Chairman Thomas Kelley called the meeting to order at 8:45 a.m. in the conference room of the Plymouth Retirement Office. Present Board members were Thomas Kelley, Lynne Barrett, Richard Manfredi and Shawn Duhamel. Board’s Selectmen-appointed position is currently vacant due to the passing of Mr. John Murphy, Jr. Also present were Debra Sullivan, Susan Turner and Attorney Michael Sacco. Anthony Tranghese, of Fiduciary Investment Advisors was also in attendance.
Section I: Regular Business – Regular Meeting
Minutes:
Minutes dated January 22, 2010 – Regular Board Meeting
Minutes dated January 22, 2010 – Executive Session
Motion to approve both sets of minutes made by Mr. Manfredi; seconded by Mr. Duhamel. Unanimously voted.
Warrants:
Warrant dated December 31, 2009: $2,199,589.65 (Final)
Warrant dated January 31, 2010: $1,108,398.11(Partial)
Warrant dated February 28, 2010 $1,316,182.03 (Partial)
Warrant dated March 1, 2010 $3,545.76 (Partial)
Motion to approve all warrants was made by Mr. Manfredi; seconded by Mr. Duhamel. Unanimously voted.
Public Comment: None
Section II: Solicitation & Correspondence:
Investment Performance for period ending December 31, 2010:
Tony Tranghese from FIA went over the investment performance for the fourth quarter of 2009 and also for the month of January, 2010.
As of December 31, 2009, fund asset classes were as follows: Cash .55% Fixed Income 22.74%, Domestic Large Cap Equity 42.18%, International Equity 20.89%, Alternative-PRIT 5.24%, Real Estate 6.68% and Private Equity 1.72%.
As of December 31, 2009, fund asset allocations were as follows: Wellington CIF II Core Bond 16.35%, MacKay Shields 5.95%, Wellington PPIF .39%, SSgA Collateral Assets .05%, Boston Advisors 7.30%, SSGA Flagship S&P500 Index 3.36%, SSGA Flagship S&P500 Non-Lending 1.61%, Wellington CIF Research Equity 8.01%, Eaton Vance Large Cap Value 5.30%, Westfield Large Cap Growth 5.41%, Boston Trust 11.19%, Templeton Foreign Equity Series 20.89%, PRIT Hedge Funds 5.24%, PRIT Real Estate Fund 5.26%, Intercontinental Real Estate 1.42%, PRIT Vintage Year 2006, 1.06%, PRIT Vintage Year 2007 .48%, PRIT Vintage Year 2008 .18% and PRIT Vintage Year 2009 .01%.
Manager Evaluations:
Wellington Core Bond Fund: (Domestic Fixed Income)
Valued at $16.5 million and represents 16.35% of total assets. The portfolio’s return of
1.6% out performed the Barclays Aggregate return of .2%, and out-performed the 1-year return of 17.9% vs. 5.9%.
Motion made to remove Wellington from watch status made by Mr.Duhamel; seconded by Mr. Manfredi. Unanimously approved.
MacKay Shields High Yield: (Domestic Fixed Income)
Valued at $6 million and represents 5.95% of assets. The portfolio’s return of 4.8 % under-performed the Credit Suisse High Yield return of 6.2%, and under-performed the 1- year return with 42.5% vs. 54.2%.
SSgA Collateral Assets: (Domestic Fixed Income)
Valued at $46 thousand and represents .05% of assets. The portfolio’s return of 1% out-performed the 90 Day U.S. Treasury Bill return of 0%, and out-performed the 1- year return with 6.3% vs. .2%.
Wellington Management Legacy PPIF: (Domestic Fixed Income)
Valued at $396 thousand and represents .39% of assets. No other information available, at this time.
Boston Advisors: (Domestic Equity)
Valued at $7.4 million and represents 7.3% of assets. The portfolio’s return of 6.1% out-performed the S&P 500 Index’s return of 6%. The 1-year return under-performed with 23% vs. 26.5%.
SSGA Flagship S&P500 Index: (Domestic Equity)
Valued at $3.4 million and represents 3.36% of assets. The portfolio’s return of 6.1% out-performed the S&P 500 Index’s return of 6%. The 1-year return slightly out-performed with 26.6% vs. 26.5%.
Wellington CIF Research Equity: (Domestic Equity)
This fund was valued at $8 million and represents 8.01% of assets. The portfolio’s return of
6% equaled the S&P 500 Index return of 6% and out-performed the1-year return with 33.6% vs. 26.5%.
SSGA Flagship S&P500 Non-Lending: (Domestic Equity)
Valued at $1.6 million and represents 1.61% of assets. The portfolio’s return of 6.1% out-performed the S&P 500 Index’s return of 6%. The 1-year return slightly out-performed with 26.5% vs. 25.9%.
Eaton Vance Large Cap Value: (Domestic Equity)
This fund was valued at $5.3 million and represents 5.30% of assets. The portfolio’s return of
5.7% out-performed the Russell 1000 Value Index return of 4.2% but under-performed the1-year return with 16.4% vs. 19.7%.
Westfield Large Cap Growth Fund: (Domestic Equity)
This fund was valued at $5.5 million and represents 5.41% of assets. The portfolio’s return of
7.9% was equal to Russell 1000 Growth Index return of 7.9% but under-performed the1-year return with 35.8% vs. 37.2%.
Boston Trust Small Cap Core Fund: (Domestic Equity)
This fund was valued at $11.3 million and represents 11.19% of assets. The portfolio’s return of
6.6% out-performed the Dow Jones U.S. Small-Cap Market Index return of 4.4% but under-performed the1-year return with 30.6% vs. 41.9%.
Templeton Foreign Equity Series SAF Fund: (International Equity)
This fund was valued at $21.1 million and represents 20.89% of assets. The portfolio’s return of
1.4% under-performed the MSCI EAFE (net) of 2.2% but out-performed the1-year return with 33.6% vs. 31.8%.
PRIT Hedge Funds: (Alternative)
Valued at $5.3 million and represents 5.24% of assets. This fund had a return of 2.3% and out-performed the 90 Day T-Bill + 5% 1.3% and out-performed the 1-year return with 12.3% vs. -5.2%.
Intercontinental Real Estate: (Real Estate)
Valued at $1.4 million and represents 1.42% of assets. This fund had a return of –8.6% and under-performed the NCREIF Property Index of -2.1% and out-performed the 1-year return with -12.4% vs. -16.9%.
PRIT Real Estate Fund: (Real Estate)
Valued at $5.3 million and represents 5.26% of assets. This fund had a return of –1.7% but out-performed the PRIM Custom Total RE Benchmark of -2.1% and out-performed the 1-year return with -7.2% vs. -12.4%.
PRIT Vintage 2006: (Private Equity)
Valued at $1million and represents 1.06% of assets. This fund had a return of 4% and under-performed the S&P 500 + 5% of 7.3% and under-performed the 1-year return with -12.1% vs. 32.8%.
PRIT Vintage 2007: (Private Equity)
Valued at $487 thousand and represents 0.48% of assets. This fund had a return of 6.1% and under-performed the S&P 500 + 5% of 7.3% and under-performed the 1-year return with -6.6% vs. 32.8%.
PRIT Vintage 2008: (Private Equity)
Valued at $178 thousand and represents .18% of assets. This fund had a return of -.8% and under-performed the S&P 500 + 5% of 7.3% and under-performed the 1-year return with -23.3% vs. 32.8%.
PRIT Vintage 2009: (Private Equity)
Valued at $10 thousand and represents .01% of assets. This fund’s performance was not available at this time.
Discussion:
Mr. Tranghese said there have been a lot of inquiries regarding the Global Asset/Management RFP but they have not received any proposals yet. Depending on how many respond, they will narrow down the selection to around seven or eight and then pick three or four to be interviewed. The deadline for proposals is March 10, 2010.
PERAC Memo’s:
The Board received and reviewed the following PERAC Memos:
PERAC Memo #8/2010: Buyback and Make-up Repayment Worksheets
using Buyback Interest
PERAC Memo #9/2010: 2010 Interest Rate set at .3%
PERAC Memo #10/2010: The “Under $5000.00 Rule”
PERAC Memo #11/2010: IRS Check sheet
PERAC Memo#12/2010: Data Verification for PERAC’s 2009 Annual Report
Proposed new ERI Legislation:
Shawn Duhamel said this is sitting in the House Ways and Means Committee right now. This is part of the Municipal Relief Act. This would only allow up to three years of added service and you cannot cash out sick or vacation time. He didn’t see that many employees would take advantage of this because of the money they would lose.
Investment Correspondence:
The Board received & reviewed the following investment correspondence:
Wellington Management Legacy Securities PPIF (Offshore), Ltd. – December 2009 - Capital Account Statement
Boston Advisors has sent the Fourth Qtr. 2009 Investment Review
Scott and Scott Attorney’s at Law have sent the 4th Qtr. 2009 Review
Fiduciary Investment Advisors, LLC, has sent the Town of Plymouth’s Executive Summary for Fourth Qtr. 2009.
Section III: Membership:
New Hires:
Town:
9% Falconer, Paul, Group 1, Assessor Analyst
Perm. Full-time, $1,012.88 weekly
Start Date: 02/01/2010
9% Castro, Hector, Group 1, DPW Director
Perm. Full-time, $2,019.22 weekly
Start Date: 02/01/2010
Retirements:
School:
Ferdinand, Manuel, Group 1, Custodian
16 years, 9 months service
Superannuation retirement, opt b
Retirement date: January 28, 2010
Motion made to approve all new hires and retirement made by Mr. Manfredi; seconded by Mr. Duhamel. Unanimously voted.
Refunds:
School:
Gabbett, Michael L., Group 1, Custodian
Passed away on 5/18/2009
20 years, service (4/30/89 – 5/18/09)
Beneficiary Debra Evirs, requesting refund of accumulated deductions
Total taxable distribution, including FWT: $42,690.06
Total non-taxable distribution: $12.68
Motion made to approve refund by Mr. Manfred; seconded by Ms. Barrett. Unanimously voted.
Election:
Debra Sullivan referred to the election schedule that was attached to the Board’s agenda and explained that in the past, Board member John Murphy was the Election Officer. The Board decided that all ballots to be counted must be received through the mail and post-marked no later than June 23, 2010. No hand-delivered ballots will be accepted.
Motion made to appoint Debra Sullivan as Election Officer made by Mr. Manfredi; seconded by Mr. Duhamel. Unanimously voted.
Executive Session:
Pursuant to M.G.L. Chapter 39, Section 23B, the Board will enter into Executive Session to discuss two pending Accidental Disability applications and also will discuss possible litigation strategy.
Roll call vote to enter executive session at 9:45 a.m.:
Mr. Kelley yes
Mr. Manfredi yes
Ms. Barrett yes
Mr. Duhamel yes
Present in Executive Session were Chairman Thomas Kelley, Lynne Barrett, Richard Manfredi and Shawn Duhamel. Also present was Attorney Michael Sacco, Debra Sullivan, and Susan Turner.
Motion made to adjourn Executive Session and return to the regular open meeting at 10:20 a.m. by roll-call vote:
Mr. Kelley yes
Mr. Manfredi yes
Ms. Barrett yes
Mr. Duhamel yes
Section III: Membership:
Retirements:
School:
Boccaci, Gary, Group 1, Head Custodian
29 years, 1 month service (1/01/81 – 2/08/10)
Superannuation retirement, opt b
Retirement date: February 8, 2010
Motion made to approve this retirement made by Mr. Manfredi; seconded by Mr. Duhamel. Unanimously voted.
Section IV: General Business:
Clothing Allowance:
Attorney Sacco stated that due to the recent court case regarding O’Brien, clothing allowance is not to be considered regular compensation, which is subject to retirement deductions. The Board will discuss this further at a later date.
Next Meeting: Friday, March 26, 2010 at 8:30 a.m.
Adjournment:
Motion to adjourn meeting at 10:35 a.m. made by Mr. Manfredi; seconded by Ms. Barrett. Unanimously voted.
Respectfully submitted,
Susan Turner
Secretary
The Town of Plymouth Retirement Board unanimously voted to approve these minutes at their meeting on Friday, March 26, 2010. Original, signed minutes are available at the Retirement Office, 10 Cordage Park Circle, Suite 240, Plymouth, MA.
