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 April 16, 2021 at approximately 8:30 a.m. The meeting was called to order at 8:25 a.m. Attendance / Roll Call: PRESENT: Lee Collick, attending from Royal Oak, Michigan - Chairperson Bret Nelson, attending from Troy, Michigan - Vice Chairperson Kyle DuBuc, attending from Royal Oak, Michigan – Trustee Paul Brake, attending from Royal Oak, Michigan – Trustee Monica Hunt, attending from Royal Oak, Michigan - Trustee ALSO PRESENT: Julie Rudd - Bd Chief Administrative Officer/ Bd Secretary/Bd Treasurer Lisa Genord - Financial Analyst / Pension Technician Tom Michaud – Bd attorney with VanOverbeke Michaud and Timmony Brian Green – AndCo Investment Advisor Public Comment Members of the public were able to participate in the meeting by joining on Zoom Webinar using Meeting ID 83745739614 & password 099456. Participation could be either online or by calling in: Online: https://us02web.zoom.us/j/83745739614?pwd=d3lvYk1vL2dlcmdXYkFXRG11OXFNQT09 iPhone: 1 929 205 6099 or 1 301 715 8592 Phone: 1 929 205 6099 or 1 301 715 8592 or 1 312 626 6799 or 1 669 900 6833 or 1 253 215 8782 or 1 346 248 7799. There were no public attendees / comments. Board approval of the agenda for the April 16, 2021 meeting Moved by Lee Collick to approve the agenda for the April 16, 2021 meeting Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 Board approval of the draft minutes for the March 19, 2021 meeting Moved by Lee Collick to approve the draft minutes for the March 19, 2021 meeting Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 INVESTMENTS Investment performance review as of March 31, 2021 presented by Brian Green of AndCo. Market value/allocation of assets as of March 31, 2021 is $149,536,470. Current month – total portfolio outperformed the benchmark: 2.55% vs. 1.61% index. 3-month performance – total portfolio outperformed the benchmark: 3.90% vs. 2.86% index. Year-to date performance – total portfolio outperformed the benchmark: 3.90% vs. 2.86% index. 1-year performance – total portfolio outperformed the benchmark: 37.69% vs. 36.14% index. 3-year performance – total portfolio underperformed the benchmark: 9.47% vs. 10.68% index. Inception – total portfolio underperformed the benchmark: 8.50% vs. 9.72% index. 1 Brian reported that equity markets continued to be the strongest performers for the first quarter of 2021, with small cap value stocks in favor as we continue to see the economy reopen. Brian reported that the fixed income portion of the city’s portfolio reflects negative returns for the quarter due to rising interest rates. Brian also reported that the real estate portion of the city’s portfolio is positive and encouraging. The complete AndCo Investment Performance Review report dated March 31, 2021 is on file in Finance office. Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 PGIM Real Estate Prisa II LP Distribution letter dated March 26, 2021 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 PGIM Real Estate Quarterly Insights – United States, 1Q 2021 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 LEGAL VanOverbeke, Michaud & Timmony, P.C. memo re: Public Meetings – COVID-19, dated April 1, 2021. Tom Michaud, retiree health care investment board attorney, stated that this memo references the Michigan Open Meetings Act that was amended twice in 2020 to allow public bodies to meet remotely during the COVID-19 pandemic. Tom stated that the retiree health care investment board can continue to meet remotely at this time. Moved by Lee Collick to receive and file Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 OTHER Annual advisor and consultant review – In accordance with Board policy, each year one existing advisors/consultants is reviewed along with prospective advisors/consultants. The investment advisor is due for review. Lee Collick proposed to have the retiree health care board investment advisor prepare a presentation outlining the portfolio’s performance in comparison to the investment policy guidelines and indexes and present it to the board at the next meeting. Moved by Lee Collick to have the retiree health care board investment advisor prepare a presentation outlining the portfolio’s performance in comparison to the investment policy guidelines and indexes, and to table the decision until after the presentation at the next meeting. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 FY 2021-2022 training budget request Julie Rudd requested that the trustees establish the training budget for FY 2021-22 and stated that the budget for FY 2020-21 was $1,250.00, with nothing spent year-to-date. Moved by Lee Collick to set the FY 2021-22 training budget at $1,250.00. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 NEXT MEETING AND ADJOURNMENT Next regular meeting is scheduled immediately following the retirement system board meeting at approximately 8:30 a.m. on Friday, May 21, 2021, via remote Zoom webinar. Moved by Lee Collick to adjourn the meeting (8:40 a.m.) and confirm the next meeting for May 21, 2021 immediately following retirement system board meeting at approximately 8:30 a.m. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 2