VLCT Joint Investment Committee Meeting
Friday, September 14, 2018
VLCT Offices Montpelier, Vermont
Committee Members Present:
PACIF Carl Rogers, John Lawe, Jerry Storey, Jackie Higgins
VERB Bill Shepeluk, Todd Odit
VLCT Brendan Whittaker
Staff Present: Joe Damiata, David Sichel, Jeremiah Breer, Maura Carroll
Others Present: John Mohr (Strategic Assets Advisors (SAA)), Amanda Abdella and Jason Bilodeau (Standish)
Chairman Lawe called the meeting to order at 10:01 am.
Upon motion (Rogers/Higgins) duly adopted, the Committee voted unanimously to approve the agenda.
Upon motion (Higgins/Storey) duly adopted, the Committee voted unanimously to approve the minutes of the January 26, 2018 meeting as presented.
John Mohr from SAA reviewed the trusts' investment performance during the first half of 2018. Total returns through the second quarter, net of fees, were -1.51% for PACIF and -1.00% for VERB.
Jason Bilodeau and Amanda Abdella reviewed the fixed income portfolio performance for the period January-July, 2018. They also reviewed Standish's investment outlook and current fixed income selection philosophy.
John Mohr presented a review of PACIF and VERB’s asset allocations. Two alternative asset allocations for PACIF were discussed. Option one kept the allocation to risk assets the same as the current allocation with changes to the asset classes. Option two reduced the risk asset allocation from 50% of Net Position to 40%. These options were discussed in detail.
Upon motion (Odit/Shepeluk) duly adopted, the Committee voted 6-0-1 (John Lawe abstained) to recommend that the PACIF Board consider adoption of option 2.
John Mohr reviewed proposed changes to the PACIF and VERB Investment Policies. The changes relate to municipal and Yankee bonds. Also proposed was allowing bank loans to be included in the PACIF risk asset portfolio.
Upon motion (Shepeluk/Rogers) duly adopted, the Committee voted unanimously, to recommend adoption of the proposed Investment Policy amendments to the PACIF and VERB boards.
Upon motion (Storey/Shepeluk) duly adopted, the Committee voted unanimously to adjourn the meeting at 12:51 p.m.