APPROVED BY BOARD at the July 22, 2009 Meeting
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFIT BOARD
MINUTES
REGULAR MEETING
WEDNESDAY, JUNE 24, 2009
The meeting was called to order by Joseph Carlson, Chairman at 5:50 P.M. in the Town Council Majority Room, East Hartford Town Hall. In addition to Mr. Carlson there were
PRESENT: Kurt Christensen, Member
Scott Thompson, Member
Frank Vignati, Member
ABSENT: Barbara-Ann Rossi, Member
ALSO PRESENT: Michael Walsh, Finance Director
Wayne Connors, 3D Asset Management
John O’Connor, 3D Asset Management
Christopher Kachmar, Fiduciary Investment Advisors, LLC
PUBLIC PARTICIPATION: None
ACCEPTANCE OF MINUTES
a. Acceptance of Minutes of Regular Meeting of May 27, 2009:
Motion by Mr. Christensen, seconded by Mr. Thompson to approve the Minutes of the Regular Meeting of May 27, 2009.
The Motion was voted; Motion was approved, with Mr. Vignati abstaining.
3. COMMUNICATIONS:
Mr. Walsh advised the Board that the monies for the OPEB Trust had been forwarded to the advisors to establish the trust.
4. OLD BUSINESS - None
5. NEW BUSINESS:
a. Retirements, Final Calculations, Withdrawal of Contributions:
1. Retirements - none
2. Withdrawal of Contributions:
Stephanie DuBose, BOE, resigned 4/17/09
Motion by Mr. Vignati, seconded by Mr. Christensen to approve as presented the Withdrawal of Contributions for Stephanie DuBose.
Motion was voted; Motion was unanimously approved.
6. REPORTS:
a. Pension:
1. Summary of Portfolio Asset – May, 2009
2. Summary of Expenses – May, 2009
This was accepted as information for the Board members.
3. 3D Asset Management – Town of East Hartford Employee Retirement Plan Equity Component Monthly Review as of May 31, 2009.
Mr. O’Connell distributed the Equity Component Monthly Review May 31, 2009. The starting balance was $80,994,507.00 and after transfer of Pension Contributions, Capital Appreciation, Income, the ending Portfolio balance was $87,814,910. The Quarterly Return was 26.54 %; Year to Date Return was 9.56% and since 11/3/08 a cumulative returns of 10.18%. Discussion followed on the Asset Class and Asset Allocation. Mr. O’Connell reported that April and May were very good months, that June so far has been rocky and we would probably break even.
4. Fiduciary Investment Advisors, LLC – June 2009 Fixed Income Allocation & Performance Estimate Report
Mr. Kachmar reviewed the Fixed Income Allocation and Performance Report for June 2009. The Total Fixed Income is $42,156,109. Mr. Kachmar discussed the PIMCO, Trust Co., of the West, and Loomis Sayles managers and advised they were performing strong.
b. OPEB Trust:
1. Summary of Portfolio Assets – May 2009
2. Summary of Expenses – May 2009
Reports will be available with the next meeting since this is a new account.
3. 3D Asset Management – June 2009 OPEB Trust Equity Investment Asset Allocation Report.
Mr. Connors advised the Board that the investment approach for the 60% of the OPEB monies were managed by four firms; iShares, Vanguard, State Street Global Advisors and WisdomTree. Diversification and cost control are achieved by combing 15 different equity asset classes together in one simplified cost-effective portfolio using exchange-traded funds (ETF’s). The cost will be less with ETF’s since they do not need to hold cash for investor redemptions, therefore you are fully invested. Brief discussion followed.
4. FIA – Fixed Income OPEB Trust – Cash Flow Worksheet as of 6/22/09
Mr. Kachmar advised the Board that the 40% Initial allocation he recommends is PIMCO (60%) and Vanguard as the managers. Discussion followed on the need for the Board to approve this allocation. The following motion was made:
Motion by Mr. Vignati, seconded by Mr. Thompson to approve the FIA recommendation for the initial allocation of the $952,000.
Motion was voted; Motion was unanimously approved.
Add-On:
#7. Approval of Disbursements:
b. The Segal Company, Inv. #116753 $4,375.00
c. The Segal Company, Inv. #116993 $1,170.00
Motion by Mr. Christensen, seconded by Mr. Thompson to add to the agenda the #7b. & #7c. as presented.
Motion was voted; Motion was unanimously approved.
7. APPROVAL OF DISBURSEMENTS:
a. Clerk for Pension & Ret. Benefit Board/May 27, 2009 meeting $ 100.00
b. The Segal Company, Inv. #116753 March, April, May 2009 calculations
@ $175 4,375.00
c. The Segal Company, Inv. #116993 QDRO (3 employees) 1,170.00
After a brief discussion on corrections to item b. the following motion was made:
Motion by Mr. Vignati, seconded by Mr. Christensen to approve as presented for payment item # 7a, b & c..
The motion was voted; Motion was unanimously approved.
8. ADJOURNMENT:
There being no further business,
Motion by Mr. Vignati, seconded by Mr. Thompson to adjourn the regular meeting at 6:38 P.M.
The motion was voted; Motion was unanimously approved.
Respectfully submitted,
Janet Penney, Clerk
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