Retiree Health Care Investment Board
Regular MeetingRoyal Oak, MI · September 10, 2020
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 Thursday September 10, 2020 at 8:30 a.m.
The meeting was called to order at 8:18 a.m.
Attendance / Roll Call
PRESENT: Lee Collick- Chairperson
Bret Nelson- Vice Chairperson
Kyle DuBuc- Trustee
Paul Brake – 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
A moment of silence was observed by the committee to acknowledge the passing of Kim Gibbs, former
Retiree Health Care Investment Board Trustee and City Commissioner.
Public Comment
Members of the public could have participated in the meeting electronically by providing public
comment on any trust-related matter, whether on the agenda or not, by leaving a recorded
comment at 248-246-3411 between the hours of 7:00 and 8:00 p.m. on Wednesday, September 9,
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 September 10, 2020 meeting
Moved by Lee Collick to approve the September 10, 2020 meeting agenda
Supported by Bret Nelson
MOTION ADOPTED UNANIMOUSLY 4/0
Board approval of the draft minutes for August 7, 2020 meeting
Moved by Lee Collick to approve the August 7, 2020 meeting minutes
Supported by Bret Nelson
MOTION ADOPTED UNANIMOUSLY 4/0
INVESTMENTS
Investment performance review as of August 31, 2020 presented by Brian Green of AndCo.
Market value/allocation of assets as of August 31, 2020 is $135,597,993.
Current month – total portfolio underperformed the benchmark: 3.37% vs. 4.25% index.
3-month performance – total portfolio underperformed the benchmark: 8.51% vs. 10.53% index.
Year-to date performance – total portfolio underperformed the benchmark: 2.11% vs. 5.86% index.
1-year performance – total portfolio underperformed the benchmark: 9.03% vs. 13.94% index.
3-year performance – total portfolio underperformed the benchmark: 6.11% vs. 8.66% index.
1
Brian reported that the month of August was a continued success from a market standpoint, and that
sector returns were dominated by big mega-tech stocks, such as Amazon. Brian reviewed the Schedule
of Investable Assets chart on page 1 of the presentation booklet, which reflects a 5.96% return on the
city’s investment portfolio from its inception. Lee Collick asked Brian if he was comfortable about where
the city’s portfolio was at, and Brian stated that he was displeased with the portfolio’s relative
performance and specifically with Seizert and Ancora. Brian reported that he / AndCo had virtual visits
with Seizert and Ancora and is confident in the changes that those fund managers are making. Brian
also stated that he was happy with the positioning of the portfolio, but not with the current reported
numbers, and hopes to see improvements in the next 3 to 6 months in the portfolio’s performance. Lee
Collick requested that Brian / AndCo continue to closely monitor the portfolio to ensure that all potential
opportunities to improve the portfolio performance are considered. Kyle DuBuc asked if, with the
upcoming presidential election, how Brian feels the market will react and what the impact could be on
the city’s portfolio. Brian stated that in the short-term, there will be market volatility, but that it will smooth
out over a 2 – 4-week period after the election. Brian stated that he will provide the trustees with some
historical data / charts outlining market returns during prior presidential election years.
The complete AndCo Investment Performance Review report dated August 31, 2020 is on file in Finance
Office.
Moved by Lee Collick to receive and file
Supported by Bret Nelson
MOTION ADOPTED UNANIMOUSLY 4/0
PGIM Real Estate Prisa II Fund Review 2Q 2020
Moved by Lee Collick to receive and file
Supported by Bret Nelson
MOTION ADOPTED UNANIMOUSLY 4/0
PGIM Real Estate Prisa II LP Consolidated Financial Statements
Moved by Lee Collick to receive and file
Supported by Bret Nelson
MOTION ADOPTED UNANIMOUSLY 4/0
PGIM Real Estate Prisa II UHC, LP Consolidated Financial Statements
Moved by Lee Collick to receive and file
Supported by Bret Nelson
MOTION ADOPTED UNANIMOUSLY 4/0
LEGAL
VanOverbeke, Michaud, & Timmony, P.C. Memo re: Trustee Election Policies and Procedures,
dated September 2, 2020.
Tom Michaud, retiree health care investment board attorney, discussed the above memo in an effort to
remind the retiree health care investment board to review and discuss trustee election policies and
procedures well in advance of when they will be held and in light of the COVID-19 pandemic social
distancing restrictions. Tom stated that the trustee policies and procedures do not necessarily need to
be changed and no action is needed at this time.
Moved by Lee Collick to receive and file
Supported by Bret Nelson
MOTION ADOPTED UNANIMOUSLY 4/0
OTHER
Julie Rudd proposed that the retiree health care investment board change the date of the monthly
retiree health care investment board meetings from the first Monday of each month, to either the
second or third Friday of each month, to allow ample time for the retiree health care investment
board investment advisor to compile the prior month’s financials and present them at the following
month’s board meeting. The board discussed this matter and decided to change the future retiree
health care investment board meeting dates to the third Friday of each month, beginning in October
2020.
NEXT MEETING AND ADJOURNMENT
2
Next regular meeting is scheduled immediately following the retirement system board meeting at
approximately 8:30 a.m. on Friday, October 16, 2020 remotely via Zoom.
Moved by Lee Collick to adjourn the meeting (8:41 a.m.) and confirm next meeting for October 16, 2020
immediately following retirement system board meeting at approximately 8:30 a.m.
Supported by Bret Nelson
MOTION ADOPTED UNANIMOUSLY 4/0
3
Agenda
Office of the Finance Director
203 South Troy 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 Thursday, September 10, 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 September 10, 2020 Retiree Health Care Investment
Board Meeting will be held electronically, in compliance with the Open Meetings Act and Executive
Order 2020-154, as issued by Governor Whitmer on July 17, 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 retiree health care investment board-related matter, whether on the agenda or not, by leaving a
recorded comment at 248-246-3411 between the hours of 7:00 and 8:00p.m. on Wednesday,
September 9, 2020. Recorded comments will be played for the retiree health care investment board
during the public comment portion of the agenda.
Members of the public can also contact members of the retiree health care investment board to
provide input or ask questions on any business that will come before the retiree health care
investment board at the meeting via e-mail as follows:
ccdubuc@romi.gov
leec@romi.gov
bretn@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, City Manager Executive Assistant at 248-
246-3203 by 4:30p.m. on Friday, September 4, 2020, so that appropriate arrangements can be made.
Office of the Finance Director
203 South Troy Street
Royal Oak, MI 48067
www.romi.gov
Agenda
Royal Oak Retiree Health Care Investment Board of Trustees Meeting
City Hall, 203 South Troy Street
Royal Oak, MI 48067
Broadcast from City Commission Room 121
https://www.romi.gov/523/Live-Stream-and-Video-on-Demand
Thursday, September 10, 2020 at 8:30a.m.
*7:00p.m. to 8:00p.m. Wednesday, September 9, 2020
Public Comment Phone in 248-246-3411 (details listed below)
1) Roll Call
2) Public Comment*
*To participate in public comment please call 248-246-3411 on Wednesday, September 9, 2020 between the
hours of 7:00 and 8:00p.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.
3) Request That the Board Approve the Agenda for September 10, 2020
4) Request That the Board Approve the Minutes for August 7, 2020
5) Investments
Market value and performance update presented by Brian Green with AndCo Investments (to be
distributed)
Request that the Board receive and file.
PGIM Real Estate Prisa II Fund Review 2Q 2020 (enclosed)
Request that the Board receive and file.
PGIM Real Estate Prisa II LP Consolidated Financial Statements (enclosed)
Request that the Board receive and file.
PGIM Real Estate Prisa II UHC, LP Consolidated Financial Statements (enclosed)
Request that the Board receive and file.
6) Legal
VanOverbeke, Michaud, & Timmony, P.C. Memo re: Trustee Election Policies and Procedures,
dated September 2, 2020 (enclosed)
Request that the Board receive and file
7) Other
None
8) Adjourn
Next regular meeting (first Monday of each month) is scheduled to immediately follow the
retirement board meeting at approximately 8:30 am Monday,
October 5, 2020
Request that the Board establish the next meeting for October 2020.
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