MUNICIPAL PENSION BOARD MINUTES
TUESDAY MAY 9, 2017
The monthly meeting of the Municipal Pension Board was called to order at 5:04 p.m. by chair, John Beardsley.
Present: John Beardsley, William Kroll, Michael Lupkas, Marci Nogueira, John DiRoma, Michael Cardona, Justino Sampaio, George Delmastro, Joseph Carabetta, Maryann Santos and Patrick Ladd.
Also present: Patrick Sheehan and Mark Hammond from Stifel, Nicolaus & Co., Inc.
April 11, 2017 Minutes – A motion was made by John DiRoma and Patrick Ladd (second) to accept the minutes. Passed unanimously
FINANCIAL REPORTS – Michael Lupkas presented the financial reports for April 2017. There was a motion to accept the financial reports by John Beardsley and George Delmastro (second). Passed unanimously. Patrick Ladd inquired about a newspaper article regarding funding OPEBs, Mike Lupkas indicated that the latest version of the City Manager’s budget included a reduction to the funding of OPEBS to $500,000 for FY2018. There were also City Manager comments about pension fund investment returns at or below averages. Mike Lupkas responded that this will be taken into account during the ongoing RFP process.
RFP Status – Mike Lupkas, Marci Nogueira, Guy Scaife (City Manager) and Wilma Petro (Purchasing Officer) discussed the scope of work with Hooker & Holcombe regarding the request for the proposal for the investment advisors to the fund(s). Review RFP process, draft dates for the RFP process, reports reflect the changes. Will try to have the finalist interviews by 7/1/17, but date is still to be determined
MARCI NOGUEIRA – Presented the following applications for retirement:
Janis Lischeid Normal Retirement, 100% Joint & Survivor. Effective date 5/2/2017. Monthly pension benefit, $1330.77. There was a motion to accept Janis Lischeid’s pension application by Michael Cardona and Patrick Ladd (second). Passed unanimously
Officer Anthony Woznicki Normal Retirement, 50% Joint & Survivor. Effective date 5/5/2017.
Monthly pension benefit, $5473.10. There was a motion to accept Officer Woznicki’s pension application by George Delmastro and Joseph Carabetta (second). Passed unanimously
Meriden Retirement Fund
Board would like to know, prior to today’s plan what do they get (Police & Fire employee and spouses).
Stifel’s summary for the Quarterly Report will be scheduled for June Meeting.
Adjournment at 6:00 p.m. Motion by Michael Cardona and Justino Sampaio (second). Passed unanimously.
Stifel reported on May 9, 2017:
The Meriden retirement funds closed April with a slight gain, lifting the 2017 fiscal year to +8.3% and the Healthcare Trust to +10.1%. Growth disciplines outpaced Value during April, with the best performances posted by Legg Mason and Kayne Anderson. International portfolios advanced, led by technically-driven Dorsey-Wright, gaining 16.5% since January. Within Meriden’s alternatives portfolios, the hedge fund Alkeon Growth Partners gained 3.2% in April, up 13.3% for the year, while the Central Park Group’s Activist Fund continues to struggle – posting flat returns during the first quarter. Distributions from the EJF debt fund, Activist, and the Steben futures portfolio are earmarked for the global long/short discipline of Alkeon. Fixed income is holding steady in recent months, but bond values
remain lower thus far this fiscal year. Equity is off to a soft start in May, although international portfolios are advancing smartly.
Private equity investments have accelerated over the past month, with new capital called for Greenspring Associates, Oak Hill Capital, and the Warburg-Pincus Energy fund. The late-stage venture investments by Greenspring now include a pre-IPO high-growth consignment platform operating profitably in 27 metro markets, a wireless spectrum company, and a medical home-services company serving 40 states on behalf of five of the largest Medicare Advantage plans.~ The Oak Hill partnership, which engineered the highly successful Dave & Buster’s IPO two years ago, recently committed $300 million to another national restaurant chain, and added $200 million to its holdings in a fiber-optic firm by acquiring expanded infrastructure capacity across a broad footprint from New York to Maine.
Approaching the end of the fiscal year, the Meriden pension funds have already drawn distributions for benefit payments of more than $10.6 million, or 4.4% of the combined $241 million value of the pension portfolios.~ The Board may wish to consider adjusting its 2017 Investment Policy Statement to reflect the spending rate projections, as additional transfer requests are anticipated for May and June.~
On May 9, 2017, the Board took the following action:
Resolved, that the Meriden Retirement Board authorizes the following transfers and investments within its Board-directed accounts: In the City Employees Fund M: adding $1,100,000 to the current position in the Alkeon Fund, and transferring $1,400,000 from Fund M to the Board-managed Fund P.~
In the Police/Fire Fund H: adding $900,000 to the current Alkeon Fund, and transferring $1,500,000 from Police/Fire Fund H to the Board’s Police/Fire Fund P account.~The Board authorizes Finance Director Michael Lupkas to review and confirm these transfers.