HomeMy WebLinkAbout2014-05-21-RB-min Minutes of the May 21, 2014 Retirement Board Meeting
Present: Robert Cunha, Alan Fields, Joe Foley, Rob Addelson, Marguerite Oliva, Karen
Marchant
Mike McNabb absent
I
Bob Cunha called the meeting to order at 8:00 AM.
The Board accepted and signed the 053014 Warrant and May payroll. The April minutes were
reviewed and approved as well as the cashbooks for March 2014.
NEW MEMBERS: (2) Earl Erickson, Keith McLaughlin DPW Laborer
DEATHS: Roberta Bosinoff, Librarian, 5/7114
Dan Sherman had provided the Board with a preliminary actuarial report for their review. Bob
requested a funding schedule be provided and Alan would like a management discussion &
analysis provided in the report including the effects of the last 5 years returns compounding at a
12%rate and the additional cost caused by the new mortality rate schedule. Dan also provided a
Police buyback proposal report that the Town Manager had requested. The report showed that
acceptance would benefit the Town. Motion by Joe seconded by Alan and voted unanimously to
accept the report. Acceptance is local option and will go to Town Meeting in the spring of 2015.
Rob presented a draft of the letter to be sent to Joe Connarton. The Board made some
modifications and would like Ken Donnelly and Jay Kaufman to be copied. Mike Sacco will be
contacted to request he survey other retirement systems for their response.
Julie Lind and Zela Astarjian from Rhumbline were present for their annual review. We are in
the Russell 1000 pooled index fund. It is a collective fund and we are 1 of 11 investors. They
reported the market value as of April 30, 2014 is $11,173,342. They also discussed the portfolio
characteristics, top 10 holdings, sectors weights, commissions, current profile and organizational
chart.
Mike Zinkand from Hartford was present for the annual review of the Capital Appreciation
Fund. In anticipation of Saul Pannell's retirement, Kent Stahl was hired as portfolio manager on
311/13 and took over 10% of portfolio. Currently he manages up to 25% and as of 6/1114 it will
be 51%. Saul will manage 49% and will give 12 months' notice of retirement. Mike also
discussed underlying strategies, manager selection and oversight process,key aspects, exposure
and performance. Annualized returns are 27.55% for one year and 13.94% since inception with
a market value of$18.1 million as of 4130/14.
LouAnn Eisenhut from Meketa presented the 3/31/14 quarterly review and the 4/30114 interim
report. As of 4130114 the market value was $133.5 mil up from $132.8 mil as of 3/31/14.
Performance was largely flat with a 0.1% for April. There is a higher exposure to international
equity because of underlying investments. A discussion followed on reallocation. For new
funds, Meketa is familiar with Vanguard Dividend Growth, Parnassus and Glenmede Large Cap
Equity and presented a memorandum explaining the fund which has high fees. Alan's idea is to
possibly take $5 mil from Hartford and $5 mil from Contrafund, which is 8% of domestic equity
and invest 2% each into Wellington Opportunistic, Acadian, Rhumbline and Glenmeade. Alan
asked LouAnn to create a report of how the volatility component is affected by investing the 2%
in each strategy. Meketa will begin the RFP process for a Large Cap Manager. Glenmeade and
Parnassus Investments will be asked to respond.
There was a request from Dave Hargrave for buyback of Middlesex County Call Firefighter
service. It is hard to determine what hours he worked because they were part time on an as
needed basis. The calculation would be prorated and Middlesex will not accept the service. In
keeping in line with the policy, the Board denied the request.
It was noted that Bob Cunha was unopposed in the election and will serve his 10t"term 711114-
6130117.
Memo #1312014 Board Member Training and Ethics Test Remainder were given to the Board.
A motion was made, seconded and approved unanimously to adjourn the meeting at 10:20.
The next meeting will be held June 25, 2014, 8:00 AM at Cary Memorial Library in the Learning
Center.
Absent
Robert Cunha, Chairman Michael McNabb, Appointed Member
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
Alan Fields, Appointed Member