Police & Fire Retirement Board

SPECIAL MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 JULY 2, 2015 TREASURER’S OFFICE IN CITY HALL 40555 UTICA ROAD STERLING HEIGHTS, MI 48313 1. The special meeting of the Police and Fire Retirement System was called to order by Treasurer Varney at 3:00 p.m. Members participated via a conference call at City Hall. 2. Board Members present: Wellhausen, Varney, Schwarb, Maleszyk. Absent: Lamerato (excused). Also present: Tim Brice of Morgan Stanley Graystone Consulting (via phone). 3. APPROVAL OF AGENDA Motion by Wellhausen, supported by Schwarb, to approve the special agenda as presented. Ayes: Wellhausen, Schwarb, Maleszyk, Varney. Absent: Lamerato. The motion carried. 4. CITIZEN PARTICIPATION There was no citizen participation. Special Meeting Minutes – July 2, 2015 Page Two 5. BENEFITS & PLAN ADMINISTRATION a. Discussion of asset allocation for large cap value money managers - cont. Ms. Varney brought the Board up to date as to the discrepancy in the January meeting minutes regarding the asset allocation amounts to Eagle and Herndon. The amounts moved at that time was 2/3 to Herndon and 1/3 to Eagle. Year to date performance for Eagle was 2.8%, Herndon 0.33% and the Russell 1000 Index at -0.79%. Wellhausen brought up that Mr. Brice stated back in January that Herndon’s underperformance was due to their overweight in energy and the low price of oil. Mr. Brice stated that Eagle was the more defensive money manager of the two. Wellhausen and Schwarb inquired as to the potential upside being greater with Herndon now that oil prices have risen, of which Mr. Brice agreed. Wellhausen clarified with Mr. Brice that the Board would receive monthly updates regarding Herndon. Maleszyk inquired as to how this discrepancy happened and how to prevent it in the future. Wellhausen stated that he and the Pension Technician did not have anything in their meeting notes regarding the distribution of funds to Eagle and Herndon. He stated that he will work on taking better notes in the future. He also encouraged all Board Members to proof the minutes of each meeting to eliminate any issues that need correcting. Motion by Varney, supported by Schwarb, to rebalance the large cap value funds in the portfolio to 50% to Eagle and 50% to Herndon. Ayes: Wellhausen, Schwarb, Maleszyk, Varney. Absent: Lamerato. The motion carried. Mr. Brice stated that his office would be providing the Secretary and Pension Technician with a Letter of Direction on any funds management changes in the future. This will allow for better communication between The Brice Group and the Board. 6. ADJOURNMENT Motion by Schwarb, supported by Wellhausen, to adjourn at 3:15 p.m. Ayes: Wellhausen, Schwarb, Maleszyk, Varney. Absent: Lamerato. The motion carried, the meeting is hereby adjourned. Mark Wellhausen, Secretary