I T E M I I A P a g e 1. Clayton Erickson Gary O Neal Capt. Steven Sack Patricia Washington Thomas Wright. A. Regular Board Minutes of March 27, 2014.

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1 I T E M I I A P a g e 1 St. Louis County Retirement Board of Trustees Meeting Thursday, April 24, :30 a.m. 8th Floor Conference Room 41 South Central Ave. Clayton, MO Meeting Called by: Type of Meeting: Note Taker: Members Present: Members Absent: Kirk McCarley, Retirement Plans Administrator Board of Trustees Regular Monthly Meeting Sharon Jones Thomas Curran Clayton Erickson Gary O Neal Capt. Steven Sack Patricia Washington Thomas Wright Milton Wilkins Others Present: St. Louis County: Consultants: Guests: Maggie Hart-Mahon, County Counselor s Office Dan Holmes, Summit Strategies None II. APPROVAL OF MINUTES A. Regular Board Minutes of March 27, There being no changes or corrections offered for the minutes, Clayton Erickson made the motion to accept the Board Minutes as presented. Tom Curran seconded the motion; unanimously approved. B. Investment Committee Minutes of March 27, There being no changes or corrections offered for the minutes, Tom Curran made the motion to accept the Board Minutes as presented. Steven Sack seconded the motion; unanimously approved.

2 I T E M I I A P a g e 2 III. REQUESTS FOR BENEFITS A. Employees Requesting Retirement Benefits 1. Twelve Civilian Requests There being no unusual circumstances regarding these requests, a motion was made to accept the Plan A Civilian Requests for Retirement by Tom Wright, seconded by Clayton Erickson, and unanimously approved. 2. Two Police Requests There being no unusual circumstances regarding these requests, a motion was made to accept the Plan B Police Requests for Retirement by Steven Sack, seconded by Tom Curran, and unanimously approved. B. Beneficiary s Applications for Death Benefits 1. Eight Civilian Requests There being no unusual circumstances regarding these requests, a motion was made to accept the Plan A Civilian Application for Death Benefits by Tom Wright, seconded by Tom Curran, and unanimously approved. 2. No Police Requests IV. FINANCIAL REPORTS A. Retirement Fund Balance Sheet from the Division of Fiscal Management ( / packet) $589,907,772 B. Jennison Associates LLC Account Reporting Package ( ) C. OakBrook Investments St. Louis County enhanced S & P 500 Index ( ) D. LSV (NA) E. Gryphon International Portfolio Performance (NA) F. Aronson + Johnson + Ortiz Portfolio ( ) G. RREEF America REIT II (NA) H. Summit Strategies Group (agenda packet) Economic & Capital Market Update Preliminary Flash Report March 31, 2014 I. Sanderson Asset Management Performance Statement / Northern Trust ( ) Northern Trust Performance Statement Sanderson Performance

3 I T E M I I A P a g e 3 J. William Blair (NA) K. Heitman (NA) L. Titan Advisors Titan Monthly Report Titan Allocation Report Titan Investor Statement Titan Advisors There being no changes or corrections offered for the Manager Reports, Tom Wright made the motion to accept the reports. Tom Curran seconded the motion; unanimously approved. V. HEAR VISITORS None VI. MANAGER PRESENTATIONS Western Asset Management, Michael Komori, CFA Director, Portfolio Specialist Western Asset Management is part of Legg Mason Institutional Services. They are a global management firm committed to understanding the needs of each client, identifying investment solutions and delivering superior long-term investment results. Their investment philosophy involves a long-term, fundamental value discipline. They first work bottom-up, then top-down. There are eight offices around the globe. They have a total staff of 839 employees, and have $468.7 Billion under management. Clayton Erickson said that investment with Western Asset Management is an investment with a bond manager and is looked at as a safety net, insurance policy, and a balanced approach to investing. Our fund uses fixed income as a steadying basis. The product is designed to tract the bench mark, not supposed or expected to make tons of money for the fund. As a public fund we are conservative with this part of our investments. Michael said they believe their firm should out-perform the bench mark by 1.5%. He said they do not intend to swing for the fences but do want to provide a strong low risk investment. Two percent of the fund is allocated to TIPs. Michael explained that they are value investors and use a team approach. There is a portfolio management team and a risk management team that work together to insure good investments. He said that currently our fund is overweight in the financial sector and underweight in the utility sector. The fund is balanced in the industrial sector. Their forecast is +2-3% for the year and that is also their goal. Dan Holmes asked when the investors move from TIPs to investment grade and vice versa. Michael said this is sometimes hard to judge but involves a good deal of discussion and consideration by the investment teams.

4 I T E M I I A P a g e 4 VII. OTHER BUSINESS A. Update on the Actuarial RFP. This will be sent out May 19. Tom Wright asked what we pay BUCK Consultants each year. Kirk McCarley said the contract was for around $42,000, and we pay $70 for every calculation that exceeds 150. The total each year is around $60,000. Clayton Erickson said that this seems like a very good deal. Gary O Neal asked if the County is happy with BUCK Consultants. Tom Wright said that we are but the Board needs to request additional actuary bids as part of the due diligence required of the Board. B. Trade Error Notification from Jennison Jennison put in a trade order for all Goldman Sachs holdings to be reduced to 1% instead of the 1.5% current holdings. In ten portfolios this did not happen; the County s portfolio was one of the ten. The trades were made the next day and the difference was $997.73; Jennison is refunding this amount to our account. C. Notice to Charlie Dooley of IronBridge termination and hiring of Granite Investment and London Company of Virginia. Kirk McCarley said this request has been sent to the County Council so the process is moving forward on this decision made by the Retirement Board. D. State Street Outstanding Balance The County owed State Street $3,540 for process fees of closing the Penn Capital investment. However, State Street continued to charge the County $300 each month for custodial fees after Penn Capital had been terminated. State Street has waived the $300 fees but still wants the process fees for the closing. Kirk shared some statistics on our retirees provided by Sue Kane in the Retirement and Benefits Office. One retiree, Odon Moehle is 103, and will have collected a retirement from the County for 41 years. He retired 8/1/1973. Nokomis Coulter retired 8/1/1977 and he is 96 years old. The average monthly benefit pay for 2,099 civilian retirees is $1, The average monthly benefit pay for 440 police retirees is $2, VIII. CORRESPONDENCE A. Aronson+Johnson+Ortiz Domestic and Global Brochures (Form ADV, Part 2), Erisa 408 (b) (2) Disclosures B. OakBrook Investments LLC Form ADV part 1 and 2 C. Gryphon 2013 Audited Financial Statements D. Sanderson Form 5500 Schedule C Fee Information and Section 408 9b) (2) Disclosure

5 I T E M I I A P a g e 5 E. IRM client Privacy Notice, Form ADV part 2A, and Brochure IX. PRESENTATION A. Summit Strategies Dan Holmes (Please see hand-outs) The economy finally seems to be expanding. Dan explained that the bad weather the whole country had been experiencing at the beginning of the year is thought to have been a major contributor to the marked slowdown in the economy. Hopefully, with better weather in sight, the economy will start to grow. The yield curve rose basis points. The strong returns for US equities are currently rotating into the emerging markets sector. March reversed the lag in the emerging markets of the previous two months. Fixed Income was down 1.8% for the quarter. Tom Wright asked what the fees were for Western Asset Management. Dan said since we are in a fund, the fees are netted out so they are in the amounts we see in their reports. Clayton Erickson asked what happened to cause the lower returns from Jennison. Dan used the consultant technical term that Jennison got creamed in March primarily due to the sell-off of their technology stocks. For the first quarter the portfolio was up 1.8%. The portfolio continues to out-perform the bench mark over a five and ten year period. The US equity portfolio was up 1.8%. The international portfolio was up almost 1%. Fixed Income was up 2.5%. Real Estate is up 2.7%. IronBridge is still managing for us until the contracts are completed with Granite and London Company of Virginia. X. NEXT MEETING Thursday, May 29, 2014, 8 th Floor Conference Room. 9:30 a.m Retirement Board Meeting XI. ADJOURNMENT Tom Curran made the motion to adjourn the Retirement Board Meeting. Clayton Erickson seconded the motion; unanimously approved by the board. Thomas Wright, Chairman