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 remotely via Zoom, on Friday October 16, 2020 at 8:30 a.m. The meeting was called to order at 8:24 a.m. Attendance / Roll call performed 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 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 Thursday, October 15, 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 October 16, 2020 meeting Moved by Lee Collick to approve the October 16, 2020 meeting agenda Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 Board approval of the draft minutes for September 10, 2020 meeting Moved by Lee Collick to approve the September 10, 2020 meeting minutes Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 INVESTMENTS Investment performance review as of September 30, 2020 presented by Brian Green of AndCo. Market value/allocation of assets as of September 30, 2020 is $131,745,098. Current month – total portfolio outperformed the benchmark: -1.62% vs. -2.23% index. 3-month performance – total portfolio underperformed the benchmark: 5.75% vs. 5.92% index. Year-to date performance – total portfolio underperformed the benchmark: 0.46% vs. 3.50% index. 1-year performance – total portfolio underperformed the benchmark: 5.91% vs. 9.95% index. 3-year performance – total portfolio underperformed the benchmark: 5.19% vs. 7.46% index. Inception – total portfolio underperformed the benchmark: 5.25% vs. 7.43% index. Brian reported that the month of September was a reversal of the upward market trend from the prior few months, in that there were negative equity market returns in September. Brian also reported the month of October, so far, has been a reversal of September with positive equity market returns. Brian compared the 2020 vs. 2019 YTD Sector Returns, which outlined that the best performing sector was 1 Info / Tech, with the worst performing sector being Energy, in both 2020 and 2019. Brian stated that in 2020, the spread between these sectors is 76%, whereas the spread in 2019 is much less at 36%. Brian reported that he anticipates continued short-term market volatility, due to the upcoming presidential election, federal stimulus package decisions, and the COVID-19 health crisis. The complete AndCo Investment Performance Review report dated September 30, 2020 is on file in Finance Office. Moved by Lee Collick to receive and file the investment report Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 PGIM Real Estate Prisa II LP Distribution letter dated September 25, 2020 Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 LEGAL Tom Michaud, retiree health care investment board attorney with VanOverbeke, Michaud, & Timmony, P.C., reported that there has been a recent development with regards to the Open Meetings Act (OMA) of Michigan. Tom stated that legislation regarding the OMA bill was passed through the state house and senate this past week, and once signed by the governor, will impose different restrictions as to how the city’s public retiree health care investment board conduct meetings. The OMA legislation will allow remote meetings through December 31, 2020, but beginning January 1, 2021, retiree health care investment board members can only participate remotely if they, 1) are in the military, 2) have a medical reason, or 3) there is a state of emergency. Otherwise retiree health care investment board members must meet in person to conduct a meeting. Tom will provide a memo to the board with an update once the bill is finalized. Lee Collick asked if this legislation only applies to the retiree health care investment board trustees and not to the board’s administrative staff, and Tom stated that the OMA legislation applies only to the retiree health care investment board trustees and that there must be at least three people (quorum) gathered in person to conduct an official meeting. OTHER AndCo LLC – Political Contribution Disclosure Form completed and returned Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 AndCo LLC – Compensation Disclosure Form completed and returned Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 Gabriel, Roeder, Smith & Company – Political Contribution Disclosure Form completed & returned Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 VanOverbeke, Michaud and Timmony, P.C. – Political Contribution Disclosure Form completed & returned Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 NEXT MEETING AND ADJOURNMENT Next regular meeting is scheduled immediately following the retirement system board meeting at approximately 8:30 a.m. on Friday, November 20, 2020 remotely via Zoom. Moved by Lee Collick to adjourn the meeting (8:36 a.m.) and confirm next meeting for November 20, 2020 immediately following retirement system board meeting at approximately 8:30 a.m. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 2