HomeMy Public PortalAboutR3183RESOLUTION NO. 3183
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. 13796, 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. 3068, adopted January 10, 2013, appointed PIMCO
as investment manager of the Absolute Return Component, and
WHEREAS, Resolution No. 3138, adopted February 14, 2014, 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 terminate PIMCO All Asset Fund as investment
manager of the Absolute Return Component; reduce the Absolute Return Position to 0% due to
poor performance and organizational issues and instability; appoint Lighthouse Global
Long/Short, Ltd. as an investment manager; reallocate the funds in the Absolute Return asset
class to the Hedge Fund asset class; and
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 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) The Secretary-Treasurer of the Metropolitan St. Louis Sewer District is
authorized to terminate the District's relationship with PIMCO All Asset Fund as investment
manager of the Absolute Return Component, reducing the Absolute Return position to 0%; and
(B) Appointment of Lighthouse Global Long/Short, Ltd. as investment
manager for a portion of the Hedge Fund Component as specified in Resolution No. 3138 and
authorizing the Secretary-Treasurer to enter into an agreement with Lighthouse Global
Long/Short, Ltd.
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 December 11, 2014.