HomeMy WebLinkAbout2014-06-25-RB-min Minutes of the June 25, 2014 Retirement Board Meeting
Present: Robert Cunha, Alan Fields, Joe Foley, Rob Addelson, Marguerite Oliva, Karen
Marchant; Absent: Mike McNabb
Bob Cunha called the meeting to order at 8:00 AM,
The Board accepted and signed the 063014 Warrant and June payroll. The May minutes were
reviewed and approved as well as the cashbooks for April 2014.
NEW MEMBERS: (2) Michael Donegan, Print Shop Technician; Michael Fratus, Custodian
RETIREMENTS: (4) Priscilla Kinney, School Secretary, 6/27114; Susan Kasilowski, Sped.
Asst., 6130114; Sue Wiseheart, Sped, Asst, 6130/14; Mary Lou Chamberland, Admin, Asst
7/10114
LouAnn Eisenhut and Henry Jaung from Meketa presented the May 31 Interim report. The
market value on 5/31114 was $135.8m, an increase of$2.3m from 4130/14.
After last month's discussion of moving funds from Hartford and Conrtafund to Wellington
Opportunistic, Acadian, RhumbLine and Glenmeade, LouAnn's study showed that there would
be no difference in the portfolio. She noted that Hartford did better than Contrafund due to
Hartford's International exposure.
A discussion of the weighting of the portfolio followed. The normal portfolio has a 60/40 split.
Lexington's now is roughly 70/30, above the System's target. Alan asked that Meketa run a
report comparing Lexington to the norm.
The lack of volatility is a concern to the market. Investors seem to be looking for an excuse to
sell but bad news has not driven the market down.
Henry spoke of the faith Meketa has with Wellington Opportunistic and said they should be able
to protect the portfolio. The Board discussed dropping the equity 34% and it was determined
that no new managers are currently needed. The Board is at the maximum allowed with the
PRIT Hedge Fund.
Enduring Assets have done well this year and Henry said this is the closest to a Mass. Limited
Partnership (MLP)that the Board can get. He feels transferring funds to Enduring Assets is
better than Fiduciary.
Alan made a motion to take 2% of the portfolio from both Hartford and Contrafund and transfer
the funds to Wellington Opportunistic Fund and Enduring Asset Fund. The motion was seconded
by Joe and voted unanimously to accept.
Henry asked the Board to consider looking at other Real Estate investments by the end of the
year as the commitment with Beacon will be closing. Alan Leventhal will be asked to attend the
July 23`d meeting.
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PRIT's holding in timber was discussed and it was noted that it is part of the entire PRIT
portfolio and not a single investment within which retirement systems can invest.
Alan spoke about Hadley Harbor, a new Wellington product that will be overseen by Saul
Parnell and the group will consist of the best analysts from Wellington.
The Board reviewed the actuarial reports and Rob will speak to Carl to see if Dan Sherman
should run some other scenarios before Dan attends the July 23`d meeting.
Bob started the discussion of increasing the COLA base to $13,000. The Pension Holiday and
ERI will be completed in FY'15. The increase to the appropriation will be approximately
$125,000, 1% of the fund. If the actuarial report showing $150,000 incremental increases is
adopted, the schedule will be shortened to 2026.
There has been no response to the letter sent to Joe Connarton on May 22, 2014 discussing the
concerns the Board has about on-going training requirements and the request that Joe attend a
Board meeting. A motion was made by Rob, seconded by Joe and adopted unanimously that a
follow-up letter will be sent with Sen. Donnelly, Rep. Kaufman, Carl Valente and the Chairman
of the Selectmen being ec'd on the letter.
Alan asked that a report showing the year net out amount be determined.
Disability retiree Charles Sortino is to be re-examined by PERAC.
Tom O'Donnell has asked that the Board host a PERAC Legal Panel on September 30th in the
evening. Board members attending will be granted 3 credits toward the educational
requirements. It will be held in the Selectmen's Meeting Room from 7-9 pm.
An Administrator's compensation study has begun.
A motion was made, seconded and approved unanimously to adjourn the meeting at 9:26.
The next meeting will be held June 25, 2014, 5:00 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