General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday May 16, 2019 Location: Room #202 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2783 Chairperson Weiler called the meeting to order at 12:05 p.m. BOARD MEMBERS PRESENT: Richard Weiler, Chairperson Jennifer Varney, Secretary Paul Henig, Trustee Todd Marsh, Trustee Mary Jaganjac, Treasurer BOARD MEMBERS ABSENT: None ALSO PRESENT: Tom Michaud, Legal Counsel Tim Brice, Morgan Stanley, The Brice Group Ryan Clark, Treasury Service Coordinator APPROVAL OF AGENDA: Motion by Henig, 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 following: - Regular Meeting of April 18, 2019 Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL: Reviewed status of the Lang case. CONSENT AGENDA: Motion by Jaganjac, supported by Henig, 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 May 1, 2019 from Comerica Bank showing 365 active retirees with a payout for the benefit month of $ $933,379 and a year-to- date of $ $4,663,176. B. Cash and Asset Statements as of April 31, 2019 from Comerica Bank and Morgan Stanley showing a total market value comprised as follows: Desired Percentage Asset Class Manager / Fund $ Balance Allocation 2.00% 2.72% LARGE CAP GROWTH CLEARBRIDGE $ 2,972,443.43 2.00% 3.01% LARGE CAP GROWTH ISHARES RUSSELL 1000 GROWTH ETF $ 3,283,005.44 3.00% 2.59% LARGE CAP GROWTH JANUS CAPITAL $ 2,823,533.51 4.00% 3.93% LARGE CAP VALUE CONFLUENCE $ 4,294,863.04 3.00% 3.59% LARGE CAP VALUE ISHARES RUSSELL 1000 VALUE ETF $ 3,917,709.25 4.00% 3.74% LARGE CAP VALUE MFS $ 4,079,301.74 6.00% 4.60% LARGE CAP CORE JOHN HANCOCK $ 5,019,797.63 4.00% 4.23% LARGE CAP CORE ISHARES S&P 500 ETF $ 4,622,582.80 4.00% 4.15% SMID CAP VALUE EDGE $ 4,534,267.35 11.00% 7.50% SMID CORE EARNEST PARTNERS $ 8,193,194.04 11.00% 9.74% INTERNATIONAL CAMBIAR $ 10,630,540.04 6.00% 7.44% INTERNATIONAL WCM $ 8,120,930.68 6.00% 6.06% INTERNATIONAL HARDING LOEVNER $ 6,617,799.41 1.50% 1.99% EMERGING HARDING LOEVNER HLEMX $ 2,177,809.22 1.50% 1.17% EMERGING LAZARD $ 1,281,511.02 2.00% 2.58% REITS PRINCIPAL $ 2,822,113.57 12.00% 11.74% FIXED INCOME WESTERN ASSET MANAGEMENT $ 12,818,388.28 12.00% 11.63% FIXED INCOME BOYD WATTERSON $ 12,695,937.56 5.00% 4.83% MLPS CUSHING $ 5,276,469.30 0.00% 2.74% CASH CASH $ 2,994,374 100.00% 100.00% $ 109,176,571 2 C. Correspondence items: Item Date Communication 1 Feb 01, 2019 Real Estate Investment Today 2 Feb 01, 2019 Employee Benefit News 3 Feb 15, 2019 From Morgan Stanley: trade confirmation 4 Feb 18, 2019 Pension & Investments publication Robbins Geller Rudman & Dowd Shareholder Class 5 Feb 22, 2019 Actions Portfolio Report 6 Feb 25, 2019 From Morgan Stanley: confirmation of instructions 7 Feb 25, 2019 From Morgan Stanley: confirmation of instructions 8 Feb 26, 2019 Western Assets Smash Series Prospectus 9 Feb 26, 2019 From Morgan Stanley: wire transfer confirmation 10 Mar 01, 2019 From Morgan Stanley: consolidated trade confirmation 11 Mar 04, 2019 Pension & Investments publication 12 Mar 07, 2019 From Morgan Stanley: trade confirmation 13 Mar 18, 2019 Pension & Investments publication . D. Approval items 1. Payable from City Assets for the service period ending March 31, 2019:  Q1 Comerica Bank fees Q1: $4,893.50 2. Payable from Fund Assets for the service period ending March 31, 2019: $166,360.45 total  Q1 Boyd Watterson management fees: $4,828  Q1 WCM management fees: $16,814.05  Q1 Morgan Stanley consolidated management fees: $144,718.40 3 REGULAR AGENDA: II. OLD BUSINESS: None III. NEW BUSINESS A. Change in retiree status – James Carpenter (deceased) Motion by Henig, supported by Marsh, to approve termination of Option A 100% with Annuity Withdraw retiree benefit in the amount of $4,002.13 for James Carpenter due to his death on May 7, 2019 and begin survivor retiree benefits for Debra Carpenter in the amount of $4,002.13. Ayes: All. Motion carried unanimously. B. Application for Retiree Benefits – Keri Marshall Motion by Henig, supported by Varney, to approve application for Keri Marshall Option A with pop-up with annuity withdrawal benefit effective June 22, 2019 to be processed and that final calculation request be sent to actuary upon departure once leave banks payout and FAC can be calculated. Ayes: All. Motion carried unanimously. C. Pension Administration Comments - Comerica service level transition - Actuarial RFI – Response Review D. Quarterly Market Review – Morgan Stanley The Brice Group The Quarterly Market Review consisted of the following reports: Inputs for GIC Asset Allocation – April 2019 On the Markets – May 2019 Small Cap International Equity Presentation – May 2019 Asset Allocation Review – May 2019 Investment Performance Analysis Each report was reviewed in-depth for opportunities and concerns in the market, its segments, our money managers and how they are tracking against relational indexes. There was further discussion on REITs and International Small Cap Equity as opportunities. E. Trustee Comments Richard Weiler is willing to continue on as Chairman Paul Henig’s last board meeting will be in August 2019. 4  F. Change in retiree status – Burt Lambert (deceased) Motion by Henig, supported by Marsh, to approve termination of survivor retiree monthly benefit in the amount of $1,407.13 for Burt Lambert due to his death on April 19, 2019. Ayes: All. Motion carried unanimously. ADJOURN: Motion by Marsh, supported by Henig, to adjourn the meeting at 2:30 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Mary Jaganjac, Treasurer / Acting Secretary 5