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 the city commission chambers room # 121 on Friday October 15, 2021, at 8:30 a.m. The meeting was called to order at 8:37 a.m. Attendance / Roll Call: PRESENT: Lee Collick - Chairperson Bret Nelson - Vice Chairperson Kyle DuBuc - Trustee Monica Hunt – Trustee Paul Brake - 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 October 15, 2021, meeting Moved by Lee Collick to approve the agenda for the October 15, 2021 meeting Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 Board approval of the draft minutes for the September 24, 2021 meeting Moved by Lee Collick to approve the draft minutes for the September 24, 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 September 30, 2021, is $153,982,928. Current month – total portfolio underperformed the benchmark: -3.01% vs. -2.95% index. 3-month performance – total portfolio underperformed the benchmark: -0.64% vs. -0.62% index. Year-to date performance – total portfolio outperformed the benchmark: 9.36% vs. 8.30% index. 1-year performance – total portfolio outperformed the benchmark: 21.61% vs. 19.50% index. 3-year performance – total portfolio underperformed the benchmark: 10.23% vs. 10.73% index. Inception – total portfolio underperformed the benchmark: 8.75% vs. 9.85% index. Brian reported that September is historically the worst month of the year with regards to stock market performance. Brian also reported that although September’s performance was relatively flat, the calendar year-to-date returns for the city’s portfolio continue to be strong. Brian also reported that the Prisa II Real Estate quarterly performance numbers were just announced yesterday (not available to include in the presentation booklet) and that the Prisa II 3Q 2021 allocation had a net return of 7.5%. 1 Kyle DuBuc asked at what point in time should the retirement board reevaluate the long-term investment rate of return (IRR) currently used, which is 7.25%. Julie Rudd replied anytime and that the Board has the actuary, Gabriel, Roeder & Smith (GRS), conducts an experience study every 5 years, which is also the time for the board to discuss the IRR. The complete AndCo Investment Performance Review report dated September 30, 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 September 24, 2021 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 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, November 19, 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 (8:46 a.m.) and confirm the next meeting for November 19, 2021, immediately following retirement system board meeting at approximately 8:30 a.m. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 5/0 2