Members Present:

Member Excused:

Staff Present:

The meeting of the Board of Trustees of The Anne Arundel County Retirement and Pension System (Board) was called to order at 12:27 p.m. by Chairman John Hammond.

Minutes

• Mr. Wilkison submitted several amendments to the March 2007 minutes, after which the Board moved, seconded, and approved the minutes from February 8, 2007 and March 8, 2007 unanimously.

Investment Committee

• Grey Perkins and Marie Bishko were in attendance and represented Mariner, which is a registered Investment Adviser founded in 1992 by William J. Michael check. The firm focuses on superior risk-adjusted returns, low volatility, low correlation to stock and bond markets, and seeks consistent alpha generation while preserving capital. The Firm has 15 senior investment professionals dedicated to their fund of funds business with an average of 23 years proprietary trading and hedge fund experience.  Currently the company has approximately $11.4 billion in assets under management with over $3.2 billion in Hedge Fund of Funds. The Mariner representatives distributed their portfolio and discussed their performance and strategies. 

• Two representatives from K2 Advisors were in attendance and distributed the company’s portfolio and discussed their performances and strategies. K2 increased its staff by 23% from 52 to 64 employees. The Firm’s assets under management increased from $4.2 billion to $5.5 billion. K2 is now registered by the U.S. SEC, CFTC, NFA and London FSA and has entered a strategic partnership with TA Associates.

• Mr. Hammond stated that an Investment Committee (hereafter known as the Committee) meeting was held earlier and talked to managers on the private equity side.  The Committee met with Quellos Group and is recommending the Board subscribe to their Fund No. 3 in the amount of $10 million.  The Committee also met with New Stone Capital Partners, who are in the Mezzanine Space, and is recommending that the Board subscribe $5 million into their Fund.           

Mr. Callahan made a motion to open discussion on the matter and Mr. Calloway seconded the motion.  The Board discussed the origin of the funds being generated as well as the commitments that are currently in place.           

The Board voted unanimously to allocate the funds mentioned above.

Mr. Hammond stated that the next Committee meeting would be held the first week in May 2007.

• Rhett Humphries of New England Pension Consultants (NEPC) distributed and discussed the first quarter performance and private equity recommendations.

• Mr. Thomas Lowman and Mr. David Ballard were in attendance and representing Bolton Partners, Inc.  Mr. Ballard provided and distributed actuarial valuation as of January 1, 2007 for the Employees’, Fire Service, Police Service, and the Detention Officers’ and Deputy Sheriffs’ Retirement Plans.  The findings of the valuation for each group will lend credence for the monetary funding of the Pension Fund in the FY ‘08 Budget.

A motion was made, seconded, and unanimously carried forward to recommend an additional $36, 927,321 to the County Budget to fund the monthly Pension benefits for fiscal year 2008.

It is noted that Andrea Fulton, Secretary to the Board and Personnel Officer of Anne Arundel County will provide the letter stating how much the Board of Trustees of the Anne Arundel County Retirement and Pension System approved as proposed employer contribution amounts for the Fiscal Year 2008 budget.

Administrative Report

• Mrs. Lohn acknowledged the strong work relationship between Bolton Partners and Tina Johnson and Cheryl Wyngarden (Pension Analysts for Anne Arundel County).

  Mrs. Lohn announced the DROP pension calculation are not available on-line and plans are being made for enhancement by Bolton Partners.

• An investigation was launched regarding possible fraud of a Work Related Disability Retirement.  It was determined during several independent medical evaluations that the Retiree, in-fact, could not return to work.          

• Tina Johnson mailed 160 income verifications requests to disabled retirees as required by County Code.

• The Benefits Section is in the middle of a pension audit, preparation is going forward for the annual pension benefits statements, the Pension Points newsletter is being drafted and will be distributed with the draft of the April 2007 Board minutes.

• Mr. Wilkison questioned if the Public Safety Benefit payout issue for surviving spouses paid by Prudential had been solved. Mrs. Lohn responded that the matter is before the Law Office and it would take another six weeks to review the issue.

Other Business

• None

The meeting adjourned at 2:35 p.m. The next meeting is scheduled for May 10, 2007 @ 12:00 p.m.