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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