Municipal Employees' Annuity and Benefit Fund of Chicago met June 21.
Here
The Monthly Meeting of the Retirement Board was called to order by the President, Jeffrey J. Johnson, at 8:03 a.m.
The following were present:
Also Present:
Jeffrey J.
Erin
Kurt A. Summers, Jr. Treasurer - arrived 9:19 a.m.
Thomas J. McMahon Recording Secretary
Verna R.
James E. Mohler Executive Director
Mary Patricia Burns Attorney at Law
Sarah Boeckman Burke, Burns & Pinelli
Steve Yoon Investment Manager
Sandra Shelby Comptroller
Kimberly Carroll Benefits Manager
Stacey Ruffolo Executive Manager
Jabari Porter CIO (Proxy for Treasurer)
Terence P.
Brian Wrubel Marquette Associates
Jamie Wesner Marquette Associates
Neil Capps Marquette Associates
Donna Hansen Supervisor of Support Services
Arman Calloway Fund Intern
Rob Kozlowski Pensions & Investments
Isaac H. Green Piedmont Investment Advisors
Charles L.
Noel McElreath Piedmont Investment Advisors
Gilbert A. Garcia Garcia,
Stephanie J. Roberts Garcia,
Ruby Dang Garcia,
Eugene Natali, Jr. CS McKee
Brian S. Allen CS McKee
Mark Anderson National Investment Services
Ray Caprio National Investment Services
Christopher Vincent William Blair
Thomas Brennan William Blair
James Dominguez William Blair
Kelly Flannery Deputy Comptroller (Proxy for the VP)
Secretary's Report
Trustee McMahon motioned that the Minutes of Meeting No. 2018-05 be approved as submitted. Seconded Trustee Thompson. Carried: Ayes- Trustee Johnson, Trustee McMahon Trustee Thompson and Mr. Porter. Nays-None.
Trustee McMahon motioned that the Executive Session Minutes of Meeting(s) No. 2016-05 (1) be approved as submitted. Seconded Trustee Thompson. Carried: Ayes- Trustee Johnson, Trustee McMahon Trustee Thompson and Mr. Porter. Nays-None.
Public Comment
There were no requests to address the Board.
The following topics were taken out of order.
Legislation
Legislative Update
Mr. Mohler updated the Board on issues discussed in the update from the Fund’s legislative liaison and reported that the legislative liaison will be at the July Board meeting to update the Board on the legislative session.
Investments
Market Environment
Mr. Wesner reported on the current state of the market and the Fund’s overall performance.
Monthly Performance Report
Mr.
MEABF Staff Investment Report
Mr. Yoon presented the Fund’s investment report.
Based on information presented during the staff investment report, and based on staff’s and the investment consultant’s recommendation, Trustee McMahon made a motion to place Walter Scott Investment Advisors on
Liquidity Needs
Based on information presented in the staff investment report and based on staff’s and the investment consultant’s recommendation, Trustee McMahon made a motion to liquidate up to $50 million in order to assist with July benefit payments. Seconded by Trustee Thompson.
Carried: Ayes -Trustee Johnson, Trustee McMahon, Trustee Thompson and Mr. Porter. Nays – None.
Investment Policy Restrictions Review
Mr. Mohler reviewed the restrictions on investments currently in force within the Fund’s Investment Policy. Based on his review and the recommendations of Fund staff and the concurrence of Fund counsel, Trustee Thompson made a motion to extend the expiration date of the restrictions until January 31, 2019. Seconded by Trustee Thompson.
Carried: Ayes -Trustee Johnson, Trustee McMahon, Trustee Thompson and Mr. Porter. Nays – None.
Mr. Mohler reported that the staff will provide recommendations about the restrictions on investments prior to year’s end.
Trustee Keane arrived at 8:48 a.m.
Trustee Summers arrived at 9:19 a.m.
Core Fixed Income RFP Candidate Interviews
The Board interviewed five firms from the respondents to the Fund’s RFP for Core Fixed Income Managers. The following firms and representatives presented:
Piedmont Investment Advisors
Isaac H. Green, President & Chief Executive Officer
Charles L. Curry, Executive Vice President
Noel McElreath, Senior Vice President
Garcia Hamilton & Associates
Gilbert A. Garcia, CFA, Managing Partner
Stephanie J. Roberts, Marketing and Client Services
Ruby Dang, Director of Marketing and Client Services
CS McKee, L.P.
Eugene Natali, Jr., CFA, Marketing Manager
Brian S. Allen, CFA, Portfolio Manager, SVP
National Investment Services
Mark Anderson, CFA, Chief Strategy Officer
Ray Caprio, Director, Institutional Sales
William Blair
Christopher Vincent, CFA, partner
Thomas Brennan, CFA, Portfolio Specialist
James Dominguez, Client Relationship Manager
Following the presentations, Trustee Summers made a motion to enter closed session at 11:10 a.m. in accordance with 120/2(c)(1) and (7) in order to discuss matters of investment contracts and issues of personnel. Seconded by Trustee Thompson.
Roll call:
Trustee Johnson Aye
Trustee Keane Aye
Trustee McMahon Aye
Trustee Summers Aye
Trustee Thompson Aye
Motion carried.
The Board moved into open session at 12:37 p.m. on a motion by Trustee McMahon. Seconded by Trustee Thompson. Carrie by a voice vote.
In open session, Trustee Summers made a motion to hire National Investment Services pending successful contract negotiations and review of all Illinois State Statute requirements by Fund staff and Board counsel. Seconded by Trustee McMahon
Carried: Ayes – Trustee Johnson, Trustee Keane, Trustee McMahon, Trustee Summers and Trustee
Thompson. Nays – None.
Trustee Summers made a motion to invest $50 million with Garcia Hamilton & Associates pending
successful contract negotiations and review of all Illinois State Statute requirements by Fund staff and
Board counsel. Seconded by Trustee McMahon.
Carried: Ayes – Trustee Johnson, Trustee Keane, Trustee McMahon, Trustee Summers and Trustee
Thompson. Nays – None.
Other
2017 Audit Report
Gary Pater and Brian Mullins of Bansley and Kiener, the Fund’s Auditors, presented the 2017 Audit Report. All staff were asked to leave the room and the Trustees inquired of the auditors whether the auditors had any concerns to bring to the Trustee’s attention. Hearing none and with the concurrence of Fund Counsel, Trustee Thompson made a motion to accept and file the 2017 Audit report. Seconded by Trustee McMahon.
Carried: Ayes – Trustee Johnson, Trustee McMahon and Trustee Thompson. Nays – none.
The 2017 Audit Report is available for review on the Fund’s website at www.meabf.org.
Section 1-135 Report Update
Ms. Ruffolo reported on the status of cases in which false statements or documentation had been submitted to the Fund resulting in overpayments to deceased annuitant members. Ms. Ruffolo explained which matters had been reported to the Board and which matters had not based on staff’s assessment that no reasonable suspicion existed as to fraud.
Election Update
Ms. Ruffolo update the Board on the answers to questions they had regarding the security of the online voting site for the 2018 Trustee Election.
FOIA Update
Ms. Ruffolo updated the Board on requests made under the Illinois Freedom of Information Act.
Old Business
No old business was discussed.
Legal Update
There were no legal matters to discuss.
Adjournment
There being no further business to come before the Board, Trustee Summers made a motion to adjourn the meeting at 12:40 p.m. Seconded Trustee McMahon. Carried: Ayes - Trustee Johnson, Trustee
https://www.meabf.org/assets/pdfs/meetings/minutes/2018-06_Minutes_Web.pdf
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