HomeMy WebLinkAbout2016-09-22-RB-min
Minutes of the September 22, 2016 Retirement Board Meeting
Present: Robert Cunha, Alan Fields, Joseph Foley, Fred Weiss, Marguerite Oliva
Absent: Rob Addelson
Bob Cunha called the meeting to order at 8:00 AM.
NEW MEMBERS: (31) Robert Cotter, Water & Sewer Laborer; Sara Calvino, School Admin.
Asst.; Rachel Alexander, Jennifer Arhtur, Abigail Ayres, Cindy Bosco, Katherine Cashman,
Samantha Collyer, Christine Doherty, Christine Dube, Stephanie Fenerlis, Sara Haegeli, Connie
Mar, Mary Marifiote, Linda Mayer, Pamela Meppelink, Joseph Meyer, Meghan Mulrenan,
Anders Nordquist, Madeline Pennebaker, Kristen Perriello, Melissa Peterkin, Valerie Richkin,
Christina Russell, Kristi Schell, Lisa Soulier, Kathryn Springer, Gail Vlachos, Rebecca
Wangerin-Wolfe, SIA’s; Marissa Achin, Hannah Kelly, SSI
DEATHS: Charles Waldmeyer, Laborer, 8/12/16
RETIREMENTS: Lynne Pease, Selectmen’s Executive Clerk, 11/1/16
The Board accepted and signed the 093016 Warrant and September payroll. The August 2016
minutes were reviewed and approved as well as the cashbooks for July 2016.
The Board reviewed the actuarial data from Dan Sherman. A motion was made by Bob,
seconded by Joe and approved to accept the 1/1/16 actuarial data and funding schedule.
Bob asked that a Town Meeting article be reserved for an increase in the COLA base to $14,000.
Bladen Burns from Fiduciary Management presented the annual report. He noted there have
been no changes to the firm and the large cap fund has been reopened. Year-to-date the
performance is up 9.3% and since the inception with LRS in May 2012 it is up 12.88%. The
heaviest portfolio weighting is consumer discretionary at 31.95% and 13.68 with manufacturing.
Currently they hold 12% in cash expecting a downturn.
Henry Jaung and Steve MacLellan from Meketa were present. Reports comparing U.S. and
Developed Market Foreign Rolling and Emerging Market Equity rolling three year returns were
discussed. The Russell 3000’s returns were much greater than MSCI EAFE and MSCI Emerging
Markets. A chart for ten-year returns of a 65% stocks and 35% bonds was discussed. It was
assumed that the average assumption from 1998–2016 would be 7% when in actuality it
was 4.9%.
The portfolio as of August 31, 2016 was $143.7m. 38% of the funds are held in domestic equity
made up of Contrafund, FMI, Hartford Capital and Rhumbline Russell 1000 Index. The Board
discussed the change in management at Hartford with Saul Pannell transitioning and observed
that Hartford is looking more like an index fund.
Henry noted that LRS has little exposure to small and mid-cap and proposed moving 15 – 20%
from domestic equity to small or mid-cap. Hartford at $15m is 11% of the portfolio. The Board
could move 5% to small/mid-cap and additional over time.
A proposal was made to invest an additional $5m with PRIT RE Fund and to lower equity by
5%. Alan proposed eliminating Hartford and reinvest the funds but it was decided to not
eliminate the fund immediately but to transfer $5m in monthly $1m increments to the PRIT RE
Fund. Overtime the balance of Hartford will be transferred to small or mid-cap.
Steve discussed a Meketa Index fund that some clients are using. Steve will bring information
about the fund to the next meeting.
A proposal was made to have Meketa start a search for small/mid-cap investments and to look
for an alternative for FMI.
As of June 2016, approximately 4.2% of the total system in invested in fossil fuel companies.
Within the exposure, approximately 1.6% of the total System is invested in the Carbon
Underground 200 Companies. Meketa’s analysis included equity managers Hartford, Fiduciary,
Fidelity, Rhumbline, Matthews, Acadian and Wellington; fixed income manager, Loomis Sayles
and opportunistic manager, Wellington.
The following manager meetings have been set: Matthews, Monroe and White Oak for Oct. 20
and Golub for Nov. 29.
The Board was reminded of the educational requirements.
Compensation study in progress for Maggie’s review.
A motion was made, seconded and approved unanimously to adjourn the meeting at 9:35.
The next meeting will be held October 20, 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