Loading...
R3138RESOLUTION NO. 3138 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. 4641, 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. 2740, adopted October 11, 2007, specified the manner in which the assets of the Pension Fund of The Metropolitan St. Louis Sewer District are to be invested and appointed Pyramis Global Advisors as investment manager of the Market Neutral Component, and WHEREAS, the District seeks to terminate Pyramis Global Advisors as investment manager of the Market Neutral Component; reduce the Market Neutral Position to 0% due to poor performance and declining fund assets; reallocate the funds in the Market Neutral asset class over the current manager structure; and set new asset allocation targets and allowable ranges. WHEREAS, the Board of Trustees of the Metropolitan St. Louis Sewer District presently receives services from Pavilion Advisory Group, Inc., per Ordinance No.13719, adopted September 12, 2013 to act as the employee pension fund investment consultant and provide investment advisory services, and WHEREAS, Pavilion Advisory Group, 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 Secretary-Treasurer of the Metropolitan St. Louis Sewer District is authorized to terminate the District's relationship with Pyramis Global Advisors as investment manager of the Market Neutral Component; reduce the Market Neutral position to 0%; reallocate the funds in the Market Neutral asset class over current manager structure; and set new asset allocation targets and allowable ranges as indicated below: ASSET CLASS TARGET % ALLOWABLE RANGE % Equity Large Cap Equity 20 15-25 SMID Cap Equity 6 2-8 International Equity 10 5-15 Emerging Markets Equity 4 2-8 Total Equity 40 Fixed Income Domestic Core Bonds 14 10-20 Core "Plus" Bonds 12 10-20 Global Bonds 9 4-14 Emerging Fixed Income 0 0-7 Opportunistic Credit 0 0-5 High Yield Bonds 0 0-7 Total Fixed Income 35 Real Estate 5 0-10 Global Tactical 0 0-12 Market Neutral 0 0-7 Real Assets 5 0-10 Absolute Return 0 0-7 Hedge Funds 15 0-20 TOTAL 100 The Board of Trustees may from time to time alter the asset mix, the various investment instruments, and portfolio managers of the pension investment plan in response to changing investment market conditions. BE IT FURTHER RESOLVED that the Executive Director is hereby authorized and directed to execute any necessary instruments to give effect to the foregoing. The foregoing Resolution was adopted on February 13, 2014.