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 – November 8, 2018 at 8:30 a.m. The meeting was called to order at 9:37 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 Chris Kuhn – Investment Advisor with AndCo Tom Michaud – Bd attorney with VanOverbeke Michaud and Timmony Public Comment- none Board approval of the draft minutes for October 8th, 2018 meeting Moved by Bret Nelson to approve the October 8th, 2018 meeting minutes Supported by Don Johnson MOTION ADOPTED UNANIIMOUSLY 5/0 INVESTMENTS September 30, 2018 Quarterly investment performance report presented by Chris Kuhn The complete report is on file in finance office. Moved by Kyle DuBuc to receive and file report Supported by Kim Gibbs MOTION ADOPTED UNIANIMOUSLY 5/0 Investment performance report for period ending October 31, 2018 presented by Chris Kuhn Market value/allocation of assets as of October 31, 2018 is $129,720,468 Total fund performance since inception is 2.33% vs. policy index 3.96% Total fund performance for the quarter is -4.20% vs. policy index -3.88% Total fund performance for the month (except real estate) is -4.74% vs. policy index -5.39% Total fund performance for YTD is -2.13% vs. policy index -1.02% Total fund performance for one year is 0.13% vs. policy index 1.48% The complete report is on file in finance office. Moved by Kyle DuBuc to receive and file report Supported by Kim Gibbs MOTION ADOPTED UNIANIMOUSLY 5/0 Follow-up discussion on assumed rate of return-Chris distributed two handouts to the board. One handout was market return assumptions, based on 34 independent capital market return assumptions from consulting firms. With our current allocations AndCo’s assumption (7-10 years) is 6.22%, Horizon avg. 10 years is 7.00%, and Horizon avg. 20 years is 8.29%. The other handout compares historical returns. Moved by Kyle DuBuc to receive and file handouts Supported by Kim Gibbs MOTION ADOPTED UNIANIMOUSLY 5/0 Memo dated October 9, 2018 from Ancora Moved by Kyle DuBuc to receive and file memo Supported by Kim Gibbs MOTION ADOPTED UNIANIMOUSLY 5/0 PGIM Real Estate PRISA II Third Quarter 2018 Performance Report Moved by Kyle DuBuc to receive and file report Supported by Kim Gibbs MOTION ADOPTED UNIANIMOUSLY 5/0 Seizert Capital Partners Directions 3Q18 as of September 30, 2018 Moved by Kyle DuBuc to receive and file report Supported by Kim Gibbs MOTION ADOPTED UNIANIMOUSLY 5/0 Seizert Capital Partners Quarterly Report dated September 30, 2018 Moved by Kyle DuBuc to receive and file report Supported by Kim Gibbs MOTION ADOPTED UNIANIMOUSLY 5/0 PGIM Third Quarter 2018 Asset & Investment Report Moved by Kyle DuBuc to receive and file report Supported by Kim Gibbs MOTION ADOPTED UNIANIMOUSLY 5/0 LEGAL-none 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 – December 3rd, 2018 at city hall room 309. Moved by Bret Nelson to adjourn the meeting (9:47 a.m.) and confirm next meeting for December 3rd, 2018 immediately following retirement system board meeting at approximately 8:30 a.m. Supported by Kim Gibbs MOTION ADOPTED UNIANIMOUSLY 5/0