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INTERNATIONAL MANAGER REVIEW - Asset Consulting: Jason Pulos reviewed the six candidates that he recommended for replacement of The Boston Co. The companies were Alliance Bernstein, L.P, Batterymarch Financial Management, Inc., Julius Baer Investment Management, Pictet Asset Management Ltd., State Street Global Advisors and Thornburg Investment Management. Each of these firms was reviewed. Discussion ensued as to whether to hire one manager or two complementary managers.
After a thorough discussion of each of these companies, Mr. Hole made a motion to remove the portfolio from The Boston Co. and replace them with Thornburg Investment Management and Julius Baer Investment Management. Mr. Fortunato seconded the motion. The motion was approved UNANIMOUSLY by the Board.
Investment Program Review - Asset Consulting: Jason Pulos gave an overview of the portfolio and an asset allocation analysis of the equities, fixed income and real assets. He reviewed the components of the equity allocation and recommended that the trustees consider hedged equity as a component of the portfolio. He showed how hedge fund strategies could lower risk in the portfolio. He also advised that equity long/short strategies generally outperform in modestly appreciating markets. Equity long/short strategies underperform in significant market rallies. This strategy would provide support in declining market environments and participate in market appreciation.
Mr. Pulos reviewed not only hedge fund strategies, but also the issues and considerations. His recommendation was to invest in a Fund of Funds that would allocate to several managers with different type of hedge fund strategies. He further recommended using January, 2008 as a target date to start looking at companies. Additionally, he suggested the trustees have two fund managers come to a meeting for additional education with a target date of the November meeting. One manager to be scheduled at 2:30 P.M. and the second manager at 3:00 P.M. Chairman Curry thanked Mr. Pulos for his informational review.
Northern Trust Bill of 3/31/07: This bill in the amount of $47,957.86 had been reviewed and approved by the administrator. After discussion, Mr. Hole made a motion to approve payment of this bill with Mr. Dew seconding the motion. The motion was approved UNANIMOUSLY by the Board.
FOR YOUR INFORMATION: No action.
Mr. Dew made a motion to adjourn at 4:45 P.M. with Mr. Kemp seconding the motion. The motion was approved UNANIMOUSLY by the Board.
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Chairman Secretary
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