General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, May 18, 2017 ___________________________________________________________________ __ _ ___ Location: Room – City Council Conference Room #201 40555 Utica Road, Sterling Heights, MI 48313 Telephone: (586) 446-2331 Acting Chairperson Varney called the meeting to order at 1:30 p.m. BOARD MEMBERS PRESENT: Jennifer Varney, Acting Chairperson Julie DeClercq, Acting Secretary / Interim Treasurer Paul Henig, Trustee Todd Marsh, Trustee BOARD MEMBERS ABSENT: Richard Weiler, Chairperson (Excused) ALSO PRESENT: Walt Hessell, Pension Administrator; Thomas Michaud (excused absence), 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 Marsh, supported by Henig, to approve the minutes of the regular meeting held April 20, 2017. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL – (excused absence) No report. CONSENT AGENDA: Motion by DeClercq, supported by Varney, to receive and file consent items I A through I D-1. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: 1 A. Benefit register listing for May 1, 2017 from Comerica Bank showing 361 active retirees with a payout for April 2017 of $905,072.17 and a year-to-date payout of $4,508,981.91. B. Cash and Asset Statements as of April 30, 2017 from Comerica Bank and Morgan Stanley showing a total market value of $110,000,983.78 comprised as follows: Desired Asset Class / Percentage Allocation 0% Cash 0.03% Comerica Bank $ 27,659.56 12% Fixed Income 12.40% Boyd Watterson 13,636,237.01 12% Fixed Income 12.45% WAMCO 13,696,556.03 17% Small Cap 16.36% Earnest Partners 18,000,777.60 5% Large Cap Value 5.08% Confluence 5,579,723.19 5% Large Cap Value 5.35% MFS 5,882,125.84 1% Large Cap Value 1.08% iShares Val Index 1,193,202.72 4% Large Cap Growth 4.34% AMI 4,771,220.96 3% Large Cap Growth 2.80% Winslow 3,077,797.81 4% Large Cap Growth 3.38% Janus Capital 3,715,991.03 1% Large Cap Growth 0.72% iShares Gr Index 795,813.53 7% Large Cap Core 7.06% London 7,767,758.51 5% Large Cap Core 4.31% iShares S&P Index 4,745,683.60 8% Large Cap Global 8.54% INVESCO 9,397,423.81 8% Large Cap Global 8.43% Cambiar 9,271,145.31 2% REITS 2.20% Principal REIT 2,425,276.79 6% MLP’s 5.47% Cushing Asset Mgt 6,016,590.48 C. Correspondence 1. Email and letter correspondence with Morgan Stanley dated April 17, 2017 regarding the transfer of funds for the payment of benefits. 2. Announcement from VanOverbeke Michaud & Timmony, P.C. regarding the addition of two new partners Francis E. Judd and Aaron L. Castle. 3. Letter sent to Comerica Bank for the deposit of securities litigation recovery check in the amount of $1,574.79 – Bank of New York Mellon Corp dated April 18, 2017. 4. Email and letter correspondence with Morgan Stanley dated April 20, 2017 regarding the payment of money manager fees –Boyd Watterson. 5. Email correspondence to Morgan Stanley and VanOverbeke, Michaud & Timmony, P.C.regarding the executed SOPG dated April 21, 2017. 6. Confirmation of transfer of funds received from Morgan Stanley dated April 21, 2017 for the payment of benefits. 7. Letter sent to Comerica Bank for the deposit of securities litigation recovery check in the amount of $103.63 – Vestas Wind Systems dated April 24, 2017 8. MAPERS 2017 Spring Conference Update dated April 24, 2017. 9. Confirmation of money manager fee payment received from Morgan Stanley dated April 24, 2017. 10. April 28 2017 Settlement Report – securities litigation. 11. Form ADV Brochure received from Cambiar Investors dated March 27, 2017. 12. Form ADV Brochure received from Principal Global Advisors dated March 30, 2017. 2  13. Form ADV Brochure received from Winslow Capital dated March 27, 2017. 14. Form ADV Brochures received from MFS Institutional dated April 2017. 15. Form ADV Brochure received from Janus Capital dated April 24, 2017. 16. Form ADV Brochure received from Boyd Watterson dated April 28, 2017. 17. Form ADV Brochure received from The London Company dated April 15, 2017. 18. Form ADV Brochure received from Earnest Partners dated March 29, 2017. 19. “Pension & Investments” magazines dated April 17 & May 1, 2017. D. Approve Invoices for Payment 1. Payable from System Assets for the quarter ending March 31, 2017 Quarterly management fees from Morgan Stanley in the amount of $159,490.61. REGULAR AGENDA: II. OLD BUSINESS: A. One-Time $500 Payment for Sterling Heights Police Clerical Association Retirees Motion by Marsh, supported by Henig, to receive and file the summary update for the one-time $500 payment for Sterling Heights Police Clerical Association Retirees and authorize the payments due for the June 1, 2017 payout date to Colleen Muraszewski. Ayes: All. Motion carried unanimously. B. Processing of Pop-Up Election for Anna Angelo Motion by Henig, supported by DeClercq, to approve the processing of the pop-up election for retiree Anna Angelo, effective April 28, 2017 (spouse/beneficiary date of death) with a revised monthly benefit of $1,899.33. Ayes: All. Motion carried unanimously. III. NEW BUSINESS A. Pension Administration Comments 1. Annual Update & Review RFP Status – Service Providers Motion by Henig, supported by Marsh, to receive and file the Annual Update and Review RFP (request for proposals) Status – Service Providers. Ayes: All. Motion carried unanimously. Motion by Henig, supported by Varney, to waive the formal five-year RFP process for Comerica Bank, (custodial bank) due to their exceptional service at or near the original contract fee schedule price and to extend their service contract. Ayes: All. Motion carried unanimously. 2. Review of Proposed 2017 /2018 GERS Meeting Schedule 3  Motion by DeClercq, supported by Marsh, to approve the proposed 2017 / 2018 GERS meeting schedule. Ayes: All. Motion carried unanimously. C. Trustee Comments – None. ADJOURN: Motion by Henig supported by Varney, to adjourn the meeting at 1:38 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, __________________________________________ Julie DeClercq, Acting Secretary / Interim Treasurer 4