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HomeMy WebLinkAbout2013-08-21-RB-minMinutes of the August 21, 2013 Retirement Board Meeting Present: Robert Cunha, Joe Foley, Rob Addelson, Mike McNabb, Marguerite Oliva, Karen Marchant; Absent: Alan Fields Bob Cunha called the meeting to order at 8:00 AM. The Board accepted and signed the 083113 Warrant and August payroll. The July minutes were reviewed and approved. New Members: (17) Sean Wilson, Facilities Custodian; Thomas Crehan, Plumber; Alison Kaplan, Emma Keilty, Kathleen Williams, Ashley Lawton, Cynthia Gouldrup, SSI's; Donna Coe, School Finance Clerk; Christine Blake, Elizabeth Thompson, Patricia Argentina, ASA; Janice Griffin, Julia Lattimer, Bryan Rotundo, SPED IA Emily Zehngut, IA; Sarah Robson, Asst. Database Admin; Martha Lamb, SCTA Deaths: Margaret Magner, Library Tech. Opt. B depleted, 8110113 The Board reviewed the "Medical Panel Review" for Dan Griffith. The three doctors are unanimous that he is unable to perform the essential duties of his position. A motion was made by Bob, seconded by Mike, and approved unanimously to accept the findings. The necessary documents will be forwarded to PERAC for review. PIMCO representatives Iggie Galaz and Sasha Taicott were in attendance for an annual review for the All Asset and the Global Multi Asset Funds, The All Asset Fund is structured such that Research Affiliates founded by Rob Arnott in 2002 acts as a sub - advisor on tactical asset allocation decisions and PIMCO is the active manager of the underlying funds. There is a 60140 split with US equity risk. The core stocks provide economic growth with a disinflationary bias, core bonds reduce volatility and provide income and the portfolio diversifiers provide low, negative correlation and have inflationary bias. The market value of the All Asset Fund as of June 2013 was $17,861,061. YTD as of July 13, 2013 the fund is -1.4% before fees. Areas of emphasis are EM and global bonds, credit, EM equities, and alternatives. All Asset de- emphasizes U.S. equities, U.S. Tips and commodities. The fund is positioned to weather stock market volatility and capture returns more evenly over the full year. The Global Multi Asset Fund is broad and global to maximize opportunity and diversification potential using individual securities, PIMCO mutual funds, PIMCO ETF's and non - PIMCO ETF's. The value as of July 2013 was $16,868,729. YTD the fund after fees is -6.6 %. The Vanguard overview report for Wellington Fund Admiral Shares was reviewed by the Board. After reviewing the total returns, Mike requested Vanguard be contacted to see if there are similar funds the Board could invest with that might mimic the OPEB fund. Mike asked that Meketa be contacted to produce a report looking ahead to how we will be positioned once the $6mm investments to both Monroe and PRIT Hedge Funds are completed. He also said he does not want to invest any more funds with PIMCO Global at this tinge. If notified of a Beacon property sale, the Board would like the amount due Lexington be netted to offset the next Beacon call. The Beacon amount still outstanding is $980,000. Bob asked that once the Beacon commitment is completed, would there be more investments in real estate. Mike said he still likes real estate because of the leverage. Bob began a discussion on making direct deposits mandatory for retirees. It was noted that there are still 23 retirees who receive a check. Information is sent each year to retirees who get checks of the pros of having direct deposit along with a Direct Deposit authorization form but it was noted that some refuse to change. A motion was made by Joe, seconded by Bob and approved unanimously that as of January 2014, all new retirees must have direct deposit. Reports of the educational credits earned to date by the Board members were given to each member for review. PRIT representatives Mike Trotsky and Eric Nierenberg will be attending the September meeting. The investment forms were signed for the PRIT Hedge Fund. $bmm will be invested by October 1. The administrator's review was put on hold to the September meeting. A motion was made, seconded and approved unanimously to adjourn the meeting at 10:15. The next meeting will be held August 21, 2013, 8:00 AM at Cary Memorial Library in the large meeting room. Robert W. Cunha, Chairman Robert Addelson, Ex Officio Member Absent Alan Fields, Appointed Member Michael McNabb, Appointed Member Joseph Foley, Elected Member