Retirement Services Division May 24, 2018 Meeting Minutes of the State Employees Retirement Commission Investment Subcommittee

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Date: 05/24/2018 Time: 2:00 p.m.
X Regularly Scheduled __  Special
Attendees: Was a quorum present? Y
Retirement Commission Other Attendees
Charlie Casella   Frank Picarelli, SegalMarco
Michael Bailey Vanessa Vargas, SegalMarco
Michael Carey   Joel Fein, Prudential
Sandra Browne-Brewton   Jada Swinski, Prudential
  Mike McCann, Prudential
Absent Commission Members
Salvatore Luciano  
Laila Mandour 
Comptroller's Office  
Thomas Woodruff, Director, HPBSD . 
Margaret Haering (Asst. Director, HPBSD  
John Herrington, Director, RSD 
Amy Cason, Associate ARBO, HPBSD 

Matters Discussed: Investment performance review by our consultant. Three funds are on the Watch List: Wells Fargo Large Cap Growth, VIP ContraFund and VIP Fidelity Mid-Cap Portfolio. Consideration of a small cap value fund was deferred to the next meeting.

Prudential reviewed demographics for all three plans. Withdrawal activity was higher than usual in all plans, primarily due to a large number of retirements. Rollovers out of the plans were reviewed for each plan.

The committee reviewed the GoalMaker participation and the quarterly performance statistics; the committee considered replacing one of the Large Growth funds, Fidelity� VIP Contrafund� Portfolio, in the GoalMaker portfolios due to its poor performance.  After reviewing possible candidates with our consultant, the committee selected the TIAA-CREF Large Cap Growth Index to be used in its stead in GoalMaker.  Amy Cason reported on Stable Value activity; it does not appear that the SAG Award implementation has resulted in any significant activity in the Stable Value Fund. 

Materials Reviewed:
SegalMarco, Analysis of Investment Performance, 1st Qtr. 2018
Prudential Combined Plans Summary, 1st Qtr. 2018
Stable Value Cash Flow review

Decisions voted upon: Upon motion and second, the committee unanimously voted to remove the Fidelity� VIP Contrafund� Portfolio from the GoalMaker portfolios and to use the TIAA-CREF Large Cap Growth Index instead.  The timing of the fund replacement will coincide with the next quarterly rebalancing of the GoalMaker portfolios.

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