HomeMy WebLinkAbout2014-03-31-RB-minMinutes of the March 31, 2014 Retirement Board Meeting
Present: Robert Cunha, Joe Foley, Rob Addelson, Michael 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 033114 Warrant and March payroll. The January minutes
were reviewed and approved as well as the cashbooks for January 2014.
NEW MEMBERS: (6) Emily Smith, Library Head of Technology: Nickysson Mancini,
Arthur Summers, Frederick Martin, Custodians; Lorraine Garrett, Administrative Assistant;
Christopher Burnham, Firefighter /Paramedic; Jordan McCarron, Conservation Stewardship
Program Coordinator
DEATHS: Mary Radz, IT Director, 2/28/14; Darrell Cain, Engineer, 3118/14
Sergio DeMango attended the meeting to request his group classification be changed to
Group 2. He presented a new job description as well as copies of his Journeymen and
Master Electricians' licenses. After reviewing the documentation, the Board
unanimously voted to grant his request.
Henry Jaung & LouAnn Eisenhut presented the March 31, 2014 update. The market
value as of 2/28114 was $133.2, an increase of over $4mm since 1/31/14.
Henry said Meketa could do an optimization study and Mike mentioned optimization of
bonds does not work. The Board reviewed the actual allocation of the portfolio and then
studied the potential new target allocation which would decrease U.S.Equity and increase
Emerging Market Equity, Core Fixed Income and Value Added Fixed Income. The
expected 20 year return would be 7.9% which is the same as the current actual allocation.
When studying the actual asset allocation, the 78% in total equity appeared high but that
figure included 10% Hedge Funds. Alan was more comfortable with the aggregate asset
summary report which indicates public equity at 67 %. Alan mentioned that the PRIT
returns should not be used as a guideline. It is more observational.
Alan asked Meketa to consider looking at Core Fixed Income instead of Value Added
Fixed Income. They spoke about decreasing Core FI from 7% to 4% and moving 2%
from equity to Hedge Funds. The Board discussed being more defensive by using
Wellington Opportunistic Fund. Rhumbline would be the funding source and the $5m
could be moved to FMI and Wellington Opportunistic. Alan asked Henry to present a
study of how the portfolio would look by transferring the funds from Rhumbline to FMI
and Wellington Opportunistic and to also present an updated study on FMI and
Wellington.
The Board requested Meketa undertake a search for fixed income managers similar to
Monroe and similar to Wellington Opportunistic. Mekata will research and set up RFD's.
Bob questioned if the Board would look for another real estate fund after Beacon closes.
Alan said that if the Board decides to invest in another real estate fund there would be no
return of the investment for at least five years.
The Board discussed Karen's increase. An earnings report of other retirement assistants
was presented along with the LEMA step chart. Her hourly rate was increased to $26.47
and she will receive the COLA in July. Vacation will remain at three weeks and there
will no longer be any comp time granted for attending conferences.
There was a class action settlement for Wellington Enduring Assets of $1,023.63 which
was re- deposited into the Wellington Enduring fund. Distributions were received from
Monroe, $29,604 and Beacon, $41,584.16. Funds will be left on account in the State
Street account to help defray monthly costs.
The upcoming election posting was done on March 27 for Bob's seat on the Board. His
term expires 6130114.
Monroe representatives will be attending the April meeting and Loomis representatives
will be requested to attend.
The Board was presented with notices from PERAC of educational credits earned to date.
The Board will be notified as soon as the PERAC memo for 2nd quarter credits is
received.
A motion was made, seconded and approved unanimously to adjourn the meeting at 10:00.
The next meeting will be held April 24, 2014, 8:00 AM at Cary Memorial Library in the Learning
Center.
Robert W. Cunha, Chairman
Absent
Michael McNabb, Appointed Member
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
Alan Fields, Appointed Member