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, Monday – September 10, 2018 at 8:30 a.m. The meeting was called to order at 8:43 am Attendance PRESENT: Lee Collick- Chairperson Bret Nelson- Vice Chairperson Kim Gibbs- Trustee Kyle DuBuc- Trustee Don Johnson- Trustee ALSO PRESENT: Julie Rudd - Bd Chief Administrative Officer/ Bd Secretary/Bd Treasurer Leah Motyka - Administrative Assistant- Pension Technician Brian Green – Investment Advisor with AndCo Public Comment- none Board approval of the draft minutes for August 6th, 2018 meeting Moved by Kyle DuBuc to approve the August 6th, 2018 meeting minutes Supported by Bret Nelson MOTION ADOPTED UNANIIMOUSLY 5/0 INVESTMENTS Investment performance report for period ending August 31, 2018 presented by Brian Green Market value/allocation of assets as of August 31, 2018 is $114,962,642 Total fund performance since inception is 6.23% vs. policy index 8.01% Total fund performance for the quarter is 2.49% vs. policy index 3.16% Total fund performance for the month (except real estate) is 0.63% vs. policy index 1.17% Total fund performance for YTD is 2.81% vs. policy index 3.81% Total fund performance for one year is 7.04% vs. policy index 8.86% The portfolio has a new manager Ancora/Thelen Small-Mid Cap. NorthPointe Small Cap was underperforming mainly because of stock selection. The complete report is on file in finance office. Moved by Kim Gibbs to receive and file report Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0 July 31, 2018 Investment performance report Moved by Kim Gibbs to receive and file report Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0 Discussion re: investment of transfer of assets from MERS. Money will be invested immediately. $5 million is going into PRISA II Real Estate. Memo dated August 14, 2018 from Brian Green with AndCo: Update on current allocation status of trust investments Moved by Kim Gibbs to receive and file memo Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0 Memo dated July 17, 2018 from Fifth Third Bank Moved by Kim Gibbs to receive and file memo Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0 Memo dated August 9, 2018 from Fifth Third Bank re: investment operations Moved by Kim Gibbs to receive and file memo Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0 PGIM Real Estate PRISA II Second Quarter 2018 Fund Review Moved by Kim Gibbs to receive and file Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0 PRISA II LP-Statements of assets and liabilities Moved by Kim Gibbs to receive and file Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0 PRISA II UHC, LP-Consolidated statements of assets and liabilities Moved by Kim Gibbs to receive and file Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0 LEGAL Draft memo dated August 16, 2018 from State of Michigan- Public Act 202: Selection of the Uniform Assumptions Moved by Bret Nelson to receive and file memo Supported by Kim Gibbs MOTION ADOPTED UNIANIMOUSLY 5/0 Draft memo dated August 21, 2018 from VanOverbeke, Michaud, & Timmony, P.C. re: Uniform Actuarial Assumptions. Same remarks discussed in the retirement board meeting. Moved by Bret Nelson to receive and file memo Supported by Kim Gibbs MOTION ADOPTED UNIANIMOUSLY 5/0 OTHER-none NEXT MEETING AND ADJOURNMENT Next regular meeting is scheduled immediately following the retirement system board meeting at approximately 8:30 am on Monday – October 8th, 2018 at city hall room 309. Moved by Bret Nelson to adjourn the meeting (9:26 a.m.) and confirm next meeting for October 8th, 2018 immediately following retirement system board meeting at approximately 8:30 a.m. Supported by Don Johnson MOTION ADOPTED UNIANIMOUSLY 5/0