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 at the City Hall building in conference room # 122 on Friday August 27, 2021, at approximately 8:30 a.m. The meeting was called to order at 9:08 a.m. Attendance / Roll Call: PRESENT: Lee Collick - Chairperson Bret Nelson - Vice Chairperson Kyle DuBuc - Trustee Paul Brake - Trustee Monica Hunt - 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 There were no public attendees / comments. Board approval of the agenda for the August 27, 2021, meeting Moved by Lee Collick to approve the agenda for the August 27, 2021 meeting Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 Board approval of the draft minutes for the July 16, 2021 meeting Moved by Lee Collick to approve the draft minutes for the July 16, 2021 meeting Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 INVESTMENTS Investment performance review presented by Brian Green of AndCo. Market value/allocation of assets as of July 31, 2021, is $157,196,850. Current month – total portfolio outperformed the benchmark: 0.68% vs. 0.65% index. 3-month performance – total portfolio underperformed the benchmark: 3.03% vs. 3.10% index. Year-to date performance – total portfolio outperformed the benchmark: 10.81% vs. 9.69% index. 1-year performance – total portfolio outperformed the benchmark: 25.39% vs. 23.31% index. 3-year performance – total portfolio underperformed the benchmark: 10.93% vs. 11.79% index. Inception – total portfolio underperformed the benchmark: 9.44% vs. 10.57% index. Brian reported that the month of July was positive overall and that there was a “market retest” due to the upcoming return to school, the COVID-19 Delta variant and vaccinations, and continued uncertainty of reopening plans. Brian also reported that the positive performance was led by the domestic equity market, with Seizert Mid Cap and Ancora Small-Mid Cap funds performing very well in the last 12 months. Brian reported the city’s fixed income portfolio had small positive returns in July and that the real estate portfolio (Prisa II) was up 5% in the 2nd quarter of 2021. 1 The complete AndCo Investment Performance Review report dated July 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 Detailed Management Fee Report for Quarter ending June 30, 2021 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 PGIM Real Estate Prisa II LP Investor Statement Ending 2Q 2021 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 PGIM Real Estate Prisa II Performance Report 2nd Quarter 2021 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 PGIM Real Estate Prisa II 2Q21 Investor Call Summary dated August 4, 2021 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 PGIM Real Estate Prisa II Fund Review 2Q 2021 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 PGIM Real Estate Prisa II LP Statement of Assets & Liabilities as of June 30, 2021 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 PGIM Real Estate Prisa II UHC, LP Statement of Assets & Liabilities as of June 30, 2021 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 Seizert Capital Partners (SCP) Quarterly Report dated June 30, 2021 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 Seizert Capital Partners (SCP) Directions Newsletter 2Q2021 dated June 30, 2021 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 Seizert Capital Partners (SCP) GIPS Verification Micro Cap letter July 2021 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 LEGAL 2 None OTHER 2021 Renewal for Fiduciary Liability Insurance coverage – as discussed during the retirement system meeting, Tom Michaud, board attorney, suggested that the fiduciary insurance representative attend a future meeting to inform the board what the policy does and does not cover. Julie Rudd will contact the representative to arrange their attendance at possibly the next retirement system board meeting in September 2021. NEXT MEETING AND ADJOURNMENT Next regular meeting is scheduled immediately following the retirement system board meeting at approximately 8:30 a.m. on Friday, September 24, 2021 at the City Hall Building at 203 South Troy Street, in the 1st floor conference room # 122. Moved by Lee Collick to adjourn the meeting (9:21 a.m.) and confirm the next meeting for September 24, 2021, immediately following retirement system board meeting at approximately 8:30 a.m. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 3