Police & Fire Retirement Board

REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 DECEMBER 18, 2014 FIRE DEPARTMENT CONFERENCE ROOM 41625 RYAN ROAD STERLING HEIGHTS, MI 48313 1. The regular meeting of the Police and Fire Retirement System was called to order by President Lamerato at 3:30 p.m. 2. Board Members present: Lamerato, Wellhausen, Schwarb, Maleszyk, Varney. Also present: Tim Brice representing The Brice Group/Morgan Stanley Graystone Consulting; Erick Coan representing TCW Investment Management Co.; Tim Hyland and Michael Vandenbossche representing Boyd Watterson Asset Management; Tom Michaud, Legal Counsel; and Nancy Duyck, Pension Technician. 3. APPROVAL OF CONSENT AND REGULAR AGENDAS Motion by Wellhausen, supported by Varney, to approve the consent agenda as presented. Ayes: All. The motion carried. Motion by Wellhausen, supported by Varney, to approve the regular agenda as presented. Ayes: All. The motion carried. Regular Meeting Minutes – December 18, 2014 Page Two 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of November 20, 2014. Motion by Schwarb, supported by Maleszyk, to approve the minutes as presented. Ayes: All. The motion carried. The motion carried; the minutes of the regular meeting of November 20, 2014 are hereby approved. 5. CITIZEN PARTICIPATION There was no Citizen participation. 6. REPORT FROM LEGAL COUNSEL No formal legal report was presented. Mr. Michaud commented on items of old business as they were considered. CONSENT AGENDA 7. CORRESPONDENCE a. Correspondence from Intercontinental dated November 19, 2014 re: distribution in U.S. REIF Fund. b. Correspondence from Intercontinental dated November 19, 2014 re: distribution in Intercontinental Real Estate Investment Fund III. c. Other correspondence received from: 1. Bernstein Litowitz Berger & Grossmann LLP 2. Voya d. Magazines received: 1.Institutional Investor for November 2014 2. Pensions & Investments for November 24 and December 8, 2014. 8. BILLS AND EXPENDITURES c. Checking Account Summary Beginning Balance $3,572.70 11/01/14 Additions (1) 1. 11/13 $5,000.00 Regular Meeting Minutes – December 18, 2014 Page Three CONSENT AGENDA 8. BILLS AND EXPENDITURES c. Checking Account Summary – cont. Subtractions (7) $2,131.56  1. 11/04 Check 1955 33.28 AT & T phone bill – 10/16/14 2. 11/25 Check 1958 100.00 MAPERS – 2015 dues 3. 11/26 Check 1959 50.79 Office Depot – supplies 4. 11/21 Check 1960 49.00 ND – postage reimbursement 5. 11/07 Check 5310 910.15 Contract Payment Nancy Duyck 6. 11/07 Check 5311 78.20 Contract fee – Gurin & Gurin 7. 11/21 Check 5312 910.14 Contract Payment Nancy Duyck Electronic withdrawals (5) $1,396.89 1. 11/10 461.54 IRA contribution 2. 11/12 77.33 Harland Clarke check printing fee 3. 11/12 376.83 IRS Fed. tax w/h 4. 11/17 104.34 Michigan St. tax w/h 5. 11/26 376.85 IRS Fed. tax w/h Ending Balance $ 5,044.25 11/30/14 d. Transmittal of Checks 1. There were no checks received this month. 9. FUNDS MANAGEMENT a. The current value of funds as of November 30, 2014 is detailed below: Clearing account $ 5,001,334.04 Intercontinental $ 10,545,064.05 Winslow $ 25,750,242.67 Janus $ 25,720,788.03 Eagle $ 25,672,307.22 Herndon $ 23,458,564.69 Earnest Partners $ 14,112,312.38 NFJ/Allianz $ 15,964,103.86 AIM/Invesco $ 17,191,979.91 Wamco $ 23,870,825.34 Pimco $ 22,449,062.72 Checking account $ 5,044.25 TOTAL FUNDS $ 209,741,629.16 Regular Meeting Minutes – December 18, 2014 Page Four CONSENT AGENDA 9. FUNDS MANAGEMENT - cont. b. The Board received a copy of the Summary of Employer Contributions to the Police and Fire Retirement System for the 2014 tax year as of 12/11/14. The System has received $7,518,400.00 of the 2014/15 budget of $7,953,970.00, leaving a $435,570.00 balance. c. Benefit Register Listing as of December 1, 2014 from Comerica Bank showing 317 retirees/beneficiaries with a payout for December of $1,285,473.40 and a year-to-date of $17,162,954.59. d. The current Merrill Lynch Bond index for November 2014 is 2.03%. 10. BENEFITS & PLAN ADMINISTRATION  a. Old Business 1. Abel/Noser Reports for October 2014 Abel/Noser has supplied the October 2014 report. REGULAR AGENDA 8. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments (bills) There were no bills for payment this month. b. Disbursement to retirees/members other than monthly benefit payments 1. Dennis Adler – partial DROP distribution – discussion Dennis Adler of the Fire Department terminated his DROP retirement as of May 30, 2014. He requested a partial DROP rollover distribution from his DROP account. All required paperwork is on file in the Pension Office. 2. Daniel Dye – partial DROP distribution – discussion Daniel Dye of the Fire Department terminated his DROP retirement as of July 22, 2014. He requested a partial DROP distribution from his DROP account. All required paperwork is on file in the Pension Office. Regular Meeting Minutes – December 18, 2014 Page Five REGULAR AGENDA 8. BILLS AND EXPENDITURES b. Disbursement to retirees/members other than monthly benefit payments - cont. 3. Mark Johnson – partial DROP distribution – discussion Mark Johnson of the Police Department terminated his DROP retirement as of June 29, 2011. He requested a partial DROP distribution from his DROP account. All required paperwork is on file in the Pension Office. 4. David Vinson – partial DROP distribution – discussion David Vinson of the Police Department terminated his DROP retirement as of June 18, 2008. He requested a partial DROP distribution from his DROP account. All required paperwork is on file in the Pension Office. Motion by Varney, supported by Schwarb, to approve the disbursements for the partial DROP distributions as presented. Ayes: All. The motion carried. 9. FUNDS MANAGEMENT  e. Core Fixed Income Manager presentations 1. Boyd Watterson –– 3:30 p.m. Mr. Tim Hyland and Michael Vandenbossche were in attendance to give a presentation on ultra enhanced core fixe income. 2. TCW/MetWest – 4:00 p.m. Mr. Erick Coan was in attendance to give a presentation on core plus fixed income. After discussion the following motion was made: Motion by Varney, supported by Schwarb to terminate PIMCO and move a total of $25 million from PIMCO and Western to MetWest. Ayes: All. The motion carried. Regular Meeting Minutes – December 18, 2014 Page Six REGULAR AGENDA 9. FUNDS MANAGEMENT f. Asset allocation The Board will discuss this item at the January 2015 meeting. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business There were no items for Old Business. 11. TRUSTEE COMMENTS None. 12. ADJOURNMENT Motion by Wellhausen, supported by Schwarb, to adjourn at 5:27 p.m. Ayes: All. The motion carried; the meeting is hereby adjourned. Mark Wellhausen Secretary