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Asset Management Committee: February 26, 2015

Chairman Kevin Lockett presided at the regularly scheduled meeting on February 26, 2015.  The following are reports received and actions taken:

Meeting minutes for the February 11th, 2015 Asset Management Committee were approved.

Staff introduced the June topical discussion which will be the manager due diligence process. Staff discussed the current economic and market environment and associated policy response and portfolio repositioning. It was noted by Staff that in addition to rebalancing transactions, a commitment had been made to a distressed debt fund, a US small-cap long/short equity manager was hired, and a midstream energy MLP fund had been sourced and selected.

Hamilton Lee, consultant with Cambridge Associates, presented an overview of what Cambridge Associates expects in 2015 in regards to its market outlook.

He discussed the effect of oil prices, equity market valuations across the globe, Euro-Zone challenges, and the outlook for US interest rates. Lee also discussed how the Endowment Pool compares to peers and commended Staff for the way the Endowment Pool is managed. Lee noted that the current asset allocation is more like larger institutions. Lee noted that the current distribution to purpose is in line with most mid-size institutions at 4.5%. Staff noted the 2014 fiscal year survey will be presented at the June meeting with larger sample sets and additional information.