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 – April 12, 2019 at 8:30 a.m. The meeting was called to order at 8:58 a.m. Attendance PRESENT: Lee Collick- Chairperson Bret Nelson- Vice Chairperson Kim Gibbs- Trustee Kyle DuBuc- Trustee ALSO PRESENT: Julie Rudd - Bd Chief Administrative Officer/ Bd Secretary/Bd Treasurer Lisa Genord- Administrative Assistant- Pension Technician Brian Green – Investment Advisor with AndCo Tom Michaud – Bd attorney with VanOverbeke Michaud and Timmony ABSENT: Don Johnson – City Manager Public Comment- none Board approval of the draft minutes for March 11, 2019 meeting Moved by Bret Nelson to approve the March 11h, 2019 meeting minutes Supported by Kyle DuBuc MOTION ADOPTED UNANIIMOUSLY 4/0 EXCUSED ABSENCE: Moved by Bret Nelson to excuse City Manager Don Johnson’s absence Supported by Kim Gibbs MOTION ADOPTED 4/0 INVESTMENTS Preliminary performance summary as of March 31, 2019 presented by Brian Green Market value/allocation of assets as of March 31, 2019 is $130,236,823. Current month – total portfolio underperformed the benchmark: 0.79% vs. 1.15% index. Three-month performance – total portfolio underperformed the benchmark: 9.05% vs. 9.22% index. YTD performance – total portfolio underperformed the benchmark: 9.05% vs. 9.22% index. One-year performance – total portfolio underperformed the benchmark: 2.69% vs. 4.93% index. Inception – total portfolio underperformed the benchmark: 4.15% vs. 5.91% index. Brian reported that the equity market rallied this year having the best Q1 in the last 21 years, and that the fear of rapidly rising interest rates has faded. Brian also reported that the yield rate curve is inverted, which usually indicates that the economy is slowing, and he estimates that we might be heading into a recession in close to 24 months. Brian suggested making some changes to the investment portfolio in preparation for the recession, such as adding more real estate exposure, shifting to managers that perform better during recessions and reviewing the blending strategies. Brian will continue to provide his recommendations at future meetings. Julie Rudd asked Brian to provide a historical performance report at the next meeting on Seizert Capital Mid Cap. Brian reported that Monroe County is invested in Seizert as a part of their portfolio with AndCo. The complete AndCo Investment Performance Review report is on file in Finance Office. Moved by Bret Nelson to receive and file report Supported by Kim Gibbs MOTION ADOPTED UNIANIMOUSLY 4/0 Memo from Brian Green at AndCo dated 3/13/19 providing an update on the Status of Trust Investments is on file in the Finance Office. Moved by Bret Nelson to receive and file memo. Supported by Kim Gibbs MOTION ADOPTED UNIAMOUSLY 4/0. 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 – May 6th, 2019 at city hall room 309. Moved by Kyle DuBuc to adjourn the meeting (9:20 a.m.) and confirm next meeting for May 6th, 2019 immediately following retirement system board meeting at approximately 8:30 a.m. Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 4/0