Retirement Services Division October 1, 2008 INVESTMENT SUBCOMMITTEE MEETING MINUTES

INVESTMENT SUBCOMMITTEE MEETING MINUTES

Date: October 1, 2008	Time: 2:00 p.m.


X Regularly Scheduled	____ Special


Attendees:	Was a quorum present? Yes
Commission	Other Attendees
Peter Blum	Kay Carey-Reid (ING)
Charlie Casella	Lisa Gelardi (ING)
Mary Marcial
Robert Baas (by telephone)
Comptroller's Office
Thomas Woodruff, Division Director
Margaret Haering, Assistant Director
Araceli Alvarez, Employee Benefits Unit
Scott Anderson, Assistant Director

Matters Discussed:
Kay Carey Reid reviewed the reasons for adding the DFA Real Estate Fund to the plans' investment line-up and provided information about Vanguard REIT Fund redemption fees assessed against participant accounts in 2007 and 2008.

Bud Hancock from ING's Fixed Income group provided an analysis of the current financial conditions and its impact on securities in the Stable Value Fund. Bud responded to questions from subcommittee members about the Stable Value Fund's composition and intended investment of inflows.

We also discussed the proposed elimination of the Vanguard FTSE Social Choice fund due to poor performance and a change in its investment strategy and index.

Materials Reviewed:
The subcommittee reviewed information on the top ten holdings in the DFA Real Estate Fund and the Vanguard REIT fund. Tom Woodruff shared the contents of an email from Steve Greatorex concurring in the proposed changes in the plans' investment line-up.

Decisions voted upon:

The DFA Real Estate Securities Fund will be added to the plans.
The Vanguard FTSE Social Choice will be eliminated from the plan.
ING in consultation with the Division and the Subcommittee will prepare a notice to participants advising them of the changes in the fund line-up, the reasons for the elimination of the FTSE fund and a plan to map all assets in the fund to the TIAA-CREF Social Choice fund for those who fail to act. Participants will be given at least 60 days from the date of the notice to make transfer assets from the Vanguard FTSE fund.

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