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, Tuesday, August 6, 2019 at 8:30 a.m. The meeting was called to order at 8:30 a.m. Attendance PRESENT: Lee Collick- Chairperson Bret Nelson- Vice Chairperson Kim Gibbs- Trustee Kyle DuBuc- Trustee Corey O’Donohue – Police Chief / Assistant City Manager / Acting City Manager ALSO PRESENT: Julie Rudd - Bd Chief Administrative Officer/ Bd Secretary/Bd Treasurer Lisa Genord- Administrative Assistant / Pension Technician Tom Michaud – Bd attorney with VanOverbeke Michaud and Timmony Chris Kuhn - AndCo Public Comment None Board approval of the agenda for August 6, 2019 meeting Moved by Bret Nelson to approve the August 6, 2019 meeting agenda Supported by Kyle DuBuc MOTION ADOPTED UNANIIMOUSLY 5/0 Board approval of the draft minutes for July 1, 2019 meeting Moved by Bret Nelson to approve the July 1, 2019 meeting minutes Supported by Kyle DuBuc MOTION ADOPTED UNANIIMOUSLY 5/0 INVESTMENTS Investment performance review as of June 30, 2019 provided by Chris Kuhn of AndCo Market value/allocation of assets as of June 30, 2019 is $132,621,935. Current month – total portfolio underperformed the benchmark: 4.60% vs. 4.87% index. Three-month performance – total portfolio underperformed the benchmark: 3.04% vs. 3.35% index. YTD performance – total portfolio underperformed the benchmark: 12.53% vs. 13.00% index. One-year performance – total portfolio underperformed the benchmark: 5.35% vs. 7.11% index. Inception – total portfolio underperformed the benchmark: 5.14% vs. 6.84% index. Chris reported that despite the recent market volatility, the 2nd quarter performance was very good. AQR and First Eagle were paying dividends despite the market volatility, however both Seizert and Ancora mid-caps trailed for the quarter. Investment performance review as of July 31, 2019 provided by Chris Kuhn of AndCo Market value/allocation of assets as of July 31, 2019 is $132,797,922. Current month – total portfolio outperformed the benchmark: 0.54% vs. 0.43% index. Three-month performance – total portfolio underperformed the benchmark: 1.01% vs. 1.40% index. YTD performance – total portfolio underperformed the benchmark: 13.24% vs. 13.57% index. One-year performance – total portfolio underperformed the benchmark: 4.05% vs. 5.42% index. Inception – total portfolio underperformed the benchmark: 5.24% vs. 6.82% index. Chris reported that we were off to a good start in July up until the last day or so, and that August is off to a rocky start. Seizert Capital Mid Cap outperformed the index for the month of July, while Ancora Small Mid-Cap underperformed in July. Chris / AndCo did not recommend any changes considering the ongoing market volatility. The complete AndCo Investment Performance Review reports dated June 30, 2019 and July 31, 2019 are on file in Finance Office. Moved by Kyle DuBuc to receive and file Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0 PGIM Real Estate – Asset & Investment Report 2nd Quarter 2019 Moved by Kyle DuBuc to receive and file Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0 PGIM Real Estate – 2018 ESG Highlights Moved by Kyle DuBuc to receive and file Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0 PGIM Real Estate – Prisa II Flash Report 2nd Quarter 2019 Moved by Kyle DuBuc to receive and file Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0 Seizert Capital Partners (SCP) - Quarterly Report dated June 30, 2019 Moved by Kyle DuBuc to receive and file Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0 Seizert Capital Partners (SCP) – Mid Cap Commentary 2Q 2019 as of June 30,2019 Moved by Kyle DuBuc to receive and file Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0 Seizert Capital Partners (SCP) – Directions Newsletter 2Q 2019 as of June 30, 2019 Moved by Kyle DuBuc to receive and file Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0 LEGAL None OTHER 2019 Fiduciary Liability Insurance Policy Moved by Bret Nelson to receive and file. Supported by Kyle DuBuc MOTION ADOPTED UNIANIMOUSLY 5/0 NEXT MEETING AND ADJOURNMENT Next regular meeting is scheduled immediately following the retirement system board meeting at approximately 8:30am on Monday, September 9, 2019 at city hall room 309. Moved by Lee Collick to adjourn the meeting (8:37 a.m.) and confirm next meeting for September 9, 2019 immediately following retirement system board meeting at approximately 8:30 a.m. Supported by Bret Nelson MOTION ADOPTED UNIANIMOUSLY 5/0