General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday February 21, 2019 Location: Room #202 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2783 Chairperson Weiler called the meeting to order at 12:07 p.m. BOARD MEMBERS PRESENT: Richard Weiler, Chairperson Mary Jaganjac, Treasurer / Acting Secretary Todd Marsh, Trustee Paul Henig, Trustee BOARD MEMBERS ABSENT: Jennifer Varney, Secretary ALSO PRESENT: Frank Judd, Legal Counsel Tim Brice, The Brice Group Ryan Clark, Treasury Service Coordinator APPROVAL OF AGENDA: Motion by Jaganjac, supported by Marsh, to approve the agenda as presented. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Henig, supported by Jaganjac, to approve the minutes of the regular meeting held January 17, 2019. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL: None CONSENT AGENDA: Motion by Henig, supported by Jaganjac, to receive and file consent items I.A through I.D2 Ayes: All. Motion carried unanimously. 1 RECEIVE AND FILE: A. Benefit Register Listing for February 1, 2019 from Comerica Bank showing 364 active retirees with a payout for the benefit month of $ $931,343 and a year-to- date of $ $1,861,365. B. Cash and Assets Statement as of January 31, 2019 from Comerica Bank and Morgan Stanley Desired Percentage Asset Class Manager / Fund $ Balance Allocation 2.00% 2.79% LARGE CAP GROWTH CLEARBRIDGE $ 2,913,551 2.00% 2.83% LARGE CAP GROWTH ISHARES RUSSELL 1000 GROWTH ETF $ 2,959,648 3.00% 2.45% LARGE CAP GROWTH JANUS CAPITAL $ 2,561,889 4.00% 3.69% LARGE CAP VALUE CONFLUENCE $ 3,851,332 3.00% 3.51% LARGE CAP VALUE ISHARES RUSSELL 1000 VALUE ETF $ 3,665,627 4.00% 3.61% LARGE CAP VALUE MFS $ 3,767,336 6.00% 4.78% LARGE CAP CORE JOHN HANCOCK $ 4,990,204 4.00% 4.09% LARGE CAP CORE ISHARES S&P 500 ETF $ 4,269,852 4.00% 4.21% SMID CAP VALUE EDGE $ 4,391,385 11.00% 7.68% SMID CORE EARNEST PARTNERS $ 8,021,611 11.00% 10.27% INTERNATIONAL CAMBIAR $ 10,728,227 6.00% 7.01% INTERNATIONAL WCM $ 7,319,434 6.00% 5.77% INTERNATIONAL HARDING LOEVNER $ 6,027,966 1.50% 1.96% EMERGING HARDING LOEVNER HLEMX $ 2,041,816 1.50% 1.31% EMERGING LAZARD $ 1,367,403 2.00% 2.56% REITS PRINCIPAL $ 2,672,000 12.00% 12.41% FIXED INCOME WESTERN ASSET MANAGEMENT $ 12,954,832 12.00% 12.26% FIXED INCOME BOYD WATTERSON $ 12,801,936 5.00% 4.97% MLPS CUSHING $ 5,188,109 0.00% 1.84% CASH CASH $ 1,921,106 100.00% 100.00% $ 104,415,261 C. Correspondence items: Item Date Communication Robbins Geller Rudman & Dowd Shareholder Class 1 Jan 25, 2019 Actions Portfolio Report 2 Jan 15, 2019 To Morgan Stanley: funds xfer request 3 Jan 22, 2019 From Morgan Stanley: wire transfer confirmation 4 Jan 21, 2019 Pension & Investments publication 5 Feb 04, 2019 Pension & Investments publication 6 Jan 18, 2019 From Morgan Stanley: consolidated trade confirmation 7 Feb 01, 2019 From Morgan Stanley: consolidated trade confirmation 8 Jan 29, 2019 From Morgan Stanley: consolidated trade confirmation 9 Jan 23, 2019 From Morgan Stanley: consolidated trade confirmation 10 Jan 07, 2019 To Morgan Stanley: money manager fee approval 2  From Morgan Stanley: confirmation of personal and 11 Jan 23, 2019 account information 12 Jan 25, 2019 From Morgan Stanley: Retirement Plan Fee Changes 13 Jan 15, 2019 From Morgan Stanley: confirmation of instructions From Morgan Stanley: confirmation of personal and 14 Jan 26, 2019 account information 15 Dec 31, 2018 From Boyd Watterson: Statement of Accounts Robbins Geller Rudman & Dowd Shareholder Class 16 Dec 28, 2019 Actions Portfolio Report 17 Jan 22, 2019 From Hartford Funds: Annual Report D. Approval items: 1. Payable from City Assets for the service period ending January 31, 2019: Comerica bank service fees for 10/1/2018 through 12/31/2018 totaling $4,850. 2. Payable from Fund Assets for the service period ending January 31, 2019: Morgan Stanley, Boyd Watterson and WCM asset management fees for 10/1/2018 through 12/31/2018 in the amounts of: $135,004.72, $4,753.00 and $14,721.96, respectively. . REGULAR AGENDA: II. OLD BUSINESS A. Service Retirement – Pam Ambriez Pam Ambriez to receive Straight Life benefits at a monthly benefit and with a one- time Annuity Withdrawal amount to be provided at the special meeting the first week of March. B. Service Retirement – Dawn Felosak Dawn Felosak to receive Option B benefits w/ Pop-Up and no Annuity Withdrawal at a monthly benefit to be provided at the special meeting the first week of March. III. NEW BUSINESS A. Change in Retiree Status – Molly Schultz (deceased) Motion by Henig, supported by Marsh, to approve termination of straight life benefits in the gross amount of $259.06 for retiree, Molly Schultz, due to her death on December 14, 2018. B. Quarterly Performance Review - The Brice Group, Morgan Stanley 3  Domestic markets are responding to three major influences: - Bond market interest is cooling with securities entering maturity and money leaving the market for better prospects, resulting in a roll-off effect - International tariffs stymied growth as a result of companies having either a) less money to spend or b) they are postponing spending for a better international trade atmosphere - Quantitative tightening and unwinding at the Federal Reserve including a) raising interest rates and b) reducing balance sheet debt i. New minutes from the latest Fed Reserve meeting indicated both rates and debt reduction is done for now Possible emerging market managers for review next quarter, noting the current direction of other countries banking policy MLPs facing lots of interest from private equity firms Trade talks set to be finalized 1st week of March with synopsis to be relayed at special meeting with GERS board that same week. C. Pension Administration Comments D. Trustee Comments: None ADJOURN: Motion by Marsh, supported by Henig, to adjourn the meeting at 2:08 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Mary Jaganjac, Treasurer / Acting Secretary 4