Retiree Health Care Investment Board

Name: Retiree Health Care Investment Board — Royal Oak, MI
Start: 2020-05-08
End: 2020-05-08
Location: Royal Oak, MI

Regular Meeting

Royal Oak, MI · May 8, 2020

Agenda Minutes

Minutes

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 remotely via Zoom, on Friday, May 8, 2020 at 8:30 a.m. The meeting was called to order at 8:25 a.m. Attendance PRESENT: Lee Collick- Chairperson Bret Nelson- Vice Chairperson Kyle DuBuc- Trustee David Gillam – Trustee 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 Brian Green – AndCo Investment Advisor Absent: Kim Gibbs - Trustee Public Comment Members of the public could have participated in the meeting electronically by providing public comment on any city-related matter, whether on the agenda or not, by leaving a recorded comment at 248-246-3411 between the hours of 8:30 and 9:30 p.m. on Thursday, May 7, 2020. Recorded comments would have been played for the retirement board during the public comment portion of the agenda. There were no public comments. Board approval of the agenda for May 8, 2020 meeting Moved by Lee Collick to approve the May 8, 2020 meeting agenda Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 Board approval of the draft minutes for April 14, 2020 meeting Moved by Lee Collick to approve the April 14, 2020 meeting minutes Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 INVESTMENTS Investment performance review as of April 30, 2020 presented by Brian Green of AndCo. Market value/allocation of assets as of April 30, 2020 is $122,825,455. Current month – total portfolio underperformed the benchmark: 7.69% vs. 7.71% index. 3-month performance – total portfolio underperformed the benchmark: -8.42% vs. -7.83% index. Year-to date performance – total portfolio underperformed the benchmark: -9.15% vs. -7.84% index. 1-year performance – total portfolio underperformed the benchmark: -2.99% vs. 0.01% index. 3-year performance – total portfolio underperformed the benchmark: 2.52% vs. 4.66% index. Inception performance – total portfolio underperformed the benchmark: 2.58% vs. 4.65% index. Brian reported that the equity market rebounded in April and the portfolio is experiencing a nice recovery overall so far. Brian also reported that fixed income index returns were all up for the month of April, while 1 key rates were lower across the board. Brian stated that while the National Bureau for Economic Research has not declared an official recession, the advance estimate of Q1-2020 GDP of -4.8% on April 29, 2020 indicates a possibility that the longest economic expansion on record may have come to an end during the quarter. Brian reported that AndCo will be making a change to the city’s portfolio in a few days to reduce exposure to Templeton Global Return (fixed income), and will send a memo to explain this change. The complete AndCo Investment Performance Review report dated April 30, 2020 is on file in Finance Office. Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 AndCo ADV Part 2A dated March 26, 2020 Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 AndCo Consulting Privacy Notice 2020 Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 PGIM Real Estate Prisa II Investor Statement 1Q 2020 Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 PGIM Real Estate Prisa II Detailed Management Fee Report ending 3.31.2020 Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 PGIM Real Estate Prisa II Flash Report 1Q 2020 Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 PGIM Real Estate letter dated April 11, 2020 Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 Seizert Capital Partners (SCP) GIPS 2019 Verification memo dated April 2020 Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 Seizert Capital Partners (SCP) Newsletter 1Q 2020 Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 Seizert Capital Partners (SCP) Quarterly Report dated March 31, 2020 Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 Seizert Capital Partners (SCP) Summary of Material Changes to Form ADV Part 2A Moved by Lee Collick to receive and file 2 Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 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 a.m. on Friday, June 5, 2020 at city hall room 309. Moved by Lee Collick to adjourn the meeting (8:47 a.m.) and confirm next meeting for June 5, 2020 immediately following retirement system board meeting at approximately 8:30 a.m. Supported by Kyle DuBuc MOTION ADOPTED UNANIMOUSLY 4/0 3

Agenda

Office of the Finance Director 211 South Williams Street Royal Oak, MI 48067 www.romi.gov NOTICE OF RETIREE HEALTH CARE INVESTMENT BOARD MEETING The Royal Oak Retiree Health Care Investment Board will hold at 8:30a.m. on Friday May 8, 2020 On April 1, 2020, Governor Whitmer issued Executive Order 2020-33, which declared both a state of emergency and a state of disaster across the State of Michigan due to the spread of the novel coronavirus (COVID-19). COVID-19 is a new strain of coronavirus that had not been previously identified in humans, can spread easily from person to person, and can result in serious illness or death. To mitigate the spread of COVID-19, to protect the public health, and provide essential protections to vulnerable Michiganders, it is crucial that all Michiganders take steps to limit in-person contact. The critical mitigation measures include social distancing and limiting the number of people interacting at public gatherings. Therefore, the May 8, 2020 Retiree Health Care Investment Board Meeting will be held electronically, in compliance with the Open Meetings Act and Executive Order 2020-48, as issued by Governor Whitmer on April 14, 2020. Members of the public can watch the meeting on WROK’s live web stream https://www.romi.gov/523/Live-Stream-and-Video-on-Demand Members of the public may participate in the meeting electronically by providing public comment on any city-related matter, whether on the agenda or not, by leaving a recorded comment at 248-246- 3411 between the hours of 8:30 and 9:30p.m. on Thursday, May 7, 2020. Recorded comments will be played for the retirement board during the public comment portion of the agenda. Members of the public can also contact members of the retirement board to provide input or ask questions on any business that will come before the retirement board at the meeting via e-mail as follows:  ccdubuc@romi.gov  ccgibbs@romi.gov  leec@romi.gov  bretn@romi.gov  gillamd@romi.gov Anyone wishing to participate in the meeting who needs special assistance under the Americans with Disabilities Act (ADA) is asked to contact Carol Schwanger Executive Assistant at 248-246-3203 by Wednesday May 6, 4:30p.m. so that appropriate arrangements can be made. Agenda Royal Oak Retiree Health Care Investment Board of Trustees Meeting Friday May 8, 2020 at 8:30a.m. *8:30p.m. to 9:30p.m. Thursday, May 7 Public Comment Phone in 248-246-3411 (details listed below) 1) Public Comment *To participate in public comment please call 248-246-3411 on Thursday, May 7 between the hours of 8:30p.m. and 9:30p.m. The chair will open the public comment portion of the meeting and your recorded phone message will be played as part of the meeting broadcast. Public comment will be limited to three-minutes per person.  If you exceed the three-minute limit only the first three-minutes will be played for the meeting broadcast.  If you call in multiple times only your first comment will be played. 2) Request That the Board Approve the Agenda for May 8, 2020 3) Request That the Board Approve the Minutes for April 14, 2020 4) INVESTMENTS Market value and performance update presented by Brian Green with AndCo Investments Request that the Board receive and file. AndCo ADV Part 2A dated March 26, 2020 (enclosed) Request that the Board receive and file. AndCo Consulting Privacy Notice 2020 (enclosed) Request that the Board receive and file. PGIM Real Estate Prisa II Investor Statement 1Q 2020 (enclosed) Request that the Board receive and file. PGIM Real Estate Prisa II Detailed Management Fee Report ending 3.31.2020 (enclosed) Request that the Board receive and file. PGIM Real Estate Prisa II Flash Report 1Q 2020 (enclosed) Request that the Board receive and file. PGIM Real Estate letter dated April 11, 2020 (enclosed) Request that the Board receive and file. Seizert Capital Partners (SCP) GIPS 2019 Verification memo dated April 2020 (enclosed) Request that the Board receive and file. Seizert Capital Partners (SCP) Newsletter 1Q 2020 (enclosed) Request that the Board receive and file. Seizert Capital Partners (SCP) Quarterly Report dated March 31, 2020 (enclosed) Request that the Board receive and file. Seizert Capital Partners (SCP) Summary of Material Changes to Form ADV Part 2A (enclosed) Request that the Board receive and file. 5) LEGAL None 6) OTHER None 7) ADJOURN Next regular meeting (first Monday of each month) is scheduled for 8:30a.m. Monday, June 1, 2020 location pending executive orders that may be in effect on June 1, 2020 Request that the Board establish the next meeting for June 1, 2020 at 8:30a.m.

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