HomeMy WebLinkAboutMinutes - 2017.03.01 - 30424OAKLAND COUNTY EMPLOYEES'
RETIREMENT AND DEFERRED COMPENSATION BOARD
INVESTMENT SUB-COMMITTEE MINUTES
A meeting of the Oakland County Employees' Retirement and Deferred Compensation Board Investment Sub-Committee was held January 19, 2017 at 9:30 a.m. in the Royal Oak Conference Room, Executive Office Building (EOB).
Members Present: James H. VanLeuven, Jr. Joseph Rozell
Andy Meisner Laurie Van Pelt
Others Present: Curtis Childs, Trustee Rhonda Van Tiflin, Human Resources Paige Ritchie, Human Resources Christopher Kuhn, AndCo Consulting
Peter Brown, AndCo Consulting John W. Byrne, Prudential Retirement Jennifer Hain, Human Resources John Scott Boyd, Prudential Retirement
1. Meeting was open for public comment. No one spoke.
2. Chris Kuhn and Peter Brown of AndCo Consulting made a presentation to the Committee:
a. Reviewed rebranding and name change from The Bogdahn Group to AndCo Consulting. b. Distributed and discussed Asset Allocation Study – Part III, January 2017 report.
i. Motion by Van Pelt, supported by Meisner to recommend to full Board the “Proposed” asset allocation mix as detailed on page 9 of the report. Motion carried.
c. Distributed and discussed Large Cap Passive Strategies, January 2017 report. i. Motion by Meisner, supported by Van Pelt to recommend to full Board movement of
half (approximately 5%) of the current (approximately 10%) investment with State Street Global Advisors (SSgA) S&P 500 fund to SSgA’s S&P 500 Equal Weight
fund, as detailed on page 7 of their report, subject to fee negotiations. Motion carried.
d. Distributed and discussed Value-add and Opportunistic Real Estate Manager Analysis, September 30, 2016 report.
i. Committee agreed to interview three real estate fund firms, AEW, Dune and Alidade Capital, at the next meeting on February 13, 2017.
3. Discussion on the three Defined Contribution/Deferred Compensation plan investment
consultant finalists, Graystone, RPA and Schwartz. Reviewed content of the presentations
of January 17th and their original proposal responses. Chairperson VanLeuven informed of receipt of all positive feedback on reference check calls conducted, having spoken with at
least one member of each municipal client community provided by Graystone and RPA.
a. Motion by Rozell, supported by Van Pelt VanLeuven to enter into negotiations with
Graystone to serve as Defined Contribution/Deferred Compensation investment consultant and Participant education provider, pending successful contract negotiations.
Motion carried.
4. Moved by Meisner, seconded by Van Pelt, to adjourn the meeting at 12:20 p.m. Motion carried.
The next meeting is scheduled for Monday, February 13, 2017 at 9:00 a.m.
Respectfully submitted,
________________________________ ________________________________
James H. VanLeuven, Jr., Chairperson Rhonda Van Tiflin, Assistant Secretary
OAKLAND COUNTY EMPLOYEES'
RETIREMENT AND DEFERRED COMPENSATION BOARD
INVESTMENT SUB-COMMITTEE MINUTES
A meeting of the Oakland County Employees' Retirement and Deferred Compensation Board
Investment Sub-Committee was held February 13, 2017 at 9:00 a.m. in the Waterford Room, Executive Office Building (EOB). For phone line accessibility, meeting location changed from
East Oakland to accommodate AEW, unable to attend due to inclement weather. Notice of the new meeting location was posted at East Oakland at the time of the meeting.
Members Present: James H. VanLeuven, Jr. Joseph Rozell
Laurie Van Pelt Andy Meisner (via conference call)
Others Present: Jeff Phelps, Trustee Rhonda Van Tiflin, Human Resources Natalie Neph, Treasurer’s Christopher Kuhn, AndCo
Peter Brown, AndCo Emily Margolis, AEW (via conference call) Cia Buckley Marakovits, Dune Marc Davidson, AEW (via conference call)
Geoffrey Langdon, Alidade Steven Faliski, Alidade
1. Meeting was open for public comment. No one spoke.
2. Chris Kuhn and Peter Brown of AndCo Consulting made a presentation to the Committee;
a. Distributed and reviewed three reports: i. Asset/Manager Summary – February 2017
ii. Investment Performance Review for Period Ending December 31, 2106 iii. updated version of Value-add and Opportunistic Real Estate Manager Analysis,
January 19, 2017 report
b. Discussion on establishment of a retention guideline for unsolicited investment proposals. Agreement AndCo is to log unsolicited written (e-mail or hardcopy) inquiries
and proposals for investment consideration, to be retained and considered in searches meeting the corresponding strategy criteria for a period of two years from receipt.
3. Emily Margolis and Marc Davidson of AEW made a presentation (telephonically) to the Committee.
4. Cia Buckley Marakovits of Dune made a presentation to the Committee.
5. Geoffrey Langdon and Steven Faliski of Alidade made a presentation to the Committee.
6. Discussion on the three presentations. Motion by Van Pelt, supported by Rozell, to redirect
assets currently with Morgan Stanley for investment:
a. from the Oakland County Employees’ Retirement System (OCERS), $5 million to AEW
and $5 million to Dune, and
b. from the VEBA, $10 million to AEW and $10 million to Dune. Motion carried.
7. Moved by Meisner, seconded by Van Pelt, to adjourn the meeting at 12:30 p.m. Motion
carried.
Respectfully submitted,
________________________________ ________________________________
James H. VanLeuven, Jr., Chairperson Rhonda Van Tiflin, Assistant Secretary
OAKLAND COUNTY EMPLOYEES'
RETIREMENT AND DEFERRED COMPENSATION BOARD
INVESTMENT SUB-COMMITTEE MINUTES
A meeting of the Oakland County Employees' Retirement and Deferred Compensation Board
Investment Sub-Committee was held May 25, 2017 at 10:30 a.m. in the Royal Oak conference room, Executive Office Building (EOB).
Members Present: James H. VanLeuven, Jr. Joseph Rozell Laurie Van Pelt
Absent: Andy Meisner
Others Present: Jeff Phelps, Commissioner Rhonda Van Tiflin, Human Resources
Natalie Neph, Treasurer Jennifer Hain, Human Resources Jason May, Graystone Paige Ritchie, Human Resources
Freddie Sarno, Graystone
1. Jason May stated that Graystone had concluded a review of the 401(a) Defined Contribution and 457(b) Deferred Compensation plan documents that had been provided.
They found no issues and Graystone had no recommendations for any changes at this time.
2. Jason May and Freddie Sarno of Graystone presented to the Sub-Committee and provided
accompanying materials entitled 401(a) & 457(b) Plan 1Q 2017 Report: I. Investment Policy Statement
a. Discussion on best practices. Once consolidation under a single recordkeeper is achieved, Graystone recommends:
• Offering a single qualified default investment (QDIA) alternative
amongst the two plans (401(a) Defined Contribution and 457 Deferred Compensation).
• A “through” vs. “to” style QDIA be offered to address longevity risk.
• Reducing the number of investment offerings in each plan to between 12-20 funds (target date funds counting as one).
b. Motion by Van Pelt, seconded by Rozell, to recommend the Oakland County 401(a) & 457(b) Statement of Investment Policy Objectives &
Guidelines presented by Graystone to the full Retirement and Deferred Compensation Board for adoption. Motion Carried.
II. Plan Investment Review for period ending March 31, 2017 on the 401(a) Plan with ICMA-RC:
a. Motion by Van Pelt, seconded by Rozell, to recommend the following changes to the ICMA-RC 401(a) Plan investment lineup to the full
Retirement and Deferred Compensation Board for adoption. Motion carried.
• Remove Franklin Rising Dividend and move those assets to the Fidelity 500 Index Fund
• Remove Harbor International and move those assets to the MFS
International Value R6 Fund
• Remove Goldman Sachs Mid Cap Value and Columbia Mid Cap
Value and move those assets to the Victory Sycamore Established Value Fund
• Remove Franklin Natural Resources and move those assets to the
Dreyfus Natural Resources I Fund
• Add JP Morgan SmartRetirement 2050, 2055, and 2060
Investment Sub-Committee Minutes Oakland County Employees’ Retirement and Deferred Compensation Board May 25, 2017 Page 2
III. Plan Investment Review for period ending March 31, 2017 on the 457(b) with 401(a) Match Plan with Fidelity:
a. Motion by Van Pelt, seconded by Rozell, to recommend the following changes within the Fidelity 457(b) with 401(a) Match Plan investment offering lineup to the full Retirement and Deferred Compensation Board
for adoption. Motion carried.
• Remove Goldman Sachs Mid Cap Value and move those assets
to the Victory Sycamore Established Value Institutional Fund
• Remove Prudential Jennison Natural Resources and move those
assets to the Dreyfus Natural Resources I Fund
• Remove AB Discovery Value Fund and move those assets to the Victory Sycamore Established Value Fund
• Add T. Rowe Price Retirement 2060 IV. RFP Process
a. Discussed draft RFP and desired updates to be made in revised draft by Graystone:
• Increase scope to include other plans operated by Retirement Unit
of Human Resources to take advantage of economies of scale for total assets under management:
i. Part Time Non-Eligible (PTNE) 457 plan ii. Retiree Health Savings (RHS) plan
iii. Sidecar IRA (Roth and Traditional) iv. Payroll deduct IRA (Roth and Traditional)
• Designate need to offer the Prudential VT Retirement Income Advantage Fund, or if a vendor is proposing an equivalent
investment, detail on how to handle the transition.
• Scope of participant education to a minimum of 60 days per year, five on-site days per month.
• No commitment on pricing structure of per participant fee vs. traditional pricing and transparency.
• Loans directly deducted from participant’s bank via ACH
• Recordkeeper assumes duty for initial hardship determination, hardship appeals to Retirement Board.
• 457(b) new hire automatic enrollment at a zero deferral.
• Phone or on-line deferral changes allowed for 457(b) plans.
i. Offering of both straight dollar and percentage deferrals via
either method (phone or on-line).
• Vendor to provide detail on how 12 month put on the stable value
fund rollover would be addressed. b. Graystone is to provide this Sub-Committee final draft prior to issue and
all responses. Graystone will conduct initial evaluation of respondents and develop a finalist list for the Sub-Committee’s consideration.
3. Discussion on investment in options being offered through the Self Directed Brokerage
Accounts (SDBA). Graystone offers to research if there’s any legal restriction, but advises that they have not seen this offered by other plans and would advise against it due to the
increased risk.
4. Moved by Rozell, seconded by Van Pelt, to adjourn the meeting at 12:38 p.m. Motion carried.
Respectfully submitted,
________________________________ ________________________________ James H. VanLeuven, Jr., Chairperson Rhonda Van Tiflin, Assistant Secretary
OAKLAND COUNTY EMPLOYEES'
RETIREMENT AND DEFERRED COMPENSATION BOARD
INVESTMENT SUB-COMMITTEE MINUTES
A meeting of the Oakland County Employees' Retirement and Deferred Compensation (OCRDC)
Board Investment Sub-Committee was held September 14, 2017 at 12:45 p.m. in the Waterford Conference Room, Executive Office Building (EOB) Conference Center.
Members Present: James H. VanLeuven, Jr. Joseph Rozell
Andy Meisner Laurie Van Pelt (designee of County Executive)
Others Present: Curtis Childs, OCRDC Commissioner
Jeff Phelps, OCRDC Commissioner Jordie Kramer, Human Resources
Jennifer Hain, Human Resources Silvia Frank, Human Resources
Rhonda Van Tiflin, Human Resources Paige Ritchie, Human Resources
Lisa Villella, Human Resources Natalie Neph, Treasurer’s Office
Jason May, Graystone Consulting Tom Middleton, OCRDC Commissioner (joins at 1:01 p.m.)
Keith Lerminiaux, Corporation Counsel (joins at 1:05 p.m.)
1. Meeting was open for public comment. No one spoke.
2. Mr. May distributed a four page handout dated September 14th, 2017, including pricing data for
the finalist record keepers, ICMA-RC and Prudential. 3. Ms. Frank summarized the results of the reference check call that had been conducted on
Prudential earlier this same day with Ms. Peggy Haering of the State of Connecticut.
4. Mr. Rozell questions Prudential’s hard dollar amounts for the Retirement Health Savings and Part-time Not Eligible (PTNE) Plans detailed in Mr. May’s handout today as compared to
amounts Prudential had quoted in their September 11, 2017 presentation. Mr. May advises that the earlier PTNE quote had said $2.00/month, aggregated annually.
5. Mr. Middleton joins the meeting at 1:01 p.m.
6. Mr. Lerminiaux joins the meeting at 1:05 p.m.
7. Ms. Van Pelt suggests that Chris Burrows from IT be involved in any on-site visits to evaluate
system security.
Investment Sub-Committee Minutes Oakland County Employees’ Retirement and Deferred Compensation Board September 14, 2017 Page 2
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8. Motion by Rozell, support by Meisner, to terminate current contracts with ICMA-RC and Fidelity and to enter into contract with Prudential for combined recordkeeping services at the hard
dollar rates for a five-year contract with 60 days per year of on-site Participant consultant, conditioned upon successful conclusion of an on-site visit and the negotiation of a mutually agreeable contract. Motion carried.
9. The meeting was adjourned without objection at 1:26 p.m.
Respectfully submitted,
________________________________ ________________________________ James H. VanLeuven, Jr., Chairperson Silvia Frank, Secretary
OAKLAND COUNTY EMPLOYEES'
RETIREMENT AND DEFERRED COMPENSATION BOARD
INVESTMENT SUB-COMMITTEE MINUTES
A meeting of the Oakland County Employees' Retirement and Deferred Compensation (OCRDC)
Board Investment Sub-Committee was held October 30, 2017 at 10:01 a.m. in the Waterford Conference Room, Executive Office Building.
Members Present: James H. VanLeuven, Jr. Joseph Rozell
Andy Meisner Laurie Van Pelt (designee of County Executive)
Others Present: Jeffrey Phelps, OCRDC Commissioner
Jennifer Hain, Human Resources Silvia Frank, Human Resources
Paige Ritchie, Human Resources John Krakowiak, Graystone Consulting
Jason May, Graystone Consulting
1. Meeting was open for public comment. No one spoke.
2. John Krakowiak and Jason May presented to the Sub-Committee and provided accompanying materials entitled Fund Consolidation Review report – Prepared for Oakland County 401 (a)
ICMA’, 457 – Fidelity’, RHS – ICMA’ and 457 PTNE – ICMA’:
a. Discussed current lineup, stable value comparison and research report, Target Date analysis, suggested new line up, and asset class consolidation
b. Moved by Meisner, seconded by Rozell, to adopt the following fund changes (listed on
pages 86, 91-92, and 96), to the 401(a), 457, RHS, and 457 PTNE Plan investment line up, to be implemented with Prudential as recordkeeper in April 2018. Motion carried.
• Remove VT Plus Fund, VT Cash option, Franklin Adj US Govt Secs Adv, Prudential Short-Term Bond Z, and Franklin Low Duration Total Return and
move those assets to the Prudential Guarantee Income
• Remove JPMorgan SmartRetirement Series and move those assets to TIAA-CREF Lifecycle Index Funds
• Remove T. Rowe Price Target Retirement Series and move those assets to TIAA-CREF Lifecycle Index Funds
• Remove VT Vantagepoint Milestone Retirement Series and move those assets to TIAA-CREF Lifecycle Index Funds
• Remove Columbia Contrarian Core Z and move those assets to Fidelity 500
Index Institutional
• Remove Putnam Equity Spectrum Y and move those assets to Fidelity Mid
Cap Index Prem
• Remove Fidelity Small Cap Discovery Y, JPMorgan Market Expansion Index, Fidelity Advisor Small Cap Value I, and T. Rowe Price Small Cap Value Adv
and move those assets to Fidelity Small Cap Index Institutional
• Remove Causeway International Value Instl and Templeton Foreign Adv and
move those assets to Fidelity International Index Prem
Investment Sub-Committee Minutes Oakland County Employees’ Retirement and Deferred Compensation Board October 30, 2017 Page 2
• Remove Oppenheimer Developing Markets Y and move those assets to
Fidelity Emerging Markets Index Institutional
• Remove Vanguard Interm-Term Treasury and move those assets to Fidelity
Intermediate Treasury Bond Index
• Remove Fidelity Puritan K and move those assets to Fidelity Puritan
• Remove MFS International Value R6 and move those assets to MFS
International to Value R3
• Remove Fidelity Growth Company K, Putnam Grown Opportunities Y,
American Funds AMCAP R5 and move those assets to Fidelity Growth Company
• Remove T. Rowe Price Equity Income, American Funds American Mutual R5, and JPMorgan Equity Income R5 and move those assets to JPMorgan Equity
Income R6 (share class correction on 11/3/2017)
• Artisan Mid Cap Investor and Eaton Vance Atlanta Cap SMID I and move those assets to Eaton Vance Atlanta Cap SMID A
• Remove Oppenheimer Discovery Y and Victory RS Select Growth Y and move those assets to T. Rowe Price New Horizons
• Remove Fidelity Small Cap Value and move those assets to Fidelity Advisor
Small Cap Value I
• Remove MFS International Growth R4, Oppenheimer International Growth Y,
and American Funds Europacific Growth R5 and move those funds to American Funds Europacific Growth R5E (share class correction on
11/03/2017)
• Remove MFS Global Equity R4, American Funds Capital World G&I R5, and
Franklin Mutual Global Discovery Z and move those assets to American Funds New Perspective R6
• Remove Columbia Acorn International Z and move those assets to Vanguard
International Explorer Inv
• Remove PIMCO Total Return Instl and PIMCO Total Return P and move
those assets to Prudential Total Return Bond Z
• Remove Fidelity Advisor Strategic Income I and Pioneer Strategic Income K and move those assets to PIMCO Income A
• Remove Eaton Vance High Income Opps I and PIMCO High Yield P and move those assets to Prudential High Yield Bond Z
• Remove PIMCO Real Return P and move those assets to PIMCO Real Return A
• Remove Templeton Global Total Return Adv and Oppenheimer International
Bond Y and move those assets to Dreyfus/Standish Global Fixed Income I
• Remove Fidelity Asset Manager 20% and move assets to Columbia Income
Builder R4
• Remove Putnam Absolute Return 300 Y and move those assets to Prudential Total Return Bond Z
• Remove Victory Sycamore Established Value I and move those assets to Victory Sycamore Established Value A*** (share class correction on
11/03/2017)
• Remove VT Retirement Advantage Income and move those assets to
IncomeFlex Target Bal
b. The meeting was adjourned without objection at 11:36 a.m.
Investment Sub-Committee Minutes Oakland County Employees’ Retirement and Deferred Compensation Board October 30, 2017 Page 3
Respectfully submitted,
________________________________ ________________________________ James H. VanLeuven, Jr., Chairperson Silvia Frank, Secretary
OAKLAND COUNTY EMPLOYEES'
RETIREMENT AND DEFERRED COMPENSATION BOARD
INVESTMENT SUB-COMMITTEE MINUTES
A meeting of the Oakland County Employees' Retirement and Deferred Compensation (OCRDC)
Board Investment Sub-Committee was held November 27, 2017 at 1:51 p.m. in the Waterford Conference Room, Executive Office Building.
Members Present: James H. VanLeuven, Jr. Joseph Rozell
Andy Meisner Laurie Van Pelt (designee of County Executive)
Others Present: Silvia Frank, Human Resources
Paige Ritchie, Human Resources Lisa Villella, Human Resources
Jason May, Graystone Consulting Brian Mccleave, Prudential
James Lewis, Prudential Phillip Piesko, Prudential
Francine Trimble, Prudential
1. Meeting was open for public comment. No one spoke.
2. Brian Mccleave, James Lewis, Phillip Piesko and Francine Trimble presented to the Sub-committee and provided accompanying materials:
• Prudential Retirement Client Team Member Review
• Prudential Pathways, A Financial Wellness Series
3. The meeting was adjourned without objection at 3:48 p.m.
Respectfully submitted,
________________________________ ________________________________ James H. VanLeuven, Jr., Chairperson Silvia Frank, Secretary
OAKLAND COUNTY EMPLOYEES'
RETIREMENT AND DEFERRED COMPENSATION BOARD
INVESTMENT SUB-COMMITTEE MINUTES
A meeting of the Oakland County Employees' Retirement and Deferred Compensation (OCRDC)
Board Investment Sub-Committee was held December 14, 2017 at 10:01 a.m. in the Royal Oak Conference Room, Executive Office Building.
Members Present: James H. VanLeuven, Jr. Joseph Rozell
Andy Meisner Laurie Van Pelt (designee of County Executive)
Others Present: Curtis Childs, OCRDC Commissioner
Jeff Phelps, OCRDC Commissioner Jennifer Hain, Human Resources
Silvia Frank, Human Resources Paige Ritchie, Human Resources
Lisa Villella, Human Resources Jason May, Graystone Consulting
Brian McCleave, Prudential Daren Derfler, Prudential
Keith Lerminiaux, Corporation Counsel (joins at 11:15 a.m.)
1. Meeting was open for public comment. No one spoke.
2. Brian McCleave and Daren Derfler from Prudential presented to the Sub-committee and
provided accompanying material:
• The “How Do I Choose My Investments” Challenge (GoalMaker)
3. Keith Lerminiaux provided a verbal update on Prudential contract negotiations
4. Chairperson VanLeuven and Keith Lerminiaux provided a verbal update on PRISAII contract
negotiations a. Moved by Van Pelt, seconded by Rozell to recommend to full Board to
continue with execution of the PRISAII contract. Motion carried.
5. The meeting was adjourned without objection at 11:54 a.m.
Respectfully submitted,
________________________________ ________________________________
James H. VanLeuven, Jr., Chairperson Silvia Frank, Secretary