sortino being reevaluated by PERAC
Hartford and Loomis will be invited to attend the Board meeting on June 27.
A motion was made, seconded and approved unanimously to adjourn the meeting at
10:45.
The next meeting will be held June 27, 2013, 8:00 AM at Cary Memorial Library.
Robert W. Cunha, Chairman
Absent
Michael McNabb, Appointed Member
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
Alan Fields, Appointed Member