Download board of retirement

JAMES M. CONCIALDI, CH
JOEL THOMPSON
Appointed Representative
Plan Administrator
KATHY KOEN
Elected Representative
DEBRA MANSELL
Elected Representative
ADELBERT OLIVAS
County Treasurer
JUDY A. MARTINEZ
Appointed Representative
BOARD OF RETIREMENT
PUEBLO COUNTY, COLORADO
MINUTES
June 23, 2014
ROLL CALL
Board of Directors:
James Concialdi, CH
Debra Mansell
Judy Martinez
Kathy Koen
Del Olivas
Present
Present
Absent
Present
Proxy to JC
Also in attendance:
Heath Cardie
Dale Connors
Cynthia Mitchell
Tesh Shih
Joel Thompson
Jim Whitmire
Davin Wolny
Watershed Investment
Watershed Investment
County Attorney’s
J.P. Morgan
Plan Administrator
County Employee
County Attorney’s
CALL TO ORDER
A quorum was established and James Concialdi, chairman, called the meeting to order at
1:37 p.m. Mr. Concialdi then called for an executive session for the discussion of the
election of Board officers.
ELECTION OF OFFICERS
Mr. Concialdi, Board chair, brought the meeting back into session at 1:45. The first order
of business was to conduct the vote for officers using roll call vote. For Chairman, Ms.
Koen votes for James Concialdi, Debra Mansell votes for James Concialdi, via proxy,
Del Olivas votes for James Concialdi, Mr. Concialdi abstained. By majority vote, Mr.
Concialdi is chair. For Vice-Chair, Ms. Koen votes for Debra Mansell, Ms. Mansell votes
for Debra Mansell, via proxy Del Olivas votes for Debra Mansell, James Concialdi votes
for Debra Mansell. By majority vote, Ms. Mansell is Vice-Chair.
Minutes
June 23, 2014
Page 2
Treasurer will be Del Olivas by statute. For Secretary, Ms. Koen votes for Kathy Koen,
Ms. Mansell votes for Kathy Koen, by proxy, Del Olivas votes for Kathy Koen, James
Concialdi votes for Kathy Koen. By majority vote, Kathy Koen is Secretary.
APPROVAL OF CONSENT AGENDA
Ms. Koen moved for approval of the consent agenda. Ms. Mansell seconded, and the
Board approved.
INVESTMENT MANAGER REPORT – JP MORGAN
Ms. Tess Shih, Client Advisor, J.P. Morgan Asset Management presented the Portfolio
Review for Pueblo County retirement fixed funds. Management for Pueblo County
retirement investments began with J.P. Morgan in 2010, with the comingled funds
beginning in 2012. Since then our cumulative investment gains have lead the index. J.P.
Morgan’s approach is value driven. Our current portfolio has an actual 9.26% allocation
to J.P. Morgan (Report attached).
QUARTERLY INVESTMENT/OBJECTIVES REPORTS - WATERSHED
Mr. Dale Connors, managing director of Watershed Investment Consultants, presented
the Puebo County Retirement Asset Allocation vs. Target & Policy report through May
31, 2014, followed by the investment summary for May and year to date 5/31/2014.
Through the five months reported our aggregate gain on all investments is 3.74%, net of
fees, leading the policy index of 3.64%. Total dollars in the fund as of May 31 is 125.9
million.
PRIVATE EQUITY AND MLP INVESTMENT OPPORTUNITIES
Mr. Heath Cardie, and Mr. Dale Connors gave the retirement Board a
presentation/training on two types of investment options that are available.
Mr. Cardie, introduced Private Equity investments as a means of enhancing the portfolio
on a return of investment standpoint. Private Equity historically has compared favorably
with the stock market – in the 20 years ended December 31, 2013, Private Equity has
shown a 15.9% gain, compared to US Equity at 9.3%. The risk associated with Private
Equity is typically from the standpoint of liquidity. A recommended allocation for Private
Equity would be 5% of the portfolio.
Master Limited Partnerships (MLP’s) were presented by Mr. Connors as an enhancement
to returns, not to limit risk. MLP investments are typically in the area of energy,
specifically on infrastructure, such as pipe lines. MLPs are attractive currently because
they are predictable in both their cash flow generation and growth since the US is
pushing for energy independence. Risks associated with MLPs are not based on liquidity,
but rather volatility on the stock exchange. A recommended allocation for MLPs would
be 5% of the portfolio.
Minutes
June 23, 2014
Page 3
NEW BUSINESS
Mr. Concialdi continued the conversation from the last meeting concerning adopting a 30
year amortization period in our actuarial valuation, per recommendation of Buck
Consultants, our actuarial consultants. After discussion, Ms. Mansell made the motion to
adopt a 30 year amortization period. Ms. Koen seconded and the Board approved. Mr.
Thompson will inform Buck Consultants of the change.
NEXT MEETING
The next regular meeting will be held on July 28, 2014, at 1:30 pm in the third floor
conference room of the Courthouse.
ADJOURNMENT
There being no further business, the meeting was adjourned at 3:40 pm.
Joel Thompson
Plan Administrator
PUEBLO COUNTY COURTHOUSE
215 WEST 10 TH STREET, PUEBLO CO 81003-2992
(719) 583-6026
FAX: (719) 583-6549