BOARD OF ADMINISTRATION

OF THE

WATER AND POWER EMPLOYEES’ RETIREMENT PLAN

 

REGULAR MEETING AGENDA

 

NOVEMBER 8, 2017 – 9:00 A.M.

 

ROOM 1555-H, 111 NORTH HOPE STREET, LOS ANGELES, CA 90012

 

A meeting of the Retirement Board will be held on November 8, 2017, convening at 9:00 a.m. or soon thereafter if quorum is present.

 

As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and, upon request, will provide reasonable accommodation to ensure equal access to its programs, services, and activities. To ensure availability, such request should be made 72 hours in advance by contacting the Retirement Office at (213) 367-1712 during business hours.

 


At the beginning of the meeting, the Board will provide an opportunity for members of the public to address it on items of interest that are within the subject matter jurisdiction of the Board. Thereafter, the Board will consider and take action on the Regular Agenda items. Members of the public may also request to speak on any agenda item. The meeting is recorded.

 


PUBLIC COMMENTS

 

CONSENT (Approval of routine, non-controversial items; action taken on entire consent agenda and treated as separate vote on each)

Reso

 

 

 

1.

Approval of Minutes

a)  September 13, 2017 Regular Meeting

b)  September 28, 2017 Special Meeting

 

 

18-34

18-35

18-36

 

2.

a)  Termination of Monthly Allowance from the September 2017 Retirement Roll

b)  Termination of Monthly Allowance from the October 2017 Retirement Roll

c)  Termination of Dale G. Bronson from November 2017 Permanent Total Disability Roll

 

 

RECEIVED AND FILED (Items of Interest to the Board on which no action is taken)

 

 

 

3.

Report of Payment Authorizations

a)  August 2017

b)  September 2017

 

 

 

4.

Notice of Deaths

a)  August 2017

b)  September 2017

 

 

 

5.

Investment Reports for August 2017

a)      Summary of Investment Returns as of August 31, 2017

b)      Market Value of Investments by Fund and Month as of August 31, 2017

c) Market Value of the Retirement, Death, and Disability Funds and Retiree Health Care Fund as of August 31, 2017

 

 

6.

Investment Reports for September 2017

a)      Summary of Investment Returns as of September 30, 2017

b)      Market Value of Investments by Fund and Month as of September 30, 2017

c)  Market Value of the Retirement, Death, and Disability Funds and Retiree Health Care Fund as of September 30, 2017

 

 

 

7.

Summary of Contract Expirations

 

 

 

8.

Report of Status of Insurance as of October 25, 2017

 

 

 

9.

Articles of Interest

a)  Investment Industry Article – Institutional Investor, Dated October 25, 2017

b)  Investment Industry Article – Bloomberg News, Dated October 24, 2017

c)  Investment Industry Article – ThinkProgress News, Dated October 19, 2017

 

 

 

10

Retirement Plan Office 2018 Annual Schedules

a)      Board of Administration of the Water and Power Employees’ Retirement Plan – 2018 Schedule of Regular Meetings

b)      Board of Administration of the Water and Power Employees’ Retirement Plan – 2018 Manager       Presentation Schedule

c)  Water and Power Employees’ Retirement Plan – 2018 Calendar of Retirement Seminars

d)      Water and Power Employees’ Retirement Plan – 2018 Calendar of Retirement Deadlines

 

 

 

11.

Report on T. Rowe Price Associates – On-Site Due Diligence Visit

 

 

 

12.

Annual Presentation by Blackrock Institutional Trust Company – International Developed Passive Equity Manager

 

 

 

13.

Annual Presentation by FIAM, LLC – International Developed Growth Equity Manager

 

 

 

14.

Annual Presentation by MFS Institutional Advisors – International Developed Value Equity Manager

 

 

 

15.

Annual Presentation by GAM – Hedge Fund of Funds Manager

 

 

 

16.

Annual Presentation by Morgan Stanley AIP – Hedge Fund of Funds Manager

 

 

 

17.

Presentation by Courtland Partners – 2017 Second Quarter Real Estate Portfolio Performance Report

 

 

 

18.

Presentation by RVK, Inc. – 2017 Second Quarter Portfolio Performance Report

 

 

 

19.

Presentation by RVK, Inc. – 2017 Second Quarter Real Return Portfolio Performance Report

 

 

REGULAR (Items for discussion and action by the Board)

 

 

Reso

 

 

 

20.

Annual Audit Report and Related Financial Statements of the Water and Power Employees’ Retirement Plan as of June 30, 2017, as Presented at the Audit Committee Meeting on October 25, 2017

 

 

18-37

21.

Discussion of the Guidelines for the Election of Active Member Representatives to the Board of Administration of the Water and Power Employees’ Retirement Plan; and Possible Action

 

 

18-38

22.

Discussion of Contract with Fred Alger Management, Inc., Large-Cap Growth Equity; and Possible Action

 

 

18-39

23.

Discussion of Emerging Manager Program; and Possible Action

 

 

18-40

24.

Discussion of the Interim Asset Allocation Targets; and Possible Action

 

 

18-41

25.

Discussion of Proposed Global Equity Asset Class Restructure; and Possible Action

 

 

 

26.

Discussion of Report on AB2833 Compliance – Hedge Funds/Private Equity/Real Estate

 

 

 

27.

CLOSED SESSION - PURSUANT TO SUBDIVISIONS (a) AND (d)(1) OF GOVERNMENT CODE SECTION 54956.9 to Confer with, or Receive Advice from, Legal Counsel Regarding the Consolidated Class Action Against LendingClub Corporation Pending in the United States District Court, Northern District of California; and Possible Action

 

 

18-42

28.

Discussion of Request for Proposal for Private Equity Consulting Services; and Possible Action

a)       Hamilton Lane

b)       Pavilion

c)  Pension Consulting Alliance

d)       Portfolio Advisors

e)  StepStone

f)   TorreyCove

 

 

 

29.

Discussion of Plan Amendments; and Possible Action

 

18-43

 

a)  Proposed Plan Amendments to Reduce Vesting Requirements for Tier 2 Members

 

18-44

 

b)  Amendments to the Water and Power Employees’ Retirement Plan to Address Technical Issues and to Make the Plan More Consistent

 

18-45

 

c)  Addition of a New Plan Provision Section II F (4) to Comply with Internal Revenue Code

 

18-46

 

d)  Proposed Plan Amendments to Align the Actuarial Assumptions in the Plan Document with Those Used in the Actuarial Valuation

 

 

REPORTS FOR REFERENCE  (Items of Interest to the Board on which no action is taken)

 

 

 

30.

Investment Reports for July 2017

a)      Summary of Investment Returns as of July 31, 2017

b)      Market Value of Investments by Fund and Month as of July 31, 2017

c)  Market Value of the Retirement, Death, and Disability Funds and Retiree Health Care Fund as of July 31, 2017

 

 

 

31.

RETIREMENT PLAN MANAGER’S COMMENTS

 

 

 

32.

FUTURE AGENDA ITEMS

 

 


In compliance with Government Code Section 55957.5, non-exempt writings that are distributed to a majority or all of the Board or applicable Committee of the Board, in advance of their meetings, may be viewed at the offices of the Water and Power Employees’ Retirement Plan (WPERP), located at 111 North Hope Street, Room 357, Los Angeles, California 90012, or at the scheduled meeting.

 

Posted on November 3, 2017.