General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, April 20, 2017 ___________________________________________________________________ __ _ ___ 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 1:30 p.m. BOARD MEMBERS PRESENT: Rich Weiler, Chairperson Jennifer Varney, Vice Chairperson Julie DeClercq, Acting Secretary / Interim Treasurer Paul Henig, Trustee Todd Marsh, Trustee BOARD MEMBERS ABSENT: None. 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 amended to include the approval of additional invoices for payment under Item I-D. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Henig, supported by Marsh, to approve the minutes of the regular meeting held March 16, 2017. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL No formal report. Michaud 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-2. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: 1 A. Benefit register listing for April 1, 2017 from Comerica Bank showing 360 active retirees with a payout for March 2017 of $912,308.96 and a year-to-date payout of $3,603,909.74. B. Cash and Asset Statements as of March 31, 2017 from Comerica Bank and Morgan Stanley showing a total market value of $109,525,308.16 comprised as follows: Desired Asset Class / Percentage Allocation 0% Cash 0.10% Comerica Bank $ 113,307.55 12% Fixed Income 12.35% Boyd Watterson 13,522,296.69 12% Fixed Income 12.40% WAMCO 13,581,662.32 17% Small Cap 16.37% Earnest Partners 17,926,808.43 5% Large Cap Value 5.14% Confluence 5,625,526.17 5% Large Cap Value 5.41% MFS 5,921,455.00 1% Large Cap Value 1.09% iShares Val Index 1,195,490.94 4% Large Cap Growth 4.29% AMI 4,693,899.07 3% Large Cap Growth 2.77% Winslow 3,031,523.29 4% Large Cap Growth 3.34% Janus Capital 3,662,431.07 1% Large Cap Growth 0.72% iShares Gr Index 793,186.00 7% Large Cap Core 7.12% London 7,800,959.44 5% Large Cap Core 4.29% iShares S&P Index 4,700,318.70 8% Large Cap Global 8.39% INVESCO 9,194,224.56 8% Large Cap Global 8.32% Cambiar 9,108,145.24 2% REITS 2.20% Principal REIT 2,414,825.67 6% MLP’s 5.70% Cushing Asset Mgt 6,239,248.02 C. Correspondence 1. Confirmation of account change received from Morgan Stanley dated March 7, 2017 regarding new allocation to IShares Russell 1000 Growth ETF. 2. Confirmation of account change received from Morgan Stanley dated March 10, 2017 regarding new allocation to IShares Russell 1000 Value ETF. 3. Confirmation of Personal and Account Information received from Morgan Stanley dated March 10, 2017. 4. Prospectus for IShares Russell 1000 Value ETF dated March 14, 2017. 5. Letter and email correspondence with Morgan Stanley dated March 17, 2017 regarding the transfer of funds for the payment of the April 1st benefits. 6. Determination notice received from the JP Morgan SEC Fair Fund dated March 21, 2017 regarding claim status and eligible loss amount. 7. Confirmation of the transfer of funds received from Morgan Stanley dated March 22, 2017 for the payment of the April 1st benefits. 8. Fee information notice received from Morgan Stanley dated March 27, 2017. 9. March 31, 2017 Settlement Report – Securities Litigation. 10. DOL Investment Advice notice received from Morgan Stanley dated April 3, 2017. 11. 19 tax packages including Form’s K-1 for the tax year ending December 31, 2016 for the Master Limited Partnership holdings. 12. “Pension & Investments” magazine dated March 20 & April 3, 2017. D. 1. Payable from System Assets for the service period ending March 31, 2017 2  Quarterly management fees from Boyd Watterson in the amount of $5,070.00 2. Payable from City Assets for the service period ending March 31, 2017 Quarterly custodian banking fees from Comerica Bank in the amount of $4,798.25. REGULAR AGENDA: II. OLD BUSINESS: A. GERS Statement of Ojectives, Policies and Guidelines Revised Motion by DeClercq, supported by Henig, to receive and approve the April 20, 2017 restated GERS Statement of Objectives, Policies and Guidelines regarding fund investements. Ayes: All. Motion carried unanimously. III. NEW BUSINESS A. Change in Retiree Status – Walter Fox III (Deceased) Motion by Henig, supported by Marsh, for Tamara Fox (survivor / retiree) to receive Option A benefits equal to 100% that of the deceased retiree Walter Fox III in the monthly gross amount of $3,593.29. Ayes: All. Motion carried unanimously. B. Pension Administration Comments 1. Draft Agenda May 24, 2017 Special Meeting Motion by DeClercq, supported by Marsh, to approve the agenda for the May 24, 2017 special meeting as presented. Ayes: All. Motion carried unanimously. 1. Update of Disability Retiree Medical Exams and Income Verification Motion by Marsh, supported by Henig, to receive and file the status report for the Disability Retiree Medical Exams and Income Verification. Ayes: All. Motion carried unanimously. C. Trustee Comments - None ADJOURN: Motion by Varney, supported by Weiler, to adjourn the meeting at 1:36 p.m. 3 Ayes: All. Motion carried unanimously. Respectfully Submitted, _________________ ________________________ Julie DeClercq, Acting Secretary / Interim Treasurer 4