WEYMOUTH RETIREMENT BOARD JULY/AUGUST NEWS
♦  Fiduciary Investment Advisors is the Weymouth Retirement Board's consulting firm.  At the request of the Board, FIA issued a request for proposals, and evaluated the responses received, for a "Term Asset-Backed Loan Facility Program and/or Distressed Credit".  There was a brief window of opportunity for institutional investors, and in July, after discussion, the Board decided to reject the proposals which were received and to not invest in this program.

♦   State Street Global Advisors' International Equity Fund has undergone some changes in personnel, administration and style, and the Board asked FIA to issue an International Large-Cap Equity RFP to find a second International manager to compliment Artio Global.  Artio was hired this past winter to manage about 50% of the International mandate, or approximately $6.5 million.  After interviewing six fund managers, the Board voted to hire Earnest Partners to replace State Street Global Advisors.   Contracts will be executed and funds transferred during September/October.

♦  FIA recommended that the Board look at a new program, "Public-Private Investment Program" intended to be the second wave of economic recovery in fixed income investments.  Only nine firms have been authorized by the U.S. Treasury to offer this product, which is similar to a private equity product, but invests in commercial and residential mortgage backed securities.  A Request for Proposals was issued in July, and it is expected that the Board will interview firms, and make a decision whether or not to invest, by September 1st.   Once again there is a brief window of opportunity, and a 6 to 8 year capital commitment.

♦  Board members and staff will attend a PERAC (Public Employee Retirement Administration Commission) forum in September that will focus on recent Pension Reform Legislation and the efforts of the  Special Commission on Pension Reform.

♦  Two audits of the Retirement System were recently concluded.  The firm of O'Connor & Drew completed an audit of Calendar Year 2008 operations, and the Board will meet with that firm shortly to discuss the result of that study.  Upon approval of the "draft" audit, a formal audit report will be issued to the Mayor and Town Counsel.

The second audit, conducted by the Public Employee Retirement Administration Commission (PERAC) examined system operations and financial statements for the years 2006, 2007 and 2008.  The Board anticipates receiving a draft of that audit report within the next few weeks.  The process continues with the Board providing a response to any "findings" and returning the draft to PERAC.  The report is then finalized, copies distributed to the Board and the Town, posted on the PERAC website, and a follow-up visit made to the Board in about six months.