Retiree Health Care Investment Board

CITY OF ROYAL OAK RETIREE HEALTH CARE INVESTMENT BOARD MINUTES OF THE REGULAR MEETING OF THE BOARD OF TRUSTEES A meeting of the Retiree Health Care Investment Board of Trustees was conducted in the City Hall Conference Room 309, Royal Oak MI, Thursday – February 2, 2017 at 1:30 p.m. The meeting was called to order by Chairperson Don Van Ochten at 2:13 pm Attendance PRESENT: Don Van Ochten- Chairperson Lee Collick- Vice Chairperson Dave Poulton- Trustee Pat Paruch- Trustee Don Johnson- Trustee ALSO PRESENT: Julie Rudd - Bd Chief Administrative Officer/ Bd Secretary/Bd Treasurer Tom Michaud - Bd Attorney with VanOverbeke Michaud and Timmony Leah Motyka- Administrative Assistant- Pension Technician Public Comment- Tim Brice and Rebecca Wolfe from Morgan Stanley passed out materials regarding the selection of investment consultant for the trust. Documents on file in finance department. (2:14 pm - 2:27 pm) th Board approval of the draft minutes for January 5 , 2017 meeting th Moved by Dave Poulton to approve the January 5 , 2017 meeting minutes Supported by Don Johnson MOTION ADOPTED UNANIIMOUSLY 5/0 INVESTMENTS Asset Allocation and Investment Policy. Presentation by Brian Green from AndCo Consulting (formerly known as Bogdahn Group). Brian discussed the recommended portfolio, which is an optimal mix to drive maximum amount of return (without an imprudent level of risk) in current return environment. The recommended target for US equity is 45%, Int’l equity 20%, US fixed income 15%, Int’l fixed income 0%, cash 0%, real estate (private) 10%, and other alternatives (ex. direct lending) 10%. If Andco cannot get out of a product within one year, then Andco must ask the board’s permission. Andco is taking a measured approach getting into the market (no more than 12 months). Cash in the meantime. Andco has the authority to move money within custodial bank (5/3). Full report available in the finance office Investment Policy Statement Proposal and Adoption. Only change to be made in IPS is from 15% to 7.5% (page 8). Moved by Don Johnson to adopt IPS as amended Supported by Pat Paruch MOTION ADOPTED UNANIIMOUSLY 5/0 Don Johnson left the meeting LEGAL None OTHER BUSINESS Request vote to allow the finance director to approve trust payments without the board’s specific approval. Revenue and expenditure variance report will be provided to trustees annually after the audit. Moved by Lee Collick to allow the finance director to approve trust payments without the board’s specific approval. Supported by Dave Poulton MOTION ADOPTED UNANIMOUSLY 4/0 Request to allow finance director to sign contracts and transactions without the board’s specific approval. Assistant finance director will be a secondary signature. Moved by Lee Collick to allow finance director to sign contracts and transactions without the board’s specific approval. Supported by Dave Poulton MOTION ADOPTED UNANIMOUSLY 4/0 NEXT MEETING AND ADJOURNMENT Next regular meeting is scheduled for immediately following the retirement system board meeting at th approximately 1:30 pm on Monday – March 6 , 2017 at City Hall room 309. th Moved by Lee Collick to adjourn the meeting (3:40 pm.) and confirm next meeting for March 6 , 2017 immediately following retirement system board meeting at approximately 1:30 pm Supported by Pat Paruch MOTION ADOPTED UNIANIMOUSLY 4/0