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 7, 2019 at 8:30 a.m. The meeting was called to order at 8:40 a.m. Attendance PRESENT: Lee Collick- Chairperson Bret Nelson- Vice Chairperson Kim Gibbs- Trustee Kyle DuBuc- Trustee ALSO PRESENT: Lisa Genord- Administrative Assistant / Pension Technician Tom Michaud – Bd attorney with VanOverbeke Michaud and Timmony Brian Green – AndCo Investment Advisor ABSENT: David Gillam – City Attorney / Interim City Manager Julie Rudd - Bd Chief Administrative Officer/ Bd Secretary/Bd Treasurer Public Comment None Board approval of the agenda for November 7, 2019 meeting Moved by Bret Nelson to approve the November 7, 2019 meeting agenda Supported by Kyle DuBuc MOTION ADOPTED UNANIIMOUSLY 4/0 Board approval of the draft minutes for October 8, 2019 meeting Moved by Bret Nelson to approve the October 8, 2019 meeting minutes Supported by Kyle DuBuc MOTION ADOPTED UNANIIMOUSLY 4/0 INVESTMENTS Investment performance review as of October 31, 2019 presented by Brian Green of AndCo. Market value/allocation of assets as of October 31, 2019 is $133,367,540. Current month – total portfolio underperformed the benchmark: 1.34% vs. 1.78% index. Three-month performance – total portfolio underperformed the benchmark: 1.61% vs. 1.71% index. YTD performance – total portfolio underperformed the benchmark: 15.06% vs. 15.44% index. One-year performance – total portfolio underperformed the benchmark: 10.36% vs. 10.63% index. Inception – total portfolio underperformed the benchmark: 5.37% vs. 6.96% index. Brian reported that small-cap outperformed mid-cap, and higher risk outperformed lower risk investments. Brian also reported that both AQR large cap and Seizert mid cap were down for the quarter in our domestic equity portfolio, while our international equity portfolio outperformed the index for the quarter. Brian also reported that Templeton Global lagged this quarter due to no exposure to U. S. treasuries, and also due to approximately 20% of their benchmark is government debt that is paying a negative yield. Brian reported that historically, the U.S. has been in the longest economic growth cycle, spanning over 40 years, but it has been the worst as far as Gross Domestic Product (GDP) expansion. Brian reported that considering the current volatility of the economy, there is great value in this slow and steady growth cycle, and in staying the course. The complete AndCo Investment Performance Review report dated October 31, 2019 is on file in Finance Office. Moved by Bret Nelson to receive and file Supported by Kyle DuBuc MOTION ADOPTED UNIANIMOUSLY 4/0 PGIM Real Estate Asset & Investment Report 3Q2019 Moved by Bret Nelson to receive and file Supported by Kyle DuBuc MOTION ADOPTED UNIANIMOUSLY 4/0 PGIM Real Estate Prisa II Performance Report 3Q2019 Moved by Bret Nelson to receive and file Supported by Kyle DuBuc MOTION ADOPTED UNIANIMOUSLY 4/0 Seizert Capital Partners (SCP) Quarterly Report 3Q2019 Moved by Bret Nelson to receive and file Supported by Kyle DuBuc MOTION ADOPTED UNIANIMOUSLY 4/0 Seizert Capital Partners (SCP) Newsletter dated 9/30/19 Moved by Bret Nelson to receive and file Supported by Kyle DuBuc MOTION ADOPTED UNIANIMOUSLY 4/0 Seizert Capital Partners (SCP) letter dated 11/1/19 Moved by Bret Nelson to receive and file Supported by Kyle DuBuc MOTION ADOPTED UNIANIMOUSLY 4/0 LEGAL None OTHER None NEXT MEETING AND ADJOURNMENT Next regular meeting is scheduled immediately following the retirement system board meeting at approximately 8:30am on Monday, December 9, 2019 at city hall room 309. Moved by Lee Collick to adjourn the meeting (9:03 a.m.) and confirm next meeting for December 9, 2019 immediately following retirement system board meeting at approximately 8:30 a.m. Supported by Kyle DuBuc MOTION ADOPTED UNIANIMOUSLY 4/0