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INVESTMENT SUBCOMMITTEE
MEETING MINUTES
| Date: October 17, 2012 | Time: 3:00 p.m. |
| X Regularly Scheduled | __ Special |
| Attendees: | Was a quorum present? Yes |
| Commission: | |
| Charlie Casella | |
| Steven Greatorex | |
| Robert Baus | |
| Michael Carey | |
| Comptroller's Office | |
| Thomas Woodruff, Director, HPBSD | |
| Margaret Haering, Assistant Director, HPBSD | |
| Brenda Halpin, Director, RSD |
Matters Discussed:
Brenda Halpin reviewed the status of the Retirement Division's efforts to
complete the calculations and issue invoices for members of the Alternate
Retirement Plan who want to transfer into the Hybrid Plan. Priority has
been given to processing those members who have large account balances and/or
are close to retirement to reduce the impact on the Stable Value Fund. The
Retirement Division anticipates that it will be issuing a number of invoices
shortly, which should result in a transfer of assets from the Stable Value Fund
to the Hybrid plan.
The Committee reviewed recommendations to replace the American Funds Growth Fund
of America. Three different funds were considered: ING Large Cap Growth
Fund, T.Rowe Price Institutional Large Cap Growth and Wells Fargo Prem. Large
Company Growth I. The funds were comparable in performance; however, it
was the Committee's view that the Wells Fargo fund had performed more
consistently during the period from 2008 to 2012.
The Committee also discussed potential addition of a commodity-based fund to the
investment line-up to offer more diversification potential. The main
contenders were two PIMCO funds that were based on TIPS; however, as the Plan
already has the Vanguard TIPS index, it was felt that this space was already
adequately covered. We also discussed the potential for adding a real
asset based/commodity fund. However, because ING cannot restrict access to
a particular investment option to the Morningstar Managed Portfolios, the
committee did not want to add a real asset based fund at this time due to
volatility concerns.
Materials Reviewed:
Milliman, Large Cap Growth Equity Fund Manager Memo
Morningstar Large Cap Growth Manager Analysis
Decisions voted upon:
Replace American Funds Growth Fund of America with the Wells Fargo Advantage
Prem. Large Growth Fund
Do not add any additional funds to the Plans at this time.
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