Deferred compensation management board - City of Tucson

DEFERRED COMPENSATION PLAN MANAGEMENT BOARD Notice of Regular Meeting/Agenda

DATE: TIME: PLACE:

Friday, March 3, 2017 9:00 am 5th Floor - Finance Conference Room 255 West Alameda Tucson, Arizona 85701

A) Call to Order

B) Consent Agenda 1. Approval of Board Meeting Minutes from December 2, 2016 2. Approval of Quarterly $12,500 Administrative Fee Payment to TSRS

C) Investment Performance Review, Ken Wedemeyer and Catherine Schupp 1. General Review of Plan Investments Report for the period ending December 31, 2016 a. Scorecard Metrics b. Watch List Report c. Investment Alternatives Discussion

D) Plan Health and Education & Communication - Ken Wedemeyer and Gary Helm 1. Plan Analytics 2. Education Reporting

E) Administrative Discussions 1. DC Plan Fee Models

F) For the Board's Consideration 1. BlackRock ? The Changing Equation 2. Callan and Associates ? Managing DC Investments, A Fiduciary Handbook

G) Call to Audience

H) Adjournment

Please Note: Legal Action may be taken on any agenda item

DEFERRED COMPENSATION PLAN MANAGEMENT BOARD MEETING MINTUES

DATE: TIME: PLACE:

Friday, December 2, 2016 9:00 am 5th Floor - Finance Conference Room 255 West Alameda Tucson, Arizona 85701

Members Present:

Staff Present: Guests Present: Absent, Excused:

Joe Barkenbush, Chair Dennis Woodrich, Elected Member Karen Tenace, Deputy Finance Director Rebecca Hill, Interim HR Director

Neil Galassi, Pension Administrator Dawn Davis, Management Analyst

Gary Helm, ICMA-RC Ken Wedemeyer, ICMA-RC Valerie Honea, ICMA-RC

Steve Postil, Elected Member

A) Call to Order ? Chairman Barkenbush called the meeting to order at 9:01 AM.

B) Consent Agenda 1. Approval of Board Meeting Minutes from September 2, 2016

A motion to approve the consent agenda was made by Rebecca Hill, 2nd by Dennis Woodrich, and passed by a vote of 3-0 (Karen Tenace abstained).

C) Board Member Election Results

Neil Galassi stated the election results were certified through clerk's office. Dennis Woodrich was successful in the election results and will serve a term that will end January 31, 2019.

D) Investment Performance Review 1. City of Tucson Plan Investments Report for period ending September 30, 2016 a. Scorecard Metrics b. Watch List Report

2. NAGDA 2016 Report ? DC Plan Fee Models

Ken Wedemeyer referred to page 1 of the Watch List Report and page 8 of the Scorecard of the Plan Investments Report as referenced below. PIMCO Real Return, PIMCO Low Duration, and the PIMCO Total Return have been on the watch list. The asterisk by the PIMCO Real Return reflects the discussion from the last Board meeting in regards to it meeting the metrics criteria based on the investment policy statement and it is meeting the criteria again. Mr. Wedemeyer asked the Board if

they would like to continue to keep the PIMCO Real Return on the watch list again or move it off of the watch list. The 1 year and 3 year PIMCO Low Duration and PIMCO Total Returns are still struggling. There has recently been an $18 million settlement that has been made by PIMCO for the PIMCO Total Return, so it may be a good idea to keep all of three of the PIMCOs on the watch list.

Chairman Barkenbush stated to leave PIMCO on the watch list.

Karen Tenace stated that she agrees.

Rebecca Hill stated that she agrees.

Dennis Woodrich asked Mr. Wedemeyer, about the Small Growth Oppenheimer Discovery on the Score Card on page 10 of the Plan Investments Report as referenced above as it's only meeting the 5 year.

Ken Wedemeyer stated it should be highlighted in yellow on the Watch List because it missed on the 3 year and the 1 year at the end of the quarter. It's a fund where the standard deviation is off the charts. It's either really good or really bad. It's overweight in technology compared to peers. Its peer performance in 2013 was in the 8th percentile, the 83rd in 2014, the 13th in 2015, and 79th in 2016.

Mr. Wedemeyer moved on to review the milestones and thought that the N/A would be gone by now, but it didn't happen as referenced below on page 2 of the Watch List Report and pages 11, 12, and 13 on the Score Card of the Plan Investments Report. . As a suite the only ones that are missing on the 1, 3, or 5 year on the investment policy statements are Milestone 2015 on the 1 year and Milestone 2045.

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