HomeMy WebLinkAbout2016-03-24-RB-minMinutes of the March 24, 2016 Retirement Board Meeting
Present: Robert Cunha, Joe Foley, Fred Weiss, Marguerite Oliva, and Karen Marcbant
Alan joined the meeting by conference phone, Rob Addelson absent
Bob Cunha called the meeting to order at 8:00 AM.
NEW MEMBERS: (5 ) Brittany Medeiros, SPED IA; Anthony Modoono, Patrolman; Stacey
Meninno, Library Technician; Sara Robertson, SIA; Diahanne Lucas, Library Support
DEATHS: Robert Brazil, DPW Mechanic, 2/14/16; Elizabeth Cadario, Secretary, 3/16/16; James
Kilmartin, Captain, 3/22/16
RETIREMENTS: Arthur Raithel, Fire Captain, 5/1/16
The Board accepted and signed the 033116 Warrant and March payroll. The February 2016 minutes were
reviewed and approved as well as the cashbooks for January 2016.
The Board discussed Gov. Baker's amendment to FY' 16 S. 23B(k)(6)(i) to extend the length of
vendor contracts from 5 to 7 years and voted unanimously to extend for two years the contracts
for Atty. Michael Sacco, Actuary Dan Sherman and custodian State Street. Meketa will check
on extensions for investment companies.
Steve McLellan presented an interim update as of 2/29/16. The market value dropped
approximately .5% from the end of January. March has been very positive. Matthews fell 3.9%
but still beat the benchmark and Acadian did well. William Blair has been performing poorly
and Meketa is watching them closely.
Steve discussed the manager search for Core and Core Plus Real Estate. The system has a 5%
target allocation. Currently the System has $1.3m invested with Beacon Capital, about 1% of the
system. Meketa received nine responses to the RFP. Of the nine, Mekata rated three as "highly
advantageous "; Heitman Capital Management, Investors Diversified Realty and LaSalle. Steve
also mentioned Intercontinental Real Estate Corp. which was rated as "advantageous ". The
ratings are based on the organization, team, investment philosophy, performance and terms.
Information included a chart showing the annual performance from 2007 ---- 2014 of all nine
responders.
Steve discussed the PRIM real estate investment after Alan asked if PRIM offered one. The
investment is in private real estate, there is no minimum amount required to invest, it is an easy
way to get into real estate, can be liquidated monthly and there is no lockup. Alan suggested that
Meketa research the fund and if the record looks good, to start the commitment with PRIM. The
Core Real Estate search will be put on hold.
The Hartford Capital Appreciation Fund review was presented by Brian Kraus. There has been
no management changes and the fund benefited from a stock picking environment. In 2015 the
fund returned 1.73% while the Russell 3000 TR USD benchmark returned .48 %. Brian
discussed the strategy selection of the senior managers, Kent Stahl and Gregg Thomas as well as
the underlying strategies or the other managers. The Strategy Selection and Oversight Team led
by Kent Stahl are responsible for selecting and monitoring the strategies. The report listed the
top ten holdings with Bristol -Myers Squibb bring the largest and the sector weights with
consumer discretionary being the most over - weighted and energy being them most
underweighted.
2016 started slower but the fund is showing an improvement in March. Privately held companies
are positive with UBER showing a 40% return. Health care and information technology have
also done well. The underweight in industrials detracted from the portfolio.
There was a White Oak distribution of $493,304.91, and two calls for $58,955 and $110,578.
There was also a Golub call for $100,000.
Dan Sherman will be attending the May meeting to discuss the "once a member" issue. When
queried, he responded that he had not done a study on his issue. He feels the size of the liability
is small and the impact on the system is minimal. He will also discuss decreasing the assumption
to 7.5%
There is nothing new to report on the Creedon or O'Leary DALA cases.
There are investment calls for Golub on March 31 for $100,000 and White Oak on April 5� ` for
$110,578.
The Board did the 3/1/16 review for Karen. It was noted that she would like to have her title
changed to Assistant Administrator and she requested a double step increase and more hours as
she feels she is doing more work than an assistant. The Board noted they do not want to increase
her hours at this time as the 18 hours per week seems sufficient and they will address the title
change at another time. They unanimously voted to move her to step 5 grade 4 and carry over
the COLA granted last July. She will also receive the July 2016 COLA when granted to LMEA.
Loomis will be asked to attend the April meeting for a review.
A motion was made, seconded and approved unanimously to adjourn the meeting at 10:25.
The next meeting will be held April 27, 2016, 8:00 AM at Cary Memorial Library.
Robert Cunha, Chairman Alan Fields, Appointed Member
Absent
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member