General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, November 20, 2014 ___________________________________________________________________ __ _ __ _ Location: Room – City Council Conference Room #201 40555 Utica Road, Sterling Heights, MI 48313 Telephone: (586) 446-2331 Chairperson Weiler called the meeting to order at 1:34 p.m. BOARD MEMBERS PRESENT: Rich Weiler, Chairperson Jennifer Varney, Acting Secretary / Treasurer Todd Marsh, Trustee Paul Henig, Trustee BOARD MEMBERS ABSENT: Brian Baker, Secretary (Excused) ALSO PRESENT: Walt Hessell, Pension Administrator; Thomas Michaud, Legal Counsel, VanOverbeke, Michaud & Timmony, P.C. APPROVAL OF AGENDA: Motion by Marsh, supported by Henig, to approve the agenda as presented. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Varney, supported by Weiler, to approve the minutes of the regular meeting held October 16, 2014. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL Michaud informed the Board that the review of the investment consultant contract with Morgan Stanley has been finalized and can now be executed by the Board. Michaud commented on items as they appeared on the agenda. CONSENT AGENDA: Motion by Varney, supported by Marsh, to receive and file consent items I A through I D-2. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for November 1, 2014 from Comerica Bank showing 352 active retirees with a payout for October 2014 of $846,621.83 and a year-to-date payout of $9,325,961.96. B. Cash and Asset Statements as of October 31, 2014 from Comerica Bank and Merrill Lynch showing a total market value of $118,005,168.20 comprised as follows: Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.85% Comerica Bank $ 1,002,040.06 21.33% 15.48% PIMCO 18,271,368.04 10.67% 7.65% McDonnell 9,020,582.63 15% 15.93% Earnest Partners 18,799,141.42 8% 9.20% Herndon Capital 10,854,332.33 8% 9.89% MFS 11,664,484.66 5.33% 7.11% Victory 8,393,212.81 5.33% 7.16% Winslow 8,454,223.11 5.33% 7.16% Janus Capital 8,455,011.19 8.5% 7.26% INVESCO 8,571,993.81 8.5% 8.90% Allianz - NFJ 10,498,133.41 Cohen & Steers – 4% 3.41% 4,020,644.73 REIT C. Correspondence 1. Litigation Report as of September 30, 2014. 2. Employer Plan Annual Revenue Information Report July 2013 –June 2014 received from Merrill Lynch. 3. Wire transfer notification received from Merrill Lynch dated October 3, 2014 regarding the payment of money manager fees. 4. Form ADV Part 2B received from Victory dated October 14, 2014. 5. Form ADV Part 2B received from Merrill Lynch dated October 14, 2014. 6. Email correspondence received from Morgan Stanley Graystone Consulting dated October 14, 2014 regarding upgraded status of PIMCO to approved from focus after the departure of William Gross. 7. Email correspondence and letter sent to Merrill Lynch and Comerica Bank dated October 16, 2014 regarding the transfer of funds for the payment of benefits. 8. Letter sent to Comerica Bank dated October 21, 2014 regarding deposit of securities litigation settlement check from Coventry Healthcare, Inc. 9. Portfolio Monitoring Report dated October 25, 2013. 10. Wire transfer notifications received from Merrill Lynch dated October 22, 2014 confirming the transfer of funds for the payment of benefits. 11. Form ADV Part 2A received from Winslow dated October 24, 2014. 12. “Pension & Investments” magazines dated October 13 & 27 2014. D. 1. Payable from City Assets for the quarterly service period ending September 30, 2014: Quarterly investment consulting fees from Merrill Lynch Consults in the amount of $6,485.33 and custodian banking service fees from Comerica Bank in the amount of $4,724.56. 2. Payable from System Assets for the quarterly service period ending December 31, 2014: Quarterly management fees from Merrill Lynch Consults - MFS in the amount of $21,452.29; from Merrill Lynch Consults SPA – McDonnell in the amount of $1,792.73; from Merrill Lynch Consults – Janus in the amount of $15,548.73; from Merrill Lynch Consults – Winslow in the amount of $12,917.50; from Merrill Lynch Consults – Victory in the amount of $12,898.17; from Merrill Lynch Consults – Herndon in the amount of $17,201.06; from Merrill Lynch Consults – NFJ in the amount of $18,764.72; from Merrill Lynch Consults – INVESCO in the amount of $13,998.84; from Merrill Lynch Consults – PIMCO in the amount of $20,499.86 and from Merrill Lynch Consults – Earnest in the amount of $34,473.98. REGULAR AGENDA: II. NEW BUSINESS: A. Change in Retiree Status – Edward Durbin (Deceased) Motion by Varney, supported by Henig, to approve Jo Ann Durbin (survivor/retiree) to receive Option A benefits equal to 100% that of the deceased retiree Edward Durbin in the monthly gross amount of $936.50. Ayes: All. Motion carried unanimously. B. Change in Retiree Status – David James (Deceased) Motion by Varney, supported by Henig, to approve Linda James (survivor/retiree) to receive Option A benefits equal to 100% that of the deceased retiree David James in the monthly gross amount of $1,335.88. Ayes: All. Motion carried unanimously. C. Pension Administration Comments – None. D. Trustee Comments - None. . ADJOURN: Motion by Varney, supported by Marsh, to adjourn the meeting at 1:52 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Jennifer Varney, Acting Secretary / Treasurer