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HomeMy Public PortalAboutR3567 Employees Pension Plan Investment Manager Change - Allianz resRESOLUTION NO. 3567 A RESOLUTION authorizing the Secretary-Treasurer of The Metropolitan St. Louis Sewer District to liquidate assets from the domestic equity investments in the Employee’s Pension Plan and to reallocate those assets to the Allianz GI Structured Alpha Global Equity 350 LLC fund managed by Allianz Global Investors U.S., LLC as recommended by the District’s pension investment consultant, AON Hewitt Investment Consulting, Inc. WHEREAS, The Metropolitan St. Louis Sewer District has established an Employee Pension Plan in accordance with the Charter Plan, as amended June 5, 2012, Section 3.020(22). Article 9 of the Pension Plan allows the Board of Trustees to appoint investment managers and direct the Trustee of the Pension Plan to invest a specified portion of the Pension Fund in a particular asset or assets; and WHEREAS, in the form of a Pension Plan, Ordinance No. 15110, as amended, provides for the pensioning and other retirement benefits of employees of the MSD and spouses and minor children of deceased employees, and provides for the payment of public funds for such purposes, in accordance with the MO Constitution of 1945, as amended, and the MO Statutes enacted authorizing said Pension Plan; and WHEREAS, specifically, Article 9.2 of the Pension Plan provides that the Board of Trustees of the District, may from time to time, appoint one or more investment managers direct any Trustee or Trustees of the Pension Plan with respect to all or a specified portion of the assets of the Pension Fund held by said Trustee. Such investment managers must meet the requirements of section 3(38) of the Employee Retirement Income Security Act of 1974, P.L. 93- 406, as amended; and WHEREAS, specifically, Section 9.3 of the Pension Plan provides that the Board of Trustees of the District may, from time to time, direct the Trustee of the Pension Plan to invest a specified portion of the Pension Fund in a particular asset or assets; and WHEREAS, Resolution No. 3416, adopted April 12, 2018, specified the manner in which the assets of the Pension Fund of The Metropolitan St. Louis Sewer District are to be invested; and WHEREAS, the District seeks to appoint Allianz Global Investors U.S., LLC as an investment manager and reallocate funds from the U.S. Equity asset class to the Global Tactical asset class; and WHEREAS, the Board of Trustees of The Metropolitan St. Louis Sewer District presently receives services from AON Hewitt Investment Consulting, Inc., per Ordinance No. 15006, adopted September 13, 2018, to act as the employee pension fund investment consultant and provide investment advisory services; and WHEREAS, AON Hewitt Investment Consulting, Inc. has conducted a review and evaluation of the Employee Pension Fund investment activities, and has made certain pension fund investment recommendations to the Board of Trustees. NOW, THEREFORE, BE IT RESOLVED that the following actions be taken on behalf of the Trustee of the Pension Plan with respect to the assets of the Pension Fund of The Metropolitan St. Louis Sewer District: a. Appointment of Allianz Global Investors U.S., LLC as investment manager and authorizing the Secretary-Treasurer to enter into an agreement with Allianz Global Investors U.S., LLC b. The Secretary-Treasurer of The Metropolitan St. Louis Sewer District is authorized to liquidate portions of the Pension Plan’s investments in the Blackrock Russell 1000 Index Fund, the Kennedy Mid Cap Value Fund, and the TimesSquare Small Cap Growth Fund for the purpose of raising funds to invest in the Allianz GI Structured Alpha Global Equity 350 LLC fund. BE IT FURTHER RESOLVED that the Executive Director and Secretary- Treasurer are hereby authorized and directed to execute any necessary instruments to give effect to the foregoing. The foregoing Resolution was adopted on February 13, 2020.