Police Retirement Board

City of Columbia, Missouri Meeting Minutes Police Retirement Board Friday, September 9, 2016 Conference Room 1C Joint Investment Committee Columbia City Hall 8:30 AM 701 E. Broadway I. CALL TO ORDER A meeting of the Joint Investment Committee for the Firefighters’ Retirement Board and Police Retirement Boards was held at 8:57 a.m. on September 9th, 2016, in Conference Room 1C of Columbia’s City Hall. Committee members in attendance were Mike Yoakum, Justin Collins and Greg Kome from the Fire Board and Ben Frede, Matt Pitzer and Allan Bell from the Police Board. Attending from the Fire Department was Chief Randy White and Deputy Chief Kyle Fansler. Attending from the Finance Department were Michele Nix, Lynn Cannon and Eric Stann. Also attending was Marc Shegoski and David Sears from UBS and Jason Liebowitz from West End Advisors. II. INTRODUCTIONS III. APPROVAL OF AGENDA Mr. Yoakum made a motion to approve the agenda for the September 9th, 2016 meeting. Mr. Collins seconded the motion and it was approved unanimously. IV. APPROVAL OF MINUTES June 10th, 2016 Minutes Mr. Collins made a motion to approve the minutes from the June 10th, 2016 meetings upon a recommendation to change a typo in the minutes. Mr. Kome seconded the motion and it was approved unanimously. V. SPECIAL ITEMS Investment Presentation by Marc Shegoski and David Sears, UBS Jason Liebowitz with West End Advisors gave an overview of his firm, explained the investment strategy and reviewed the portfolio performance. Mr. Liebowitz also answered questions raised by the Board such as market sectors used by the firm, historical risk, their macro-economic analysis, market outlooks, and his firm’s average hold period for a company in the portfolio. Mr. Shegoski and Mr. Sears then discussed West End Advisors and recommended the Board stay the current course with the firm. City of Columbia, Missouri Page 1 Printed on 11/9/2016 Police Retirement Board Meeting Minutes September 9, 2016 Mr. Shegoski reviewed the market outlook for domestic and global markets. He and Mr. Sears then reviewed the portfolio and UBS’ write-up on each manager. They briefly touched upon the highs and lows from the conversations with each manager. Mr. Sears said Bahl & Gaynor and Delaware were doing well, and O’Shaughnessy, Oak Ridge, NFJ, Invesco, Argent and Goldman Sachs were underperforming. Mr. Sears added that UBS had removed Bradford Marzac from the watch list. Mr. Shegoski then said the 40% of the portfolio was fixed income and 60% was equities. Training Presentation by Marc Shegoski and David Sears, UBS Mr. Shegoski and Mr. Sears then reviewed the fiduciary briefcase with the Committee, such as what could be added to it and who could access it. VI. NEW BUSINESS Ms. Nix shared with the Committee a recommendation from the actuary about completing an experience study. She said the last study was done in 2010 and its normally good practice to have one done every five years or no less than seven years. Ms. Nix said the study takes all of the assumptions and run them through models to see if the assumptions match and make sense with the City’s experiences. She said the cost would be split between the Police and Fire Pensions. As a result, the actuary would recommend any changes to the actuarial valuation. She mentioned that in order to complete the study in time to show the potential changes on the actuary’s current report, the Committee would need to move up their next regularly scheduled meeting to November 2016. She then shared the request by the Fire Board to have a cost-neutral analysis of the DROP Report done before it sunsets next year in August 2017. In addition, she recommended the Committee look into re-bidding the actuarial process for FY2018. In response to a question by Mr. Frede, Ms. Nix said the experience study would revise the FY2016 actuarial report. The Committee discussed if the experience study should be done and when it should occur. The Committee then discussed the re-bidding process. Mr. Bell mentioned his previous conversation at MAPERS with a law firm from Kansas City who monitors security fraud and files class action lawsuits. Mrs. Nix said this action would be something City Council would have to be willing to do. Mr. Yoakum made a motion to approve the recommendation to complete an experience study. Mr. Pitzer seconded and it was approved unanimously. Mr. Yoakum made a motion to move the next quarter’s meeting to November 9th, 2016 at 8:30 AM. Mr. Kome seconded and it was approved unanimously. Mr. Yoakum made a motion to start the actuarial re-bid process beginning in January 2017. Mr. Bell seconded and it was approved unanimously. VII. NEXT MEETING DATE City of Columbia, Missouri Page 2 Printed on 11/9/2016 Police Retirement Board Meeting Minutes September 9, 2016 December 9, 2016 Mr. Yoakum made a motion to move the next quarter’s meeting to November 9th, 2016 at 8:30 AM. Mr. Kome seconded and it was approved unanimously. VIII. ADJOURNMENT There being no further business, the meeting was adjourned at 10:50 a.m. Members of the public may attend any open meeting. For requests for accommodations related to disability, please call 573-874-7214. In order to assist staff in making the appropriate arrangements for your accommodation, please make your request as far in advance of the posted meeting date as possible. City of Columbia, Missouri Page 3 Printed on 11/9/2016