HomeMy WebLinkAbout2014-04-24-RB-minMinutes of the April 24, 2014 Retirement Board Meeting
Present: Robert Cunha, Alan Fields, Joe Foley, Rob Addelson, Michael McNabb, Marguerite
Oliva, Karen. Marchant
Bob Cunha called the meeting to order at 8:00 AM
The Board accepted and signed the 043014 Warrant and April payroll. The March minutes were
reviewed and approved as well as the cashbooks for February 2014.
NEW MEMBERS: Alix Berube, Inspector of Wires; Linda ElAlami, SPED IA
RETIREMENTS: Joseph McLaughlin, Jr., Head Custodian, 711/14
Monroe Capital representatives, Ted Koenig and Sean Duff attended the meeting for their
annual review. As of 12/31/13 the annualized net investment income for the Monroe
Capital Senior Secured Direct Loan Fund (Unleveraged) LP was 4.44% with an
annualized sash on cash return of 3.97 %. Funds are currently 40% invested with 60% by
the end of the second quarter and 80% by year end. There are total investments of $212
million in 12 loans. 39% of commitment capital has been called as of 3131114. There
will be a distribution to investors by mid May. There are 12 deals in the fund now and
that number is expected to double. Banks budget and expected lose on loans of 100 —
200 basis points per year. Monroe has lost 45 basis points cumulative over 12 years.
Four deals out of 120 have defaulted. The report included a summary of the 12 loans as
well as individual loan overviews. All 12 companies had in internal rating of 2 -
"Exhibiting an acceptable level of risk that is similar to the risk at the time of origination.
Generally performing as expected or the risk factors are neutral to positive."
Joe Beauparlant from Loomis Sayles attended the meeting for an annual review. There
have been no changes to the portfolio team. Joe stated it is an interesting time for the
bond market. Tapering by the Feds has begun and will probably finish up by the end of
2014 and then tightening will begin causing interest rates to rise. Loomis Credit Asset
has a customized benchmark of 50% Barclay's, 25% High Yield and 25% S& P Bond.
The net portfolio for 3131114 was 4.39 %, 7.38% for two years, 6.89 for three years and
9.14% annualized for 10/15/09 — 3/31/14. The market value as of 3/31/14 was
$10,042,123.
Meketa presented their update. Market value as of 3131/14 was $132.8m down from
$133.2 on 2/28/14. The search for Senior Direct Lending Manager was discussed. Henry
presented a list of six managers that might be of interest. More due diligence would have
to be done once RFP's are completed. No request for RFP posted yet.
Alan suggested adding to the Hedge Fund portfolio but it was noted we are at the
maximum allowance at this time.
LouAnn discussed a potential new allocation of transferring assets from RhumbLine to
Fiduciary and Wellington Opportunistic which would increase domestic equities to 39%
from the current 36 %. It was noted in the report that RhumbLine has a $5m minimum for
their commingled fund and a minimum fee of $10,000.
Mike suggested transferring some funds to a fund similar to Monroe. Alan is not
comfortable with adding another debt manager.
The next agenda will include discussions of decreasing RhumbLine and transferring
funds to Wellington & Fiduciary or Harford, the possibility of adding more managers and
reducing Loomis.
The Board discussed the educational credits requirements and Joe Connarton's response
to tailoring the requirements to include the over site compliance requirements for Mike
and Alan. It was noted that Mike and Alan's requirements are an asset to the Board.
Mike and Alan will put together their requirements.
The Board asked that Mike Sacco be asked if the requirements are statutory or regulation.
It is felt the education requirement is statutory but the choice of course offerings is
regulated by PERAC. Alan also questioned if the PRIT Board members have the same
requirement. If so, then the requests will stop there.
Rob would like to send a letter to Joe Connarton to get the Board's position on record.
Bob suggested sending the letter to the Commission. Rob will present a draft at the next
meeting.
The Fidelity Plan Expense Reimbursement of $11,786 was received and the 411 qtr Town
Appropriation was wired to State Street.
Carl Valente was approached by the Police Union to see if the Town would adopt Ch.
235 of the Acts of 1994 which would allow police who had been laid off through a
reduction in force and then reinstated within 3 years to be allowed to buyback time.
Acceptance is local option. Carl would like Rob to request information from Ilan
Sherman of the cost for 5 — 7 members. Mike is concerned this may set a precedence and
questioned if this would be open -ended or only for the members in question. A copy of
the legislation will be forwarded to the Board.
Town Meeting has appropriated $1,119,000 for the OPEB Fund for July 1, 2014.
A motion was made, seconded and approved unanimously to adjourn the meeting at 10:00.
The next meeting will be held May 21, 2014, 8:00 AM at Cary Memorial Library in the Learning
Center. RhumbLine and Harford will be requested to attend.
Robert W. Cunha, Chairman
Michael McNabb, Appointed Member
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
Alan Fields, Appointed Member