Retiree Health Care Board of Trustees Regular Meeting July ...

Retiree Health Care Board of Trustees Regular Meeting July 22, 2019 Page 1

AGENDA RETIREE HEALTH CARE BOARD OF TRUSTEES REGULAR MEETING MONROE COUNTY BOARD OF COMMISSIONERS CHAMBERS ROOM

MONDAY, JULY 22, 2019 ? 3:00 P.M. 125 E. SECOND STREET MONROE, MI 48161 (734) 240-7003

I. CALL TO ORDER

II. ROLL CALL

III. PLEDGE OF ALLEGIANCE

IV. APPROVAL OF AGENDA (07/22/19)

V. APPROVAL OF MINUTES (06/24/19 Regular Meeting)

VI. PUBLIC COMMENT

VII. COMMUNICATIONS

VIII. OLD BUSINESS--

IX. NEW BUSINESS-- 1. June 2019 Flash Performance 2. Quarterly Financial Reports-RHC Fund as of June 30, 2019 3. Transition Plan progress for RHC comingled investments with Road Commission a. Custodial Bank Combined Statement of County & Road Commission as of May 31 and June 30, 2019

X. PUBLIC COMMENT

XI. MEMBERS TIME

XII. INFORMATION--For Information Only 1. Next meeting October 28, 2019 2. Boyd Watterson Asset Management June 30, 2019 Statement 3. Lazard Asset Management Portfolio Review June 2019 4. Boyd Watterson GSA Quarterly Statement 5. Letter to Board of Commissioners regarding reappointment of Bob Neely and Kay Sisung

XIII. ADJOURNMENT

The County of Monroe will provide necessary auxiliary aids and services, such as signers for the learning impaired and audiotapes of printed materials being considered at the meeting to individuals with disabilities at the meeting upon one week's notice to the County of Monroe. Individuals with disabilities requiring auxiliary aids or services should contact the County of Monroe by writing or calling the following: Human Resources ? 125 East Second Street, Monroe, MI 48161 ? Voice (734) 240-7295 and TDD (734) 240-7300

Retiree Health Care Board Regular Meeting Minutes

June 24, 2019 Page 1

RETIREE HEALTH CARE BOARD OF TRUSTEES MINUTES June 24, 2019 Regular Meeting

I. The Regular Meeting of the Monroe County Retiree Health Care Board of the Trustees was held in the Board of Commissioners Chambers on Monday, June 24, 2019.

Chairman Bob Neely called the meeting to order at 3:00 p.m.

II. ROLL CALL Roll call by taken as follows: Trustees Present: Dawn Asper, Michael Bosanac, Bob Neely, David Rever and Kay Sisung Trustees Absent: None Brian Green of AndCo also attended.

A quorum being present, the Board proceeded to conduct business.

III. PLEDGE OF ALLEGIANCE Dawn Asper led the Pledge of Allegiance.

IV. APPROVAL OF AGENDA (06/24/19) Motion by Michael Bosanac, supported by Dawn Asper to approve the Agenda as presented. Oral vote taken. Motion carried.

V. APPROVAL OF MINUTES (03/25/19 Regular Meeting) Motion by Dawn Asper, supported by David Rever to approve the March 25, 2019, Regular Meeting minutes as presented, and waive the reading thereof. Oral vote taken. Motion carried.

VI. PUBLIC COMMENT ? None

VII. COMMUNICATIONS--None

VIII.

OLD BUSINESS-- 1. Discussion commenced regarding the possibility of quarterly meetings. After discussion the Trustees agreed that meetings should be held quarterly in the months of January, April, July and October going forward. Additional meetings can be held if needed.

Motion by Michael Bosanac, seconded by Dawn Asper to schedule meetings quarterly going forward, as discussed. Oral vote taken. Motion carried.

Retiree Health Care Board Regular Meeting Minutes

June 24, 2019 Page 2

IX. NEW BUSINESS 1. May 2019 Flash Performance--Brian Green reviewed the report with the Board. Account value as of May 31, 2019=$65,421,585, MTD= -3.60%, YTD=7.83%.

2. Transition Plan progress for RHC comingled investments with Road Commission-- Transition is complete.

Continued discussion regarding Community Mental Health Retiree Health Care and whether they will comingle their funds. They have all they information that they need and we are just waiting on a decision. Discussion has been commenced with the Library Board to see if they might want to comingle funds with the County Retiree Health Care Trust Board.

3. Discussion of Developed Markets Global outlook and overview of RHC investment portfolio with consideration of any need to rebalance the asset allocation--Discussed under #1.

4. Expiration of terms for Bob Neely and Kay Sisung on July 31, 2019--Both Bob Neely and Kay Sisung agreed to serve another term.

Motion by Michael Bosanac, seconded by Dawn Asper to have the Retiree Health Care Board send a letter to the Board of Commissioners to recommend the reappoint of Bob Neely and Kay Sisung to another term on the Retiree Health Care Trust Board.

Oral vote taken. Motion carried.

X. PUBLIC COMMENT--None

XI. MEMBERS TIME-- Dawn Asper--Happy with YTD number.

David Rever--Pass

Michael Bosanac--American Realty looking for capital call with $278,000. Brian has it covered. Going to move $300,000 into the trust. Educational requirements need to be met as a requirement to serve on the Board. Tom Michaud is willing to bring the test down with him once a month and we can coordinate with him to make sure everyone takes the required tests.

Kay Sisung--Pass

Bob Neely--Pass

Retiree Health Care Board Regular Meeting Minutes

June 24, 2019 Page 3

XII. INFORMATION--For information only

1. PA 202 of 2017 Report for Retiree Health Care (OPEB) 2. AndCo Consulting Privacy Notice for 2019 3. AndCo Consulting ADV Part 2A--Annual Amendment for 2019 4. Boyd Watterson Asset Management Portfolio, 1st Quarter 2019 Distribution 5. Boyd Watterson GSA Fund, LP--Month end May 31, 2019 6. Boyd Watterson GSA Fund LP--Quarterly Review, 1st Quarter, 2019 7. Boyd Watterson GSA Fund, LP--Consolidated Financial Report, Year-end 2018 8. Lazard Asset Management Portfolio Review, May 2019

XIII.

ADJOURNMENT With no additional business to come before the Retiree Health Care Board of Trustees, Chairman Neely adjourned the meeting at 4:01 p.m.

Investment Performance Review Period Ending June 30, 2019

Monroe County Retiree Health Care Trust Board

Asset Allocation By Manager as of March 31, 2019 : $60,104,205

Asset Allocation Summary Total Fund

As of June 30, 2019

Asset Allocation By Manager as of June 30, 2019 : $69,049,168

Allocation

? Vanguard Institutional Index (VINIX) ? Boyd Watterson Asset Management ? Vanguard FTSE Developed Markets (VEA) ? Vanguard Extended Market Index (VIEIX) ? Titanium GSA Fund ? Lazard Emerging Market ? Clarkston Partners (CISMX) ? Ancora SMID (AATSX) ? Legg Mason (Brandywine) Global Fixed (GOBSX) ? Cash Account ? American Realty Strategic Value ? Vanguard Developed Markets Idx Adm (VTMGX)

Market Value 14,511,197 12,023,775 7,160,218 6,668,600 5,554,356 4,214,307 3,274,361 3,221,934 2,738,625 655,006 81,825 -

Page 1

Allocation 24.1 20.0 11.9 11.1 9.2 7.0 5.4 5.4 4.6 1.1 0.1 0.0

Allocation

? Vanguard Institutional Index (VINIX) ? Boyd Watterson Asset Management ? Vanguard FTSE Developed Markets (VEA) ? Vanguard Extended Market Index (VIEIX) ? Titanium GSA Fund ? Lazard Emerging Market ? Ancora SMID (AATSX) ? Clarkston Partners (CISMX) ? Legg Mason (Brandywine) Global Fixed (GOBSX) ? Vanguard Developed Markets Idx Adm (VTMGX) ? American Realty Strategic Value ? Cash Account

Market Value 15,820,070 14,344,313 8,293,283 7,694,651 5,634,631 4,909,242 3,854,259 3,827,837 3,486,905 659,959 519,825 4,193

Allocation 22.9 20.8 12.0 11.1 8.2 7.1 5.6 5.5 5.0 1.0 0.8 0.0

NONE

Executive Summary

Total Domestic Equity $31,196,817.6 (45.2%)

Asset Allocation Compliance Monroe County Retiree Health Care Trust Board

As of June 30, 2019

Total International Equity $13,862,483.6 (20.1%)

Total Domestic Fixed Income $14,344,313.0 (20.8%)

Total Global Fixed Income $3,486,905.0 (5.0%)

Total Real Estate $6,154,456.0 (8.9%)

Total Alternatives $0.0 (0.0%)

Total Cash $4,192.7 (0.0%)

0.0%

8.0%

16.0% Policy

24.0% Target

32.0% In Policy

40.0%

48.0%

Outside Policy

56.0%

Asset Allocation Compliance

Total Fund Total Domestic Equity Total International Equity Total Domestic Fixed Income Total Global Fixed Income Total Real Estate Total Alternatives Total Cash

Asset Allocation

$ 69,049,168 31,196,818 13,862,484 14,344,313

3,486,905 6,154,456

4,193

Current Allocation (%)

100.0 45.2 20.1 20.8 5.0 8.9 0.0 0.0

Minimum Allocation (%)

N/A 25.0 13.0 14.0

0.0 0.0 0.0 0.0

Target Allocation (%)

100.0 40.0 20.0 21.0 5.0 9.0 5.0 0.0

Maximum Allocation (%)

N/A 51.0 30.0 28.0

7.0 10.0

6.0 5.0

Min. Rebal. ($000)

-13,934,526

-4,886,092 -4,677,430 -3,486,905 -6,154,456

-4,193

Target Rebal. ($000)

-3,577,150

-52,650 156,012 -34,447

59,969 3,452,458

-4,193

64.0%

Max. Rebal. ($000) -

4,018,258 6,852,267 4,989,454 1,346,537

750,461 4,142,950 3,448,266

Page 2

Asset Allocation & Performance

Total Fund Total Fund Policy Hybrid

Total Fund (Net of Fees)

Allocation

Market Value %

$

69,049,168

100.0

69,049,168

100.0

Total Equity

45,059,301

65.3

Total Domestic Equity

Vanguard Institutional Index (VINIX) S&P 500 Index IM U.S. Large Cap Core Equity (MF) Median

Vanguard Extended Market Index (VIEIX) S&P Completion Index IM U.S. SMID Cap Core Equity (MF) Median

Clarkston Partners (CISMX) Russell 2500 Index IM U.S. SMID Cap Value Equity (MF) Median

Ancora SMID (AATSX) Russell 2500 Index IM U.S. SMID Cap Equity (MF) Median

31,196,818

45.2

15,820,070

22.9

7,694,651

11.1

3,827,837

5.5

3,854,259

5.6

Total International Equity

13,862,484

20.1

Developed Markets International Equity

8,953,242

13.0

Vanguard FTSE Developed Markets (VEA) FTSE Developed All Cap ex-U.S. Index IM International Equity (MF) Median

8,293,283

12.0

Vanguard Developed Markets Idx Adm (VTMGX)

659,959

1.0

Vanguard Spliced Developed ex U.S. Index (Net)

IM International Multi-Cap Core Equity (MF) Median

MTH 4.61 4.73 4.60

6.26

6.47 7.05 7.05 6.70 6.82 6.81 7.05 4.15 7.09 6.81 5.59 7.09 7.09

5.81

5.85 5.85 5.92 5.95 5.93 5.89 5.82

QTR 3.39 3.00 3.37

3.41

3.26 4.30 4.30 4.17 3.04 3.02 2.62 3.12 2.96 1.57 -0.33 2.96 2.91

3.68

3.18 3.17 3.49 2.58

3.34 2.93

Monroe County Retiree Health Care Trust Board Monthly Asset Allocation and Performance Flash Report

As of June 30, 2019

YTD 12.83 12.52

12.77

Performance(%)

1 YR

3 YR

6.78

8.61

5.66

8.37

6.65

8.23

5 YR 5.54 5.69

4.99

Inception

5.13 5.96

Inception Date

01/01/1998

4.46 01/01/1998

16.58

4.36

-

-

5.50 10/01/2017

18.13

18.54 18.54 17.88

19.52 19.49 16.85

14.18 19.25 14.73

16.02 19.25 17.97

5.18

10.42

9.26

1.88 -2.86

1.77 -6.96

1.77 -0.89

-

14.19 13.11

13.05 10.10

12.34

7.92

12.34 11.35

-

10.71

9.33

7.69 5.97

7.66 4.11

7.66 6.92

7.75 10/01/2017

7.83 12/01/2018 7.84 7.30

6.74 12/01/2018 6.61 3.16

5.91 12/01/2018 6.18 0.17

3.90 12/01/2018 6.18 4.29

12.85

1.96

-

-

-0.28 10/01/2017

14.15

14.14 14.09 13.47

13.84 13.34

0.44

0.12 0.14 -0.27

-0.16 -0.54

-

9.34 8.44

9.02 8.11

-

-0.99 10/01/2017

-

- 11/01/2017

2.63

0.36

2.22

-1.14

-

0.36 05/01/2019

2.55

0.63

1.92

0.30

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