General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, August 21, 2014 ___________________________________________________________________ __ _ __ _ Location: Room #201 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Chairperson Weiler called the meeting to order at 1:34 p.m. BOARD MEMBERS PRESENT: Rich Weiler, Chairperson Brian Baker, Secretary Jennifer Varney, Treasurer Paul Henig, Trustee BOARD MEMBERS ABSENT: Todd Marsh, Trustee (excused) ALSO PRESENT: Walt Hessell, Pension Administrator; Thomas Michaud, Legal Counsel, VanOverbeke, Michaud & Timmony, P.C. APPROVAL OF AGENDA: Motion by Baker, supported by Henig, to approve the agenda as presented. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Varney, supported by Baker, to approve the minutes of the regular meeting held July 17, 2014. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL Michaud requested that the Board recess to closed session for the purposes of discussing litigation. Motion by Baker, supported by Henig, to recess to closed session for the purposes of discussing litigation. Roll call vote: Weiler: Aye Baker: Aye Varney: Aye Henig: Aye Board recessed to closed session. Separate minutes of the closed session were compiled. Board reconvened from closed session. Motion by Baker, supported by Weiler, to reaffirm Policy Resolution 07-01 –Calculation of Asset Transfer Under Reciprocal Retirement Act and to continue to follow the policy as detailed therein. Ayes: All. Motion carried unanimously. Motion by Baker, supported by Henig, to authorize Michaud to pursue a “books and records” demand on Simon Property Group under Section 220 of the Delaware General Corporation Law. Ayes: All. Motion carried unanimously. Michaud also commented on items as they appeared on the agenda. CONSENT AGENDA: Motion by Varney, supported by Henig, to receive and file consent items I A through I D-1. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for August 1, 2014 from Comerica Bank showing 349 active retirees with a payout for July 2014 of $845,801.16 and a year-to-date payout of $6,789,227.18. B. Cash and Asset Statements as of July 31, 2014 from Comerica Bank and Merrill Lynch showing a total market value of $117,211,435.62 comprised as follows: Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.74% Comerica Bank $873,928.87 21.33% 15.44% PIMCO 18,097,218.06 10.67% 7.61% McDonnell 8,915,176.12 15% 15.52% Earnest Partners 18,186,929.93 8% 9.08% Herndon Capital 10,640,378.78 8% 9.58% MFS 11,227,466.75 5.33% 6.98% Victory 8,184,956.59 5.33% 6.95% Winslow 8,151,313.43 5.33% 6.91% Janus Capital 8,099,264.61 8.5% 7.47% INVESCO 8,750,711.42 8.5% 9.43% Allianz - NFJ 11,052,819.01 Cohen & Steers – 4% 4.29% 5,031,272.05 REIT C. Correspondence 1. June 27, 2014 Settlement and Monitoring Report – Class Action. 2. Litigation Report as of June 30, 2014 – Caterpillar. 3. Unified Managed Account Information received from Merrill Lynch July 15, 2014 – INVESCO International Growth 4. Email correspondence and letter sent to Merrill Lynch and Comerica dated July 17, 2014 regarding the transfer of funds for the payment of benefits. 5. Municipal Entity and Obligated Person Certification dated July 17, 2014. 6. Form ADV Part 2A – Winslow Capital Management - 2014. 7. Form ADV Part 2A – WAMCO - 2014. 8. Wire transfer notifications received from Merrill Lynch dated July 24, 2014 confirming transfer of funds for the payment of retirement benefits. 9. “The Advocate for Institutional Investors” – Summer 2014. 10. “Pension & Investments” magazine dated July 21 and August 4, 2014. D. 1. Payable from System Assets for the quarterly service period ending September 30, 2014 through Merrill Lynch Consults Quarterly management fees from NFJ in the amount of $20,013.52; from Herndon in the amount of $17,293.37; from Winslow in the amount of $13,191.12 from Victory in the amount of $13,341.73; from Janus in the amount of $15,810.62; from Earnest Partners in the amount of $35,475.83; from PIMCO in the amount of $20,586.53; MFS in the amount of $21,519.41. 2. Payable from City Assets for the quarterly service period ending June 30, 2014 Quarterly investment consultant fees from Merrill Lynch Consulting Services in the amount of $6,485.33 and custodian banking services from Comerica Bank in the amount of $4,737.58. REGULAR AGENDA: II. OLD BUSINESS: A. GASB Statement No. 67 Plan Reporting and Accounting Schedules June 30, 2014 Motion by Henig, supported by Baker, to receive and file the GASB Statement No 67 Plan Reporting and Accounting Schedules June 30, 2014 as prepared by the system actuary – Gabriel Roeder Smith & Company. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Abel / Noser Trial Measurement Hessell briefed the Board as to the no-cost, no obligation trial measurement offer made by Abel Noser with regard to auditing six months of portfolio trading activity for execution and commissions costs. Motion by Henig, supported by Varney, to table the trial measurement offer by Abel / Noser until the special meeting of August 27, 2014, at which point Tim Brice – The Brice Group – Merrill Lynch can advise on the matter Ayes: All. Motion carried unanimously. B. Pension Administration Comments Hessell informed the Board that the transition of assets from Thornburg Investment to INVESCO International was fully completed by the July 31st 2014 month end cutoff under the Merrill Lynch Consults platform. C. Trustee Comments – None. . ADJOURN: Motion by Baker, supported by Weiler, to adjourn the meeting at 2:41p.m. Ayes: All. Motion carried unanimously.  Respectfully Submitted, ___________________________________ Brian Baker, Secretary