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Santa Clara Valley Transportation Authority
Amalgamated Transit Union, Local 265 Pension Plan
BOARD OF PENSIONS
Tuesday, June 12,2018
11:00 a-m.
Conference Room B-1 04 Valley Transportation Authority (VTA)
3331 North First Street San Jose, California
AGENDA
1) CALL TO ORDER/ROLL CALL
2) ORDERS OF THE DA Y
3) PUBLIC PRESENTATIONS This portion of the agenda is reserved for persons desiring to address the Board on any matter not on the agenda. Speakers are
limited to 2 minutes. All statements that require a response will be refened to
staff for reply in writing.
CONSENT AGENDA
4) Approve Minutes of May 8, 2018.
5) Approve Requests for Service Pension:
a) Mark Garcia #3560 -.Option F-1 b) Robert C. Lopez #2004 - Option F -1 c) . Albert Reed, Jr. #2221 -Option A
6) CLOSED SESSION
7) Matters pertaining to Personnel: Disability Medical Records.
8)
a) Lee Davis Employee #3082/11245, Retiree #12096
REGULAR AGENDA
CLOSED SESSION REI'ORT
3331 Norlh firs! II reel, Bldg. Bl • San Jose, CA 95134-1927 ·Phone 408.311.5808 ·fox 408.955.0890
9) Approve/Deny Termination of Required Annual Medical Reevaluation for Lee Davis Employee #3082/11245, Retiree #12096.
10) Approve Requests from Board Members and Staff to Attend Educational Programs. (Chavez)
a) SACRS Public Pension Investment Management Program, July 1 5 -18, 2018, University of Califomia Berkeley, Berkeley, CA.
·
b) CALAPRS Principles of Pension Management, August 27-30, 2018, Pepperdine University, Malibu, CA.
11) Approve Tempormy ATU Representative to Investment Committee. (Russell)
12) Receive and File Repmi on VTA- ATU, Local265 Pension Plan Investments for Month of April2018. (Bill)
13) Receive and File Education Policy Compliance Report. (Chavez)
14) Receive Update on Pending Final Benefit Payments. (Chavez)
15) Receive Update on Separated Employees' Distribution of Contributions Report. (Chavez)
16) Receive Investment Committee Chairperson's Repmi. (Hudda)
17) Review Board of Pensions' Work Plan.
18) Consider Requests for Future Agenda Items.
19) Receive Chairperson's Report. (Gill)
20) Announcements and Communications
21) Adjourn
NOTE BOARD MEMBERS: In order to establish whether or not a quorum exists for this meeting, members are asked to call Maria Chavez in the Human Resources Department at (408) 321-5548 before 5:00p.m. on the day prior to the meeting. Thank you for your cooperation.
All public records relating to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the Board of Pensions less than 72 hours before the meeting will be available for public inspection at 3331 North First Street, San Jose, CA at the same time that the public records are distributed or made available to the Board of Pensions.
In compliance with the Americans with Disabilities Act (ADA), those reqmrmg accommodations or accessible media for this meeting should notifY Maria Chavez in the Human Resources Department 48 hours prior to the meeting at ( 408) 321-5548.
AGENDA ITEM #4
Santa Clara Valley Transportation Authority
Amalgamated Transit Union, Local 265 Pension Plan
BOARD OF PENSIONS
SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
AMALGAMATED TRANSIT UNION, LOCAL 265 PENSION PLAN
· 3331 North First Street
San Jose, CA 95134
May 8, 2018
SUMMARY MINUTES
1. CALL TO ORDER at 11 :02 a.m.
ROLL CALL: Members Present: Fadal (Alternate), Gill, Hammell (Alternate), McKeon (Alternate), Ragni (Alternate), Rosenquist, Russell, Srinath
Members Absent: Hudda, Kraynick
A Quorum was present.
2. ORDERS OF THE DAY
There were no Orders Of The Day.
3. PUBLIC PRESENTATIONS
There were no Public Presentations.
CONSENT AGENDA
4. Minutes of Apri19, 2018
Board of Pensions Summary Minutes
Pagelof5 Tuesday, May 8, 2018
3331 llorth Firslllreel, Bldg. Bl • lon Jose, (A 95134·1927 • Phone 408.321.5808 • Fox 408.955.0890
5. Requests for Service Pension:
a) Theron B. Butler #3378- Option B b) Joseph Bonilla-Pfeiffer #2867 -Pre-Retirement Death Benefit c) JoAnn V. Sustrick #4433- Tetminated Vested
M/S/C (Rosenquist/Russell) to approve the Consent Agenda.
REGULAR AGENDA
6. Amalgamated Transit Union Employer Contribution Effective July 1, 2018
Resulting from Annual Valuation As of January 1, 2018
Maria Chavez, Senior Human Resources Analyst, clarified that at the last meeting, Vice-Chairperson Hudda had raised the issue that the employer's contribution as a percentage of payroll for the ATU staff should be the same as that of other A TU employees. Cheiron re-calculated the employer contribution for the ATU staff and it is reflected in this document.
M/S/C (Srinath/Russell) to Approve the Amalgamated Transit Union Employer Contribution Effective July I, 2018 Resulting from Annual Valuation As of January 1, 2018.
7. Recommendation oflnvestment Committee of Firm to Provide Actuarial Audit Services
Ms. Chavez summarized the Investment Committee's review process of the RFPs
and its recommendation.
M/S/C (Rosenquist/Fadal) to Approve the Recommendation ofinvestment Committee of Firm to Provide Actuarial Audit Services.
8. NEPC First Quarter 2018 Investment Performance Analysis
Sean Bill, Investment Program Manager, introduced Don Stracke, Senior Consultant from NEPC, who provided an overview of the SCVTA-ATU, Local 265 Pension Plan March 31, 2018 Quarterly Performance Report.
NOTE: M/S/C MEANS MOTION SECONDED AND CARRIED AND, UNLESS OTHERWISE INDICATED, MOTION PASSES UNANIMOUSLY.
Board of Pensions Summary Minutes
Page 2 of5 Tuesday, May 8, 2018
9. Report on VTA- ATU, Local265 Pension Plan Investments for Month of March2018
Mr. Bill commented that the ATU Pension Plan Fund returned -0.61% for March versus its benchmark which returned -0.45%.
He added that the ATU Spousal Medical Fund returned -1.49% for March versus its benchmark which returned -1.27%.
He discussed the effect of the diversification in a down market.
Member Rosenquist refened the Board to the page after page five of five to clarifY that the Cash allocation was not an umealized gain or loss.
10. Spousal Medical Fund and Retiree Vision!Dental Fund Reports for Quarter Ending March 31, 2018
The Spousal Medical Fund and Retiree Vision/Dental Fund Reports for Quarter Ending March 31, 2018 was received and filed.
Member Rosenquist stated he is extremely worried about the Spousal Medical Fund and the total assets. He does not believe that on a long term basis, they will be able to sustain it. He commented that he is glad they are conducting the valuation.
11. Quarterly Budget Review for Period July 1, 2017 Through March 31, 2018
The Quarterly Budget Review for Period July 1, 2017 Tlu·ough March 31, 2018
was received.
Chairperson Gill stated he requested that the employee contributions be included on the budget document. He wants to see the totals on the next budget review.
12. Update on Pending Final Benefit Payments
The Update on Pending Final Benefit Payments was received.
13. Update on Retiree/Beneficiary Reimbursement Payments Related to Medical Plan Premiums Report
The Update on Retiree/Beneficiary Reimbursement Payments Related to Medical Plan Premiums Report was received.
Board of Pensions Summary Minutes
Page 3 of 5 Tuesday, May 8, 2018
14. Update on Separated Employees' Distribution of Contributions Report
The Update on Separated Employees' Distribution of Contributions Report was
received.
15. Investment Committee Chairperson's Report
Mr. Bill summarized Wedge's presentation at the Investment Committee meeting.
There was no Investment Committee Chairperson's Repm1.
16. Board of Pensions' Work Plan
Member Rosenquist inquired about the Retiree Dental Benefits item on the work
plan.
Ms. Chavez stated that she revised the item to include the Board's action to
approve the renewal contract through to August 31, 2019. She added that they are waiting for the actuarial valuation to be conducted for ATU to decide how they
want to proceed with the benefits.
Member Rosenquist asked when they expect to have the valuation results.
Ms. Chavez responded she is working on the data to provide Cheiron. It will then
take Cheiron approximately 2 months to complete the valuations.
Member Rosenquist requested staff update the work plan to include an
approximate completion date.
Member Rosenquist asked if they expect to have the policies completed by July.
Ms. Chavez responded no.
17. Requests for Future Agenda Items
There were no Requests for Future Agenda Items.
18. Chairperson's Report
There was no Chairperson's Report.
19. Announcements and Communications
There were no Announcements and Communications.
Board ofPensions Summmy Minutes
Page 4 of5 Tuesday, May 8, 2018
20. Adjourn
On order of Chairperson Gill, there being no objection, the meeting was adjourned at 11:54 a.m.
Board of Pensions Summary Minutes
Page 5 of5
Respectfully Submitted,
Lito Sonico Human Resources Assistant Human Resources Department
Tuesday, May 8, 2018
SACRS'"
REGISTER.
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AGENDA ITEM #lOa
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center for
UC Berkeley executive education
July 15-18, 2018
I .2
Program Schedule'
Much has changed in finance in the last 50 years; tt1is four-day program will bring you to the frontier of current investment theory and practice. Tt1e program is presented on the beautiful and dynamic campus of UC Berkeley and is taught by the world renowned Finance faculty from UC Berkeley's Haas School of Business
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'f.6R ti�vt;J.!l\l$fM ... Registration & Breakfast
Claremont Hotel 7:15am - 8:15am
Claremont Hotel
Program Welcome SACRS/John O'Brien
8:30 -8:45am
Program Overview & Goals
Gregory LaBlanc 8:45-9:00am
Pension Fund and Investment Basics
Thomas Gilbert 9:00 -10 30am
10:30am Break
Return, Risk and Diversification Thomas Gilbert
11 00 -12 30pm
12:30 -1:30pm lunch
Practical Mean-Variance Analysis
Thomas Gilbert 1.30-3:00pm
3:00pm Break
CAPM and luck vs. Skill Thomas Gilbert 3:30-5 00pm
Dally Synthesis & Adjourn 5:00-5:15pm
.... ..... M<)NPAY. <: .. · •··,. \ )"Qi;�DIIY
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Claremont Hotel 7:00am-8:00am
8:00am Depart Hotel
Haas, 5400 Classroom
Financial Economics for Pensions
Forecasting Assets Cook County Case
Gregory LaBlanc 8 30- !0:15am
10:15am Break, Group Photo
Forecasting liabilities: Actuarial Science
Tt1omas Gilbert and Graham Schmidt 10:45 -12:15pm
12:15 -1:30pm lunch
Portfolio Management and Performance
Measurement Thomas Gilbert 1 30-3:00pm
3:00pm Break
Systematic Risk and Luck vs. Skill: DFA Case
Discussion Thomas Gilbert 3 30-5 OOpm
Daily Synthesis & Adjourn 5;00-5;15pm
Breakfast Claremont Hotel
7:00am-8:00am
8:00am Depart Hotel
Haas. 5400 Classroom
Disruptive Technologies: Transforming the Future
of Investment Gregory LaBlanc
830-945am
9:45am Break
Keynote Speaker Robert Reich
10:00 -11 OOam
ll:O Oam Break
Real Assets Robert Edelstein 11 30-1 OOpm
1:00-2:00pm lunch
Alternative Investment Strategies: PE Case
Discussion Gregory LaBlanc
2 00 ··3:15pm
3:15 pm Break
Alternative Investment Strategies: Hedge Funds
Gregory LaBlanc 3 30-5:00pm
Dally Synthesis & Adjourn 5:00- 5:15pm
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Breakfast Claremont Hotel
7:00am-· 8:00am
8:00am Depart Hotel
Haas, 5400 Classroom
ESG Case Discussion Norway SWF and
WalMart Case Gregory LaBlanc
8:30-945am
9:45am Break
Pension Fund Governance Panel
Gregory LaBlanc. Moderator Jennifer Urdan,
Cambridge Associates. Harvey Leiderman,
Reed Smith Janine Guilot. SASB
10 15 -12 OOpm
12:00- 1:15 pm lunch & Berkeley Technology Tour
Behavioral Finance: Overconfidence and
Expertise Gregory LaBlanc
1:15-3:15pm
3:15 pm Break
Leadership and the Role of the Trustee Arina Isaacson 3:30-5 OOpm
Final Evaluations/ Certificates
Adjourn Reception at
Claremont Hotel 5 30-6 30pm
Reception at Claremont Hotel
5 30-6 30pm
Reception at Claremont Hotel
5 30-6 30pm
f ''"'��$�\!sJi,SiY2���;; . .; SACRS Pub\lc Pensionlnves\men\ Management Program 2018 I UC Berkeley Center for Executil'e Educatron
Exceptional Educational Opportunity
SACRS Public Pension Investment
Management Program 2018
Are you ready for an immersive, profoundly impactful learning experience? Here's your chance, as you join fellow public pension trustees and retirement staff for SACRS' Public Pension Investment Management Program 2018, taking place July 15-18. Entitled 'Modern Investment Theory and Practice for Retirement Systems,· the program is presented in partnership with the UC Berkeley Center for Executive Education at the Haas School of Business. This exclusive four-day program is designed for SACRS trustees and staff that aspire to better understand current investment theory and practice.
The SACRS Public Pension Investment Management Program blends the expertise of the University of California, Berkeley-Haas School of Business's distinguished faculty with a network of industry experts to teach the fundamentals of public pension management As the spotlight on public pensions grows hotter. trustees and staff are increasingly challenged to grapple with alternative investments, policy and governance changes, cost pressures, and much more. After completing this program. attendees will understand the larger context and history of public pension funds and will have enhanced skills and knowledge to improve decision-making.
Over the course of the four-day program, attendees will have the opportunity to explore the predictability of asset returns, review the role of fixed income in the pension portfolio, take a look at how real estate fits into the pension portfolio mix, delve into private equity's new landscape, study the new math of hedge funds, and more. For the complete program see the facing page.
Located in one of the most stimulating business environments in the world, the Berkeley campus is at the intersection of business and academia. Berkeley-Haas is renowned for developing innovative business leaders-individuals who redefine the business landscape by putting new ideas into action in all areas of their organizations.
This is such a rich opportunity for extended learning and presented so conveniently in a concise package, maximizing your time and effort. Education is the cornerstone of SACRS' mission. The UC Berkeley Center for Executive Education staff along with the SACRS Affiliate team is committed to the continual development and delivery of content that is current, innovative, results-driven, and responds to the needs of public pension trustees and staff. Attendees in this program will not only gain new insight and knowledge, but also wHI add to the core strengths of our organization-the range of expertise and the diversity of perspective found in our public pension community.
We urge you to consider participating.
Sincerely,
Dan McAUister SACRS President. San Diego County Treasurer-Tax Collector and San Diego County Employees Retirement Association Trustee
Sutema H. Peterson SACRS Administrator
� lnvesco
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UC Berkeley Center for Executil"e Education I SACRS Pub::c Pens;on lrwestment 1-lanagement Program 2018 3 I
center for
UC Berkeley executive education
UC Berkeley Faculty Biographies
GREGORY LABLANC
< ,HJ < ,ouY l/\BI/\1\)t has been a
lecturer at UC Berkeley since
2004. teaching courses in Fi
nance, Accounting, Law, and
Strategy in the Haas SchooL the
Law School (Boalt Hall) and the
department of Economics. Prior
to joining the Berkeley faculty, he
studied Economics, Business, and Law at the Whar
ton School of the University of Pennsylvania, George
Mason University Law SchooL Duke Law SchooL and
Berkeley Law (Boalt Hall). He has previously taught
Finance, Management. Law and Economics at the
Wharton SchooL Duke University and the University
of Virginia and has been a consultant in the fields of
IP litigation and competitive intelligence. His re
search focuses on the impact of tax policy on orga
nizational design, capital formation, and innovation.
He has received several teaching awards and has
previously been involved in executive education pro
grams at the Wharton School and Darden School.
JOHN O'BRIEN
J<>l lt0 o·I'I!W I'-! is Adjunct Pro
fessor and Academic Advisor to
the Master's in Financial Engi
neering IMFEI program at the
Haas School of Business. Prior to
joining Haas in 2000, Mr. O'Brien
was Managing Director at Credit
Suisse Asset Management re
sponsible for the performance measurement and
risk management functions.
Prior to Credit Suisse, Mr. O'Brien was co-founder,
Chairman and CEO of Leland O'Brien Rubinstein
(LORI Associates. and Chairman of the Capital Mar
ket Fund, and the S&P 500 SuperTrust - the first ex
change traded fund IETFI. Prior to LOR, Mr. O'Brien
co-founded Wilshire Associates (originally operated
as O'Brien Associates), and co-developed the Wilshire
5000 common stock index (originally named and
published as the O'Brien 5000 Index).
Mr. O'Brien has received various awards, includ
ing the Financial Analyst's Graham and Dodd Scroll
Award, the Matthew R. McArthur Award from the In
vestment Management Consultants Association for
lifetime contributions to investment consulting. Mr.
O'Brien was named among Fortune Magazine's ten
Businessmen of the Year in 1987. Mr. O'Brien holds
a S.B. in economics from MIT. and an M.S. in opera
tions research from UCLA. He served as a Lieutenant
in the United States Air Force.
Instructor Biographies
THOMAS GILBERT
11 :or\1,;\:, < .11 r;1 1; 1 graduated
from the Finance Ph.D. Pro
gram at the Haas School of
Business in May 2008. Thom
as is currently an Assistant
Professor of Finance and Busi
ness Economics at the Mi
chael G. Foster School of
Business. University of Washington. His research
lies in the area of information aggregation and the
role of macroeconomic announcements on stock
prices. Since 2003, he has taught parts of the Cer
tified Investment Management Analyst program
(CIMA®) and the Berkeley Finance Series within
the Finance Executive Programs at the Haas
School of Business. He has also taught in the Un
dergraduate, Full-Time MBA, and Evening & Week
end MBA programs at Haas, for which he won the
Best Graduate Student Instructor Award in 2005,
2006, and 2007. He holds a Masters in Finance
from U.C. Berkeley and a Masters in Physics from
Imperial College (United Kingdom).
GRAHAM SCHMIDT, Cheiron
t,IUdl/\1/i \(Ill/ill) I (Associ
ate- SOA, Member-AAA, Fel
low-CCA) served as the Senior
Vice President of EFI Actuaries
for ten years before joining
Cheiron as a consulting actu
ary upon the merger of EFl
and Cheiron in 2013. Graham
is a frequent speaker at public employer confer
ences, on topics including actuarial funding poli
cies, asset-liability management and GASB-related
issues. In recent years. he has spoken at national
meetings sponsored by NCPERS, the Society of
Actuaries. the Academy of Actuaries and other re
gional organizations, such as SACRS and CAlA
PRS.
Graham is the SACRS-appointed representative
to the California Actuarial Advisory Panel (CAAP),
and is also a member of the Academy of Actuaries
Public Plans Subcommittee and the Conference
of Consulting Actuaries Public Plans Committee,
the primary actuarial committees dealing with
public sector retirement issues in the US.
SACRS Team
BENJAMIN LAZARUS, Parametric
/v\1� 1 /1;/;Ud\ joined the firm
in 2004*. He is responsible for
developing, coordinating, and
executing the business devel
opment and client services
plan for Parametric unique
family of products with em
phasis on the Western region
of the United States and Canada. In addition, Ben
works on developing and managing new partner
ships for Parametric and has presented on the use
of derivatives at different industry events. From
2015 to 2016, he was the Senior Vice President of
US Sales at Nuveen Investments in Minneapolis,
Minnesota. Ben earned a B.A. in Psychology from
the University of California, San Diego and an MBA
in Marketing and Strategic Management from the
University of Minnesota. He is a CFA® charter
holder and a member of the CFA Society of Min
nesota. *Reflects the year employee was hired by
The Clifton Group, which was acquired by Para
metric Portfolio Associates® LLC on December
31, 2012
TERI NOBLE, Pathway
I.J1 �). I,J o fl! f joined Pathway in
2017 and is a senior vice presi
dent in the California office.
She is responsible for client
servicing and business devel
opment in the United States.
Prior to joining Pathway, Ms.
Noble served as senior vice
president, client portfolio manager, for American
Realty Advisors, and before that she served as
senior vice president at BNY ConvergEx. At both
firms, she focused on managing and cultivat
ing consultant and institutional relationships. Ms.
Noble earned a BA from the University of Califor
nia, Davis, and an MBA from St. Mary's College of
California and holds Financial Industry Regulatory
Authority (FINRA) Series 7, 63, and 65 licenses. She
is involved in several national and regional organi
zations and serves as an affiliate committee mem
ber of the State Association of County Retirement
Systems (SACRS) and as a committee member
of Women in Institutional Investments Network
(WIIlN)
UC Berkeley Center for Executive EducatiOn I SACRS Publ1c Pens'on Investment Management Pmgram 2018 [ 5 I
SACRS Team Continued
DELIA M. ROGES, lnvesco
1 H I 1/•, l/1. 1(0( d: �,, lnvesco is a
member of the lnvesco US In�
stitutional Sales and Service
Team. As managing director,
she is responsible for relation�
ship management and new
business generation for in
stitutional investors in public
funds in the western United States. Ms. Rages has
been in the institutional investment management
business since 1991.
Prior to joining lnvesco in 2011, she was a senior
member of a boutique investment banking and
private placement firm focused on securing capi
tal for private equity and real estate general part�
nerships. She served previously as a Senior Vice
President at Trust Company of the West where she
was responsible for advising institutional clients
and developing product solutions for new busi�
ness development. Ms. Rages serves on the Board
of Regents to Loyola Marymount University and
on the Board of Visitors at the School of Educa�
tion at LMU. She earned an MBA at the University
of Southern California and a Bachelors in Business
Administration from Loyola Marymount University.
KRISTIN V. SHOFNER, Fidelity Institutional Asset Mgmt.
IWIS'i!N (;1 IOI't�FH is Senior
Vice President Business De
velopment at Fidelity lnstitu�
tiona[ Asset Mgmt. In this role.
she leads the development of
relationships with public pen�
sian plans.
Prior to joining Fidelity in
2013, Kristin was a Director of Institutional Sales
and Marketing at Lord Abbett & Co. Inc since June
2003. Her previous positions include serving as a
manager of Institutional Sales and Client Services
from 2000 to 2003 and as a manager research
associate from 1998 to 2000 at Asset Strategy
Consulting/lnvestorForce, Inc. She has been in the
industry since 1998. Kristin earned her bachelor of
arts degree in history and sociology from the Uni�
versity of California at Santa Barbara.
EDWARD J. HOFFMAN, Verus
ley benefits plans.
Ml{. 1101 ll./1/d� brings over 20
years of experience to his cli
ents, providing strategic in�
vestment advice to ensure
that clients meet their long�
term investment objectives.
He serves as lead consultant
to both public and Taft�Hart�
Before joining Verus (previously known as Wurts
& Associates) in 2011. Mr. Hoffman served institu�
tiona[ clients at Legg Mason and Prudential. In ad
dition to his client service responsibilities at Legg
Mason, he served on the asset management divi
sion operating committee and Legg Mason Funds
valuation committee, led corporate development
initiatives including several related to the 2005
acquisition of Citigroup's asset management divi
sion, and managed a variety of product develop�
ment initiatives. Today, his work in risk�based ad�
visory services provides an additional and valuable
perspective to his non-discretionary clients.
Mr. Hoffman earned a bachelor of science (BS)
in industrial management with college and uni
versity honors from Carnegie Mellon University,
where he earned membership into Beta Gamma
Sigma and Mortar Board honor societies. He
earned a master's degree in business administra
tion (MBA) from the Harvard Business School. He
has earned the Chartered Financial Analyst (CFA)
designation and is certified as a Financial Risk
Manager (FRM). He is also a member of the CFA
Society of Los Angeles and the Global Associa�
tion of Risk Professionals IGARP).
"Yes, I feel thai all staff ar1cl
hoarcf til(}fllbers should ial<e
arivaniaqe of this course.
This cow·se has been a
refresher anc! up!iale on
rnanv of ihe concepts usee!
at i.>Oanf rneetinq level. "
- Sharon Naramore,
Contra Costa County Employees
Retirement Association
Guest Speaker
ROBERT B. REICH
UOHf I< 1 li IU I( II is one of the world's leading thinkers about work and the economy. Now Chancellor's professor of Public Policy at the University of California at Berkeley, he has served under three national administrations, most recently as Secretary of labor under Bill Clinton. He also served on President Barack Obama's economic transition advisory board. In 2008. TIME magazine named him one of the ten most successful cabinet secretaries of the past century.
Reich is the author of 15 books including The Work of Nations. which has been translated into 22 languages, and several other national best sellers. He has a reputation for seeing where politics
and the economy are going before they get there. For example, in his 2007 best seller, Supercapitalism, he warned of the perils of an under-regulated and over-leveraged financial system. In his 2010 best seller, Aftershock: The Next Economy and America's Future, he predicted a tepid
recovery that would last for years, with volatile political consequences.
In his most recent book, also a national best seller, Saving Capitalism, he foresees a widening political divide not between Democrats and Republicans but between establishment elites and anti-establishment populists in both parties.
Reich is the co-creator and host of the widely acclaimed 2013 documentary, Inequality for All, in which he explains the underlying forces that are shaping our economy and lays out pragmatic solutions for a broader prosperity.
Reich has a nationally-syndicated column and he also writes frequently for The Wall Street Journal, The New York Times and The Financial Times. He is a contributor to CNBC, and a frequent panelist on ABC's This Week and other television programs.
In late 2003, Reich was awarded the prestigious Vadev Havel prize. in Prague, for his original contributions to economic thinking. The Walt Street Journal has named him one of the nation's top ten thought leaders.
UC Berkeley Center for Executive Education I SACRS Pub!:c Pension Investment Management Program 2018 7 I
"Successful f?eiirerneni
Plan Man;n;urs recoqni/e
innovation as an
opportunity l.o rnaxirni/e
the creation of value·."
The strength of the Berkeley-Haas School of Business is expressed in its motto. 'Leading through In
novation.' Successful Retirement Plan Managers recognize innovation as an opportunity to maximize
the creation of value. This program focuses on individual, team, and organizational levels of innovative
potential.
The Public Pension Investment Management Program is carefully designed to give participants the
tools. knowledge and networks they need to master their particular challenges. Bringing perspective
from their own Retirement Plans to the program. and exposed to that of their peers. participants have
the opportunity to further define and develop their knowledge and objectives under the guidance of the
same faculty who teach in Berkeley-Haas's renowned Masters of Financial Engineering program. includ
ing top finance experts John O'Brien. Thomas Gilbert and Greg LeBlanc.
AGENDA ITEM #lOb
PRINCIPLES OF
PENSION MANAGEMENT A COURSE FOR TRUSTEES
Sponsored By
EDUCATION - COMMUNICATION - NETWORKING
California Association of Public Retirement Systems
to be held at the
The Crane, An Age-Old
Symbol Of Long Life
Pepperdine University Villa Graziadio Executive Center
August 27-30, 2018
CALIFORNIA ASSOCIATI(JN;OF P1,11JLJC RETIREMENT SYSTEMS'
CALAPRS' MISSION
/ \'::<"','\ - - - �
PRINCIPLES Of PENSION MANAGEMENT A Cc;iurse I:.or Trustees
A COURS� .FOR TRUSTEES
"CALAPRS sponsors educational forums for sharing information and exchanging ideas among Trustees and staff to enhance their ability to administer public pension benefits and manage investments consistent with their fiduciary duty."
ABOUT THE COURSE Public Pension Fund Trustees bear a heavy fiduciary burden. On a cumulative basis, California's Constitution holds our
members' 350 Trustees accountable for the stewardship of more than $450 Billion in retirement fund assets. 40 California public pension systems belong to CALAPRS. Over the past ten years, Trustees of our member retirement systems have participated in this unique training program presented exclusively for California public retirement system board members. This training focuses on the practical aspects of our Trustees' duties.
Now in its second year at the Pepperdine University Executive Center, adjacent to Pepperdine's graduate schools, CALAPRS continues to offer the same high-caliber coursework and faculty it has offered for the past twenty years on the Stanford University campus.
WHO SHOULD ATTEND? The course is for Trustees. Attendance is recommended within the first year after assuming office. Experienced Trustees will use the program as a comprehensive refresher course.
For more experienced Trustees, the Advanced Principles of Pension Management course at UCLA is suggested. This course is a pre-requisite for admission to the UCLA course.
WHY ATTEND? • To gain insight into public pension policy issues • To discuss alternative solutions to common problems • To understand the complexities involved in administering public pension plans • To appreciate the differences and similarities among California public pension plans • To network with other Trustees and pension professionals • To increase familiarity with pension terminology and concepts • To receive the ethics training required for new Trustees
FACULTY The Course will be taught by public pension practitioners, including Trustees, Consultants, Actuaries, Investment Managers, Attorneys & Administrators.
THE CURRICULUM COMMITTEE Principles of Pension Management is managed by CALAPRS' Curriculum Committee led by the course Dean: David Kehler, Retirement Administrator, Tulare County Employees' Retirement Association.
LOGISTICS California Association of Public Retirement Systems: Kerry Parker, Administrator Alison Corley, Administrator Chezka Solon, Meeting Manager
575 MARKET STREET, SUITE 2125, SAN FRANCISCO, CA 941051 P: 415.764.4860 IF: 415.764.49151 INFO@CALAPRS.ORG
CALIFORNIA ASSOCIATION OF fUBLig!{�TIREMENT SYSTEMS'
PRINCIPLES OF PENSION'MANAGEMENT A Course For:rr�stees
THE CURRICULUM Each participant must attend the full 3 days of intensive training. Sessions combine team teaching, case studies and mock board problem solving. All course materials are based on actual California public pension fund law, policies, practices and problems.
The Wednesday Evening Case Study will provide practical experience in a disability hearing. The Thursday Evening Session will consist of a 90-minute TEAM CASE STUDY to resolve significant Board of Retirement issues.
)VI_!lNDAY- AUGUST 27
6:00PM Reception & Dinner 7:30PM Pensions & Trustees- What, Who, How, Why?
TUESDAY- AUGUST 28
8:00AM What's the Big Deal About Being A Fiduciary?
5:30PM
6:30PM
How Should a Board Function?
What Benefits Do We Provide and What is the Board's Role?
What are the Key Issues in Disability Retirement? Reception & Dinner Case Study: Disability Hearing
WEDNESDAY AUGUS.L29 8:00AM How Should We Manage Our Pension Liabilities?
Investment Policy Basics
How Should We Manage Our Investment Program? 5:45PM Networking Dinner 6:30PM Case Study: Who Are Our Stakeholders and What Are Our Roles?
THURSDAY :-_�UGUST 30 8:00AM AB1234 Ethics Training for Public Fund Trustees
Course Summary 11:30 AM Certificate Luncheon and Final Course Evaluation
CERTIFICATE OF COMPLETION Participants who successfully complete the course will receive a Certificate of Completion as well as a Certificate for completion of the AB1234 Ethics in Public Service. Trustees must attend all sessions to receive a completion certificate, at the discretion of the course faculty, and attendees who do not complete the course may return the following year to make up missed sessions at no additional charge.
LOCATION & LODGING The program and lodging will be located at Villa Graziadio Executive Center, Pepperdine University, 24255 Pacific Coast Highway, Malibu, CA 90263. Lodging will be provided on campus for the nights of August 27, 28, and 29 and will be arranged by CALAPRS as part of the course for all participants. Meals will also be provided beginning with dinner on August 27 and ending with lunch on August 30.
ENROLLMENT Minimum 20, Maximum 34 Trustees.
APPLICATION & TUITION All applications must be received no later than JUNE 15.2018. Unsigned applications will be returned to the sender for signature. Accepted applicants will be notified via email the week of JUNE 18, 2018. Tuition of $3,000 (includes lodging, meals and materials) must be paid no later than AUGUST 1, 2018.
575 MARKET STREET, SUITE 2125, SAN FRANCISCO, CA 941051 P: 415.764.4860 IF: 415.764.4915IINFO@CALAPRS.ORG
CALIFORNIA ASSOCiATION OF P!!,!lLIC RET IREM ENT SYSTEMS'
PRINCIPLEs oF PEI.fs}oN MANAGEMENT A Cdurse �or Trustees EDUCATION • COMMUNICATION • NETWORKING
APPLICATION FOR ENROLLMENTZ018
APPLICATIONS WITH BOTH REQUIRED SIGNATURES MUST BE RECEIVED BY JUNE 15, 2018.
Applicants must be trustees of a California public employee pension system. Attendance is recommended within
the first year after assuming office. Experienced trustees will use the program as a comprehensive refresher course. Each system may enroll one Trustee as a "Delegate" and designate one additional Trustee as "1st Alternate"
with the remainder as "2nd Alternate". Delegates will be admitted first. If vacancies remain, 1st Alternates will be
admitted in the order received, followed by 2nd Alternates. All applicants will be notified the week of june 18.
Applicant Information
Trustee's Name (for certificate/name badge): _____________________________ _
Retirement System:_
Trustee Type: D Elected D Appointed D Ex-Officio Date Became a Trustee:, ______ Date Term Expires: _ ___ _
Trustee's Mailing Address: ____________________________________ _
Trustee's Phone:, _____________ Trustees' Email:, _____________________ _
Administrative Contact (name, email):. ________________________________ _
Emergency Contact (name, phon.,}: ___________ _ _ _ _ __ ________________ _____ ............ -........... - ........................ ______ _____ __
Dietary Restrictions (if any}: ___________________________________ _
BIOGRAPHY: Email Trustee's biog1·aphy (�150 words) to register@calaprs.org for printing in the attendee binder.
Applicant A gr eem en t
If admitted, I agree to attend the program in full and acknowledge that missing one or more sessions may result in forfeiture of my Certificate of Completion, as determined by the Faculty.
Trustee Signature (required} ______________________________ Date�: _ _ _ _
Administrator Approval
Applicant Designation: D Delegate D 1" Alternate D 2"d Alternate
Administrator Name: ____________________ Email: _ ______________ _
Administrator Signature (required}: _________________________________ _
Tuition Payment
Tuition of$3,000 must be paid in full by August 1, 2018 and includes all meals, materials, and lodging. Payable by check only (no credit cards) to "CALAPRS". This application form serves as an invoice. No additional invoice will be sent. Cancellation refunds may be provided to the extent that costs are not incurred by CALAPRS.
On campus lodging is mandatory for all participants. CALAPRS will make the reservations and payment for the nights of August 27, 28, and 29 at the Villa Graziadio Executive Center on the Pepperdine campus.
... If. due to a disability, you hove any special needs, col/ 415�764·4860 to let us L!fiJ know. We will do our best to accommodate them.
RETURN COMPLETED APPLICATION BY JUNE 15, 2018
Mail, email or fax form and payment to CALAPRS 575 Market Street, Suite 2125 San Francisco, CA 94105 Phone: 415-764-4860 Fax: 415-764-4915 register@calaprs.org www.calaprs.org
AMALGAMATED TRANSIT UNION
AFL·CIO
Ms. Maria Chavez
LOCAL265 1590 La Pradera Drive
CAMPBELL, CALIFORNIA 95008-1533
PHONE (408) 874-0900 �;.x (408) 874·0907 .
�··
June4, 2018
Human Resources - Retirement Services Santa Clara Valley Transportation Authority 3331 North First Street, Building B San Jose, CA 95134-1906
Subject: Temporary Alternate Pension Board Investment Committee Member
Dear Ms. Chavez:
AGENDA ITEM #11
1902 Charter Seal -
1bis letter is to inform you effective July I, 2018, Michael McKeon, #13353, will serve as the temporary Alternate Member for the VT N ATU Pension Board Investment Committee, until Satnarn Gill, #5468, returns to work.
Please see that all documents and notices pertaining to the Pension Board Investment Committee is forwarded to Michael McKeon.
If you have any questions, please do not hesitate to call me at (408) 874-0900, ext 214.
cc: Michael McKeon Satnam Gill
Sincerely,
�of-� TERRY L. RUSSELL President and Business Agent
AGENDA ITEM #12
,&' · Santa Clara Val ley Trans portation Authority
P1'�. · ��A_m_a�lg_a _m_a _te�d�T�ra_n_si�t�U�n�io -n�, �Lo-c�ai�2�6�5�P�e-n�si�o�n�P�Ia_n _·--�
BOARD MEMORANDUM ACTION
TO:
FROM:
ATU Board of Pensions
Sean P.Bill L /i))_ Investment Program Manager
May25,2018
DISCUSSION INFO X
SUBJECT: Repoti on SCVTA-ATU, Local265 Pension Plan Investments for the month of April2018.
FOR INFORMATION ONLY
BACKGROUND:
SCVTA-ATU, Local265 Pension funds are invested in accordance with the asset allocation strategies described in the Investment Policy amended June 10, 2014.
DISCUSSION: .
General Economic Conditions
Headline consunter prices, as measnred by the consunter price index (CPI), rose 2.5% year over year· as of April20!8. Core CPI, which excludes volatile food and energy prices increased at a rate of2.1% year over year as of April2018. The Federal Reserve continues to target an inflation rate of2.00%.
The unemployment rate in the San Jose-Snrmyvale-Santa Clara MSA was 2.4 percent in April2018,. down from a revised 2. 7 percent in March 2018, and below the year-ago estimate of 3.2 percent. This compares with an unadjusted unemployment rate of 3.8 percent for California and 3.7 percent for the nation dnring the same period.
General Market Conditions
The S&P 500 Index retnrned 0.38% in April2018. Large cap stocks retumed 0.34% and small cap stocks retnrned 0.86%. Within the large cap space, growth.stocks outperformed value stocks, retnrning 0.35% and 0.33%, respectively. The top-performing sectors were energy, consunter discretionary and health care. The worst-performing sectors were technology, producer dnrables, and consumer staples ..
The Bm·clays Aggregate index retnrned -0.74% in April2018. Investment grade corporate debt returned -0.90% and high yield retnrned +0.70%.
In global markets, the United States 1 0-year govemment bond yield ended the month at 2.95%, up from2.74 at the end of March. The Enropean 10-year government bond yield ended the month at 0.56% and the Japanese 1 0-year govermnent bond yield finished April at 0.06%.
3331 llorlh firs! llreel, Bldg. Bl • Son Jose, CA 95134·1927 • Phone 408.321.5808 ·fox 408.955.0890
SCVTA-ATU, Local 265 Pension Plan Assets
It is the policy of the SCVTA-ATU Board of Pensions to have a well-managed investment program that provides for the financial needs of the pension plan and allows the investments to be
. appropriately diversified and prudently invested to protect the safety of the principal while maintaining a reasonable retnru. Assets are invested within the following investment guidelines:
Asset Allocation ·Range Target Actual Domestic Large-Cap Value 10-20% 15% 15% .
Domestic Lai:ge-Cap Index 5-15% 10%. 10%
Domestic Small-Cap Value 5-15% .10% 10%
Int'l Equity Developed Markets 8-18% 13% 14%
Int'l Equity Emerging Markets 0-10% 5% 5%
US Core Real Estate 5-15% 10% 10%
Diversified Real Assets 0-10% 5% 5%
Domestic Fixed Income 15-30% 22% 22%
Absolute Retum 4-14% 9% 9%
Cash 0-05% 1% 0%
The SCVTA-ATU Pension Plan composite portfolio outperf01med its policy benchmark in April. 2018 by 0.13%. The current yield of the Dodge & Cox Fixed Income portfolio is 3.97% and the cuiTent effective duration is 4.62 years.
Market performance for each money manager is summarized in the following table:
Page 2 of5
Investment Performance as of April2018 I · Asset Class Fund Manager Apr 3 Mo Y-T-D I Yr 3 Yr 5 Yr 10 Yr I- T-D
Large-Cap Value Boston Partners 0.92% -5.74% -0.63% 14.35% 9.04% 12.02% 9.89% 9.68% Stocl<s Russell 1000 Value Index 0.33% -6.15% -2.52% 7.50% 7.64% 10.52% 7.30% 6.95%
Large-Cap Index !State Street o.38% 1 -5.78% 1 -o.4o% 1 13.20% 1 10.54% 12.92% I 9.02% 1 7.12% · �&P 500 Index I o.38% 1 -5.78% I -0.38% )13.26% I 10.58% )12.97% I 9.P2% I 7.03%
Smaii-Cap Value. redge 5 0.16% -4.99% �2.81% 2.11%
Stocks- · · · · - · -
Russell 2000 Value Index 1.73% -2.16% -0.95% 6.53%
nt'l Equity Dev. MFs• 2.00% -3.10% 1.01% 19.48% l\1_arkets -Growth '
MSCI AC World ex-US Growth Index 0.75% -5.07% -0.13% 17.40%
Emerging Market !State StreetEM7 I -1.49% I -7.28% o.42% 1 20.99% I MCSI World Emerging Market I -0.44% I -6.so% o.97% 1 21.n% I . US Core Real Estatc)!JBS 8 1.89% 7.08% NCREIF NFI-ODCE 2.20% 8.07%
Diversified Real 'Principal Group 2,09% -1.34% --1.34% Assets Diversified Real Assets Strategic Index 2.04% -1.50% --1.50%
Fixed Income !Dodge & Cox -0.48% -1.00% -1.47% 1.04% !sarclays US Aggregate Bond Index -0.74% -1.05% -2.19% -0.32%
Absolute Return !Lighthouse 9 0.10% -0.75% 0.74% 4.10% HFRI FoF Index 0.29% -1.72% 0.53% 5.34%
Absolute Return )Sky Bridge 9 I 1.o2% I 2.16% I 3.93% I 9.66% I HFRI FoF Index
Composite Portfolio Retums 10
IPo!icy Benchmark Returns
I 0.29% I -1.72%
I o.86% -2.53% I o.73% -2.62%
0.53% I 5.34% I
0.28% 9.61% -0.35% ! 8.17%
5 Funded April!, 2009. Prior manager was Brandywihe with the same benchmark.
8.02% 10.98%
9.27% ·10.35%
9.14% 7.81%
6.01% 6.35%
I
8.39% 9.73% 9.99% 11.43%
2.59% 2.82% 1.08% 1.47%
6.84% I 8.05% 6.16% 1 7.22%
6 Funded December 14, 2007. Prior managers were Putnam and Fidelity with MSCI EAFE as their benchmark. 7 Initially funded June 30, 2016
8.97%
8.46%
5.59%
2.76%
I I
--
4.92% 3.58%
I I
7.95% 6.05%
8 Initially funded July 1, 2010. UBS Realty Investors LLC with NCREIF NFIODCE as their benchmark. Report 45 days after quarter ended. 9Funded January 28, 2016 HlJnvestment performances by prior managers are included in composite returns and historCal policy benchmark returns.
9.94%
9.62%
5.20%
2.31%
I 21.45% 22.44%
10.71% 12.63%
5.94% 4.55%
4.05% 5.13%
I 6.53% 5.13%
8.26% 6.13%
DODGE & COX- The Fixed Income portfolio man�trut'perf6nii:ed its benchmark in April2018 by ·
0.26%. The miin contributor to relative performance was the portfolios' shorter relative duration. Security selection within credit also contributed as several holdings outperfmmed, and the portfolios' . nominal yield (ldvantage also benefited relat.\ve returns.
Page 3 of5
BOSTON PARTNERS -The Domestic Large Cap Value Equity manager outperformed its policy benchmark in April2018 by 0.59%. An overweight position and stock selection-in the energy sector and an underweight position in the consumer non-durables sector contributed to relative outperformance.
WEDGE - The Domestic Small Cap Value Equity manager underperformed its policy benchmark in April2018 by 1.57%. Stock selection in the consumer durables and basic materials sectors and an overweight position to the capital goods sector all contributed to the relative uuderperformance for the month.
·
MFS -The International Equity manager outperformed its policy benchmark in April20l8 by 1.24%. Stock selection within retail, financial services, technology, leisure together with an underweight to technology contributed to relative performance.
PRINCIPAL GROUP -The Diversified Real Asset Manager outperformed its policy benchmark in April20 18 by 0.05%. Allocations to the commodities and natural resource sectors both contributed to
. relative outperfmmance. These factors were partially offset by un-hedged foreign currency exposure.
LIGHTHOUSE- The Absolute Return manager uuderperformed its policy benchmark in April2018 by 0.19%. International equity and quantitative strategies were the primary drivers of relative uuderperformance for the month.
SKYBRIDGE-The Absolute Return manager outpeifmmed its policy benchmark by 0.73% in April 2018. Relative value and structured credit strategies both contributed to relative outperformance for the month.
A 7.00% rate of return assumption is used in the auuual actuarial analysis for the ATU Pension Plan. The results of the actuarial analysis determine VIA's auuual contribution rates. The auuual returns for the ATU Pension Plan portfolio have been equivalent to or exceeded the 7.00% assumed rate of return 11 out of 15 years.
Historic Portfolio Performance (calendar year) for the last fifteen calendar years: .
Year !Performance Year !Performance Year !Performance �003
-
121.5%. 2008 -19.7% 2013 16.5% 2004 12.2% ?009 25.7% 2014 7.2% 2005 7.2% 2010 14.0% 2015 0.5% 2006 14.5% ?.011 1.7% ?016 9.2% ?007 5.8% 2012 14.5% 2017 14.65%
Page 4 of 5
ATU Spousal Medical Trust Fund, Dental, and Vision Plan
Asset allocation for the ATU Spousal Medical Trust Fund (including funds for dental and vision plans) is provided for in the SCVTA-ATU Pension Plan Investment Policy.
Asset Allocation Domestic Fixed Income Domestic Large Cap Index Cash
Range 30-50% 50-70%
0-5%
Target 38% 60% 2%
Actual 38% 60% 2%
The ATU Spousal Medical Trust Fund composite portfolio outperformed its policy benchmark in the current month by 0.13%. The current yield for the fixed income portfolio is 3.97% and the current effective duration is 4.62 years.
Market performance for each money manager is summarized in the following table:
nvestment Performance as of Anril2018 !Asset Class !Fund Manager Anr 3Mo Y-T-D 1 Yr 3Yr 5Yr 10Yr I-T-D
Large-Can IndexiState Street 0.38% -5.78% -0.40% 13.20% 10.54%. 12.92% 9.02% 8.85% is'&P 500 Index 0.38% -5.78% -0.38% 13.26% 10.58% 12.97% 9.02% 8.85%
Fixed Income !Dodl!e & Cox -0.44% -0.97% -1.31% 1.12% 2.20% 2.52% 4.72% 4.57% Barc/ays US A!<f(l'B!<ale Bond Index -0.74% -1.05% -2.19% -0.32% 1.08% 1.47% 3.58% 3.84%
Coml'_osite Portfolio Returns o.06% I -3.98% I -0.75% I 8.93% 7.60% I 9.19% 8.20% 7.77% Policy Benchmark Returns -0.07% -3.89% I -1.03% 7.74% I 6.83% I 8.37% I 7.10% I 7.06
DODGE & COX- The Fixed Income portfolio manager outperformed its benchmark in April2018 by 0.30%. The main contributor to relative performance was the portfolios' shorter relative duration. Security selection within credit also contributed as several holdings outperformed, and the portfolios' nominal yield advantage also benefited relative returns.
Other Data
The valuation of VTA's securities is provided by Interactive Data Corporation (IDC), Men-ill Lynch · Secmities Pricing Service and Bloomberg Generic Pricing Service. These fmns are the leading
providers of global S'elfilri'ties data. They offer the largest information databases with cun·ent and historical prices on securities traded in all major markets.
This report complies with VTA's adopted investment policies. Based on budgeted revenues and expenditures as well as actual transfers to/from reserves, there are sufficient funds available to meet expenditure requirements for the six months ending October 31, 2018.
Page 5 of 5
ATU PENSION PLAN INVESTMENT PORTFOLIO PERFORMANCE MONEY MANAGERS' TOTAL MARKET RETURN- TRADE DATE
FOR THE MONTH OF APRIL 2018
SUMMARY:. April 30, 2018 Total Market Value Apr Total Market Return Total Market Return
Description
1 - VTAIATU Pension Fund-Fixed Income
2 - VTA/ATU Pension Fund-Stock Large CapValue 3 - VTA/ATU Pension Fund-State Street -Index 4 - VT A/ATU Pension Fund-Stock Small Cap Value 5 - VT AIATU Pension Fund- lnt'l - Equity Growth 6 - VTAIATU Pension Fund- Emerging Markets S. Street
7 - VTA/ATU Pension Fund- US Core Real Estate (2) 8 - VT A/ATU Pension Fund- Pricipal Group Real Assets 9 " VTA/ATU Pension Fund- Sky Bridge (2) 10- VTA/ATU Pension Fund- Lighthouse (2) 11- VTAIATU Pension Fund- Cash
Total Pension Fund
Legend:
(1) Total includes contributions I withdrawals made during current month.
(2) Performance reported quarterly.
(1) Prior
Month
126,839,998 85,850,638 57,759,758 56,131,686 74,398,012 30,129,184 53,008,857 28,320,263 24,823,631 24,480,395
3,247,907
564,990,329
Current Month
126,226,809 86,638,072 57,982,001 56,232,069 75,886,763 29,679,495 53,896,648 28,912,210 25,029,933 24,351,570
(482,921)
564,352,649
§Unrealized Gain/Loss
(613, 189) 787,434 222,243 100,383
1,488,751 (449,689)
VTA Benchmark %Unrealized Calendar Calendar
Gain/Loss YIQ YTD
-0.48% -1.47% -2.19% 0.92% -0.63% -2.52% 0.38% -0.40% -0.38% 0.16% -2.81% -0.95% 2.00% 1.01% -0.13%
-1.49% 0.42% 0.97%
ATU SPOUSAL MEDICAL PLAN INVESTMENT PORTFOLIO! PERFORMANCE
MONEY MANAGERS' TOTAL MARKET. RETURN- TRADE DATE
FOR THE MONTH OF APRIL 2018
SUMMARY: April30, 2018
Description
1 - ATU Spousal Med Fund- Dodge & Cox- Index 2- ATU Spousal Med Fund-State Street- Index 3 - ATU Spousal Med Fund-Cash
Total ATU Spousal Funds
Legend: (1) Total includes contributions /withdrawals made during current month.
·•.
Total Market Value
(1) f.rlQr Month
11,050,894 17,417,202
551,484
29,019,580
Current Month
11,001,815 17,484,218
551,226
29,037,259
'
Apr Total Market Return
�Unrealized %Unrealized Gain/Loss Gain/Loss
(49,079) -0.44% 67,016 0.38%
Total Market Return
ill Benchmark Calendar Calendar
YTD YTD
-1.31% -2.19% -0.40% -0.38%
ATU P ENSION PlAN INV ESTMENT PORTFOLIO APR!l30, 2018
BREAKDOWN BY FUND MARKE T VALUE
LIGHTHOUSE-$24,351,570
PRINCIPAL REAL ASSETS· $28,912,210
STATE STREET EM- $29,679,495
---·-·-··--------·-----·--------
- ($482,921)
-$57,982,001
MFS- $75,886,763
UBS-$53,896,648
·--------·-.. ·--·-------·---
600
580
560
540
520
500
Millions$
ATU PENSION PLAN INVESTMENT PORTFOLIO
PORTFOLIO TREND -TOTAL MARKET VALUE OF ALL MONEY MANAGERS
May-17 Jun-1T Jul-17 ' Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18
8.00%
7.00%
6.00%
$.00%
4.00%
3.00%
2.00%
1.00%
0.00%
�1.00% Apr-17
-2.00%
-3.00%
-4.00%
-5.00%
-6.00%
-7.00%
-8.00%
-9.00%
Historical Retums
Santa Clara Valley Transportation Authority ATU MONEY MANAGERS Performance
Portfolio Monthly Review- ATU Composite vs. Benchmarks
May-17 Jun-17 Jul-17 . Aug-17
YTD Geometric May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 2018 Annualized lTD
MONTHLY PERFORMANCE DATA
ATU 1.13% 0.78% 1.32% 0.25% 1.71% 1.48% 1.20% 1.09% 2.88% -2.77% -0.61% 0.86% 0.28% 8.26%
BENCHMARK 1.00% 0.74% 1.49% 0.23% 1.54% 1.03%, 1.24% 0.97% 2.34% -2.86% -0.48% 0.73o/; -0.35% 6.13% .
INVESTMENT OBJECTIVE OF VTA!ATU MONEY MANAGERS IS TO OUTPERFORM BROAD MARKET BENCHMARKS, NET OF FEES.
STARTING JANUARY 2010 THE COMPOSITE BENCHMARK CALCULATION WILL BE BASED ON THE INVESTMENT POLICY TARGET ALLOCATION
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
-200% May-17
--4.00%
-6.00%
-8.00%
-10.00%
-12.00%
-14.00%
-16.00%
-18.00%
Historical Returns
MONTHLY PERFORMANCE C
Boston
Russell 1000 Value
Santa Clara Valley Transportation Authority BOSTON PARTNERS Performance
ATU PENSION LARGE- CAP VALUE Money Manager vs. Benchmark
May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18
0.31% 2.17% 1.42% 0.21% 3.14% 1.98% 2.91% 2.06% 5.43%
-0.10% 1.63% 1.33% "1.16% 2.96% 0.73% 3.06% 1.46% 3.87%
Feb-18 Mar-18 Apr-18
-4.13% -2.58% 0.92%
-4.78% -1.76% 0.33%
YTD Geometric 2018 · <\nnualized lTD
-0.63% 9.68%
-2.52% 6.95%
INVESTMENT OBJECTIVE OF DOMESTIC LARGE CAP VALUE EQUITY MANAGER IS TO OUTPERFORM BROAD MARKET (BENCHMARK), NET OF FEES. EFFECTIVED JULY 2006, RUSSELL 1000 VALUE REPLACED S and P 500 BARRANALUE.
Funded Equity Money Managers- Sept. 4, 1998
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
-2.00%
-4.00%
-6.00%
-8.00%
-10.00%
-12.00%
Historical Returns
Santa Clara Valley Transportation Authority STATE STREET GLOBAL ADVISORS Performance
ATU PENSION LARGE- CAP INDEX Money Manager vs. Benchmark
May-17 Jun-17 Jul-17 Aug-17
May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 , Feb-18
MONTHLY PERFORMANCE DATA State Street 1.39% 0.63% 2.05% 0.30% 2.06% 2.33% 3.06% 1.11% .5.71% -3.69%
S&P 500 1.41% 0.62% 2.06% 0.31% 2.06% 2.33% 3.07% 1.11% 5.73% -3.69%
m. State Street
a Benchmark
Mar-18 Apr-18,
-2.54% 0.38%
-2.54% 0.38%,
Apr-18
YTD Geometric 2018 �nnualized lTD
-0.40% 7.12%
-0.38% 7.03%
INVESTMENT OBJECTIVE OF DOMESTIC LARGE CAP VALUE INDEX MANAGER IS TO MIMIC THE BROAD MARKET PERFORMANCE OF Sand P 500.
Funded Equity Money Managers- Sept. 4, 1998
16.00%.
12.00%
8.000/c
4.00%
0.00%
-4.00%
-8.00%
-12.00%
-16.00%
-20.00%
Historical Returns
MONTHLY PERFORMANCE DATA WEDGE
Russell 2000 Value
Santa Clara Valley Transportation Authority WEDGE Performance
ATU PENSION SMALL- CAP VALUE Money Manager vs. Benchmark
Jul-17 Dec-17
"WEDGE
• Benchmark
May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct�17 Nov-17 Dec-17 Jan-18
-2.48% 2.09% -0.08% -3.22% 6.84% 1.17% 1.72% -0.75% 2.30%
-3.11% 3.50% 0.63% -2.46% 7.08% 0.13% 2.89% -0.95% 1.23%
YTD Geometric Feb-18 Mar-18 Apr-18 2018 �nnualized lTD
-6.00% 0.91% 0.16% -2.81% 9.94%
-5.00% 1.24% 1.73% -0.95% 9.62%
INVESTMENT OBJECTIVE OF DOMESTIC SMALL CAP VALUE EQUITY MANAGER IS TO OUTPERFORM BROAD MARKET- RUSSELL 2000 VALUE, NET OF FEES.
Funded Brandywine- Sept. 1998 Funded WEDGE April 2009
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
-2.00%
-4.00%
-6.00%
-8.00%
-10.00%
-12.00%
-14.00%
-16.00%
-18.00%
-20.00%
-22.00%
May-17
Santa Clara Valley Transportation Authority MFS Performance
ATU PENSION INTERNATIONAL EQUITY Money Manager vs. Benchmark
Jun-17
"MFS
lllll Benchmark
Historical Returns YTD Geometric May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18· 2018 mualized lTD
MONTHLY PERFORMANCE [ 5.68% 0.30% 1.92% 1.10% "2.04% 2.89% 1.16% 1.97% 4.24% -4.23% -0.80% 2.00% MFS
1.01%
MSCI AC World 4.45% 0.08% 3.46% 1.00% 1.75% 2.40% 1.10% 2.16% 521% -4.47% -1.37% 0.75% -0.13%
INVESTMENT OBJECTIVE OF INTL. EQUITY MANAGER IS TO OUTPERFORM THE BROAD MARKET PERFORMANCE OF MSCI EAFE INDEX, NET OF FEES. Funded Putnam Equity Index- May 2000 Funded Pyramis Equity Index - Febnuary 2004 Funded MFS Equity Index - D ecember 14, 2007
5.20%
2.31%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
-2.00%
-4.00%
-6.00%
-8.00%
-10.00%
-12.00%
-14.00%
-16.00%
-18.00%
Historical Returns
State Street EM
Emerging Mari<et
·Santa Clara Valley Transportation Authority STATE STREET EM Performance
ATU PENSION Money Manager vs. Benchmark
May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17
YTD Geometric
May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 2018 Ialized lTD
.2.92% 1.03% 5.93% 2.28% -0.43% 3.40% 0.42% 3.44% 8.30% -5.24% -0.67% -1.49% 0.42% 21.45%
2.96% 1.01% 5.96% 2.23% -0.40% 3.51% 0.20% 3.59% 8.33% -4.61% -1.86% -0.44% 0.97% 22.44%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00"/o May-17
-1.00%
-2.00%
-3.00"/o
Historical Returns
MONTHLY PERFORMANCE DATA
Dodge & Cox
Barclays Capital US Aggregate
Santa Clara Valley Transportation Authority DODGE & COX Performance
ATU PENSION FIXED INCOME Money Manager vs. Benchmark
Oct-17 Nov-17
May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18
0.75% 0.07% 0.75% 0.56% -0.07% 0.12% -0.07% 0.42% -0.48%
0.77% -0.10% 0.43% 0.90% -0.48% 0.06% -0.13% 0.46% -1.15%
Ell Dodge&Cox II Benchmark
YTD Geometr'1c Feb-18 Mar-18 Apr-18 2018 Annualized lTD
-0.72% 0.20% -0.48% -1.47% 5.94%
-0.95% 0.64% -0.74% -2.19% 4.55%
INVESTMENT OBJECTIVE OF DOMESTIC FIXED INCOME (PENSION) MANAGER IS TO OUTPERFORM BROAD MARKET (BARCLAYS AGGREGATE BOND INDEX), NET OF FEES ..
Funded Fixed Income Money Managers -Oct. 1, 1998
Historical Returns
Lighthouse
HFRI-FOF
Santa Clara Valley Transportation Authority LIGHTHOUSE Performance
ATU PENSION Money Manager vs. Benchmark
YTD Geometric May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 2018 Annualized lTD
0.23% 0.27% 0.65% 0.35% 0.10% 1.40% -0.30% 0.60% 1.50% -0.25% -0.60% 0.10% 0.74% 4.05%
0.32% -0.02% 1.02% 0.83% 0.44% 1.15% -0.02% 0.92% 2.33% -1.55% -0.46% 0.29% 0.53% 5.13%
-4.00%
Historical Returns
Sky Bridge
HFRI-FOF
Santa Clara Valley Transportation Authority SKY BRIDGE Performance
ATU PENSION Money Manager vs. Benchmark
May-17 Jun-17 Jul-17 Aug-17 Sepc17 Oct-17 Nov-17 Dec-17 Jan-18
0.28% 0.40% 0.88% 0.49% 0.99% 1.04% 0.40% 0.91% 1.73%
0.32% -0.02% 1.02% 0.83% 0.44% 1.15% -0.02% 0.92% 2.33%
YTD Geometric Feb-18 Mar-18 Apr-18 2018 Annualized lTD
.
0.83% 0.30% 1.02% 3.93% 6.53%
-1.55% -0.46% 0.29% 0.53% 5.13%
Name of course- --- .. Ethics Training Completion Date .. .. *Hours Required Every Two Years Saltzman & Johnson Law Corporation-Fiduciary Duties of a Member of the Board of Pensions: Training Module No. Four: Investment Issues NEPC 2018 Public Funds Workshop NEPC Qrtly Report NEPC Themes & Opportunities Presentation Lighthouse Presentation The Pension Bridge Conference Wedge Capital Management Outlook NEPC Qrtly Report NEPC Annual Investment Conference CALAPRS Trustees' Roundtable
Hours Completed· Calendar Year 2018 ·· • · . Hours Completed· Calendar Year 2017 . . ·
Course Date
Jan. 9, 2018
Jan. 21·23, 2018
. ·· .
February 13, 2018
March 13, 2018
April9, 2018
April 10·11, 2018
May 1, 2018
MayS, 2018
May 14·15, 2018
June 8, 2018
···. > . .. .. ..............
.. . .. ·· ·
·
Satnam Gill 2/17/2017
36
0.37
0.45
0.6
0.58
16
0.42
0.57
. • 18.99 •. ··•••·
..···. 62.50 . ...
SCVTA-ATU, Local 265 Pension Plan
Board of Pensions
Education Policy Compliance Report
January 1, 2018 through December 31, 2018
AliHudda Ted Kraynick Jerry Rosencjulst TerrY Russell 11/16/2016 12/3/2016 11/20/2016 2/22/2017
36 36 36 36
0.37 0.37 0.37 0.37
12
0.45 0.45 0.45
0.6 0.6 0.6 0.27
0.58 0.58 0.58
16 16
0.42 0.42 0.42
0.57 0.57
15
6 6
'
24.42 7.84 .
..•. •··••·• 18.12 ····. 29.65. I•· 19,63 . •. 6L79 . • < . . · . 53.11 .··.· • . . . · 82.74 •..•.•
*All Board Members and Alternate Members Will rece1ve a mm1mum of 36 hours of education every two years.
Raj Srlnath 11/16/2016
36
0.37
0.45
0.6
0.58
0.42
0.57
15
17.99 •. •
18,92
Sylvester Fadal 11/16/2016
36
0.37
0.45
0.6
0.58
0.57
15
. .. 17;57 54.40
Khryshtal Hammell
. . .
11/1/2016 .•. 36
0.37
0.45
0.57
15
16.39
. .••..•... 31.47 . . .· .· .
AGENDA ITEM #13
Michael McKeon 6/7/2017
36
0.37
0.45
0.6
0.58
16
0.57
6
•. ·>24;57 ... . · . . .. · . .•. 88.35
. .
Grace Ragni 11/28/2016
36
0.37
12
0.45
0.6
0.58
0.57
•· 14.57 •· . 37.27
Updated as of 12/1/2017
Retirement
Name ld# Date
Baraona, James 1397 4/1/2018 Dolgonosov, Boris 10410 4/9/2018 Jarosz, Richard 8099 4/1/2018 Najera, Ronnie 1 1341 3/30/2018 Smith, Oliver 12253 4/1/2018 Bonilla-Pfeiffer, Joseph 2867 1/1/2018 Butler, Theron 3378 5/1/2018
Page 1
Final Benefit Calculations Report Supplement ATUPending
RelJremem Services Received
Date Final Payoff Approved Information
4/9/2018 4/9/2018 4/9/2018 I
4/9/2018 4/9/2018 5/8/2018 5/8/2018
Status
.
AGENDA ITEM #14
Retirement Services 6/5/2018
Pers.No.
AGENDA ITEM #15
Separated Employees' Distribution of Contributions Report as of June 1, 2018
Ke1moursement Amount
Last·name First name Initial Hire Date Separation Date Sent Reimbursed
No Distributions Issued in May. '·
Total Reimbursed $
Page 1 Retirement Services 6/4/2018
New Complete
Board of Pensions
Workplan
Board & Committee Items Benefit Issues
Retiree Dental Benefits (Delta Dental contract expires 8/31120 I 9)
Contracted Services
Cheiron - Annual Actuarial ValuaTion (ER Rate FY 2019) Actuarial Audit RFP - Selection of Firm Cheiron - Spousal Medical Fund and Retiree Vision/Dental Fund Valuation(As ofJanuoryl,2018) ·
Continuous
Quarterly Budget Review Monthlylnvestrnent Renort Monthly Investment CommitteeReoort �usa! Medical Fund _Quarterly Report Retiree Vision/Dental Fund Quarterly Report NEPC Quarterly Investment Performance Analysis!NEPC Training Audited Financial Statements (FY 2018)
Misce1Ianeous & Ono-oinl!
Investor Protection & Securities Monitoring Services Final Benefit Payments Separated Employees' Distribution of Contributions Retiree/Beneficiary Reimbursement Payments Annual fuoousal Medical Fund Certification (20 I 8) Annual Social Security Earnings Verification (20 I 6) Elect Chairperson & Vice-Chairperson Eff I/19 Educiltion Policy Compliance Report
Policies/Procedures
Implementation of the Califonria Public Employees' Pension Reform Act
Disputes Under Section 2.4 Of the Pension Plan Procedure
Un-Retiring ATU Retirees After Board of Pensions Approval
Medical Re-Evaluations - Must be resolved during contract negotiations
Responsibility
Russell
Schmidt Hudda
Schmidt
Chavez Bill Hudda Hudda Hudda Bill Hudda
Hudda Chavez Chavez Chavez Chavez Chavez
Chavez
Pension Plan Policies Sub-Committee Pension Plan Policies Sub�Committee PensiOn Plan Pohe1es Sub-Committee PensiOn Plan Policies Sub-Committee
Retirement Services
"' ;a
I I
I
I
I
AGENDA ITEM #17
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A= Approve/Appoint
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6/5/2018
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