Jackson County Employees' Retirement System

JACKSON COUNTY EMPLOYEES' RETIREMENT SYSTEM

The regular meeting of the Board of Trustees is scheduled as follows:

September 27, 2018 8:30 a.m. Sixth Floor, Room 604 County Tower Building

AGENDA

1. Approval of Agenda

2. Public Comment

3. Investment Manager Update – Brandes, Pranav Jaiswal presenting

4. Minutes a. Regular Meeting Minutes – August 23, 2018 b. Policy Committee Meeting Minutes – August 23, 2018 c. Investment Manager Committee Minutes – August 23, 2018

5. Monthly Financial Statement – August 2018

6. Consent Agenda a. Comerica Bank Custodial Statements of Account for August () b. Purchase of Service c. Refunds of Contributions d. Distribution of DROP Balances e. Approve Application(s) for Retirement f. Approve Application(s) for Deferred Retirement Option Plan (DROP) g. Statements Paid h. Correspondence i. Robbins Geller Rudman & Dowd August 31, 2018 Settlement Report ii. Robbins Geller Rudman & Dowd August 31, 2018 Portfolio Monitoring Report iii. Robbins Geller Rudman & Dowd August 31, 2018 International Portfolio Monitoring Report iv. SSGA Performance and Analysis August 31, 2018 v. Morgan Stanley Client Statement for Period August 1-31, 2018; Morgan Stanley, SSGA, and Jefferies Transaction reports; SSGA Appraisal Report August 31, 2018 vi. ()

7. Old Business

a. Investment Manager Review Committee i. Other b. Policy Committee i. Policy 37 – Pension Administration Budget ii. Policy 38 – Actuarial Funding iii. Policy 19 – Repayment of Previously Withdrawn Accumulated Contributions iv. Policy 15 – Appointment of Public Member

 - Full report available in the Pension Coordinator’s Office

Jackson County Employees’ Retirement System Board of Trustees – Agenda September 27, 2018 - Page 2

c. Legal Counsel Update i. Matters deemed pertinent ii. Letter from Attorney Chris Vlachos d. Morgan Stanley Wealth Management Update i. Other e. Pension Coordinator i. Signature Audit – 2 benefits suspended from failure to return the form

8. New Business a. Informational Items i. Pension Coordinator Update – special project reviewing Disability Retirements b. Trustee Comments

Committee Meetings (immediately following regular meeting):

- Policy Committee

Next Meeting: October 25, 2018

MINUTES OF JACKSON COUNTY EMPLOYEES’ RETIREMENT SYTEM Thursday, August 23, 2018 6th Floor Room 604

The August 23, 2018 Regular Meeting of the Jackson County Employees’ Retirement System Board of Trustees was called to order at 8:30 a.m. by Chairperson James E.(Steve) Shotwell, Jr.

The following Trustees were present: Robert Griffis, Denise Owens, Tracey Johnson, Rodney Walz, Bryan Huttenlocker, Sharon Best, and James E. (Steve) Shotwell, Jr. Also in attendance: Jessica Gerlach – Pension Coordinator, Catherine Applegate – Pension Administrative Assistant, Nick Barris – Morgan Stanley, August Hurt – Morgan Stanley, Kayla Lange – Morgan Stanley, and Jack Timmony – VanOverbeke, Michaud and Timmony, P.C.

Approval of Agenda:

MOTION: Moved by Best, support by Griffis to approve the Agenda. Motion carried.

Public Comment: None.

Investment Manager Presentation:

August Hurt with Morgan Stanley presented an update on behalf of Morgan Stanley & Co. Morgan Stanley has raised their GDP number from 2.7% to 3% for 2018 – economy is still doing very well. Very strong earnings from Target, Lowe’s, and Wal-Mart. A lot of movement in the economy. Average American has about $1,000 - $2,000 extra in their pocket because of the tax cut, a lot of it is moving and being spent thus the economy has kicked up a bit. They think it is a one-year surge driven by the repatriation of funds – again part of the tax cut / tax rate. Hopeful things stay strong but thinking things will drop back off next year. Unemployment is 3.8% - the U6 is down to 7.5% - lowest since 2001. What’s contained in that U6 number: discouraged worker, marginally attached worker, and the part time worker that wants to be full time. Labor participation rate at 62.9%, starting to see a lot of people retire. Inflation was 2.2% year over year through May; expecting to see it come in at 2.6%. Feds have been trying to get the rate up over 2% and they finally have it. Morgan Stanley believes it will drift back down a little bit next year into the upper 1’s. Consumer confidence still very high at 126.4, it did peak in February at 130, highest since 2000. Big news, and what’s driving the stock market, is corporate profits - up 16.88% year over year. Expecting they are peaking or will peak in 3rd quarter. Mr. Hurt shared a chart of the US dollar – highlighting that back on Valentine’s Day, it was about 88.6 - Dollar versus a basket of currencies. Peaked at 96.8, about a 9% move up in the USD, now it’s backed off a little bit, still up about 7%; significant move in a short period of time. Whenever the dollar goes up it makes exporting of goods more expensive and vice a versa so it has been a little bit of negative for companies. This hurts foreign stocks owned in USD. Why the significant move – part of it is still interest rates – rates are well over 2% now; Germany at .4 - 10 year, Japan at .1. Last big item on the macro overview is trade decisions – caused a little bit of nervousness in the market, more so overseas than here. The Chinese stock market is down 24% for the year – emerging markets, which includes India, Latin America, Eastern Europe, down 9% for the year. A lot of nervousness because of trade discussions. We are hearing rumors of potential deal being struck with Mexico, hearing they will take that blueprint to Canada to renegotiate that part of NAFTA. Europe has said they are going to continue discussions. Chinese started low level talks again with US on trade. Capital markets -the Bond Market – last time we met the AG down 2% but has had a little recovery, still down 1%. Corporate bonds which were down 3% is still down 2% for the year.

Jackson County Retirement System Board of Trustees – Minutes for July 26, 2018 - Page 1

Looking at the flatness of the yield curve – 7 of the last 12 recessions were preceded by an inverted yield curve where the short rates are higher than the long rates and we’re getting closer and closer to that. As of right now the 2 year is 2.6%, 5 year is 2.7%, 10 year is 2.8% and 30 year is 3%. Fed will probably raise the short term Fed funds rate so may see that curve flatten a little more. The next potential Fed hike could be in December, and right now odds are that they are going to hike in December as well. Firm thinks it will see two more hikes next year, probably in the first half of the year, and that we will go to an inverted yield curve sometime in the first half of next year. We will see what that does in the financial world.

Stocks – thanks to a wonderful move the last 6-7 weeks, your stock market is now up over 7% - continuing to be led by growth stocks – growth stocks continue to outperform value stocks. Large Growth up just under 6%, where Value only up just over 1%. Mid Cap Growth up 3% - Mid Cap Value up about 2.5%. Small Caps however different story – Small Cap Value up 8.3%, Small Cap Growth only 7.2%. Why are small stocks moving - less trade concerns, most of their business is done in the US. During the Quarter real strength was in Energy – up 13.5%. Consumer Discretionary up 8%, Technology up 7%. Weakness was in Industrials – because of trade – down 3% and Financials also down about 3%. Expecting S&P 500 which is right now about 28.61 to finish the year at 27.50 – Firm thinks will finish lower than we are right now. Subject to change of course, but the concern has been the rolling correction sector by sector, only two areas that have not been hit that hard yet are Consumer Discretionary and Technology - have started to see some cracks - Netflix dropped over 20% - Facebook dropped over 20% - started to see a little bit of that happen – if spreads to the whole sector could keep the market choppy. And of course the Election in November – that could have an impact at some point. Lastly, International markets – the real negative – Japan is down 4.8%, China is down 24%, Europe down just over 1% – the index down almost 4% for the year. That’s hurt all of our accounts with foreign managers. If trade resolution is done could see those market spring back.

Kayla Lange spoke of the packet distributed at the meeting. She provided an update on the Portfolio – as of June 30th total market value is just above $231 million for the portfolio. Investment earnings were about $4.8 million for the quarter; which equates to performance of about 2% overall for the plan for the quarter. This is seemingly modest, especially as compared to some returns in 2017, but in terms of a balanced portfolio, it was a pretty difficult feat to overcome. The portfolio was able to outpace the policy benchmark by about 87 basis points. The S&P was the place to be for the year. At the end of the 2nd quarter the market was up 3.5%. Bonds again rough start – down .16% - International down 1.25%. Year to date the Portfolio is up 2.4% net of fees. Again, seeing some significant outperformance verses the policy benchmark. The Portfolio has earns of almost $92 million dollars over the last 10 years.

Shotwell asked to clarify that the number since inception doesn’t include buying the Bond investment – Lange advised that was correct, it does not include that.

Lange spotlighted the last page in Tab 1, Asset Allocation Analysis. This is an overview of all Investment Managers in the portfolio. First time they’ve included this. Board concurred this is helpful to have available.

Lange continued with outlining the performance of the Investment managers.

The Bond proceeds portfolio was out lined. The portfolio represents 65.5 million of the total. The Portfolio was positive for the quarter with performance of about .84%. Portfolio was difficult especially with the significant international exposure in this UMA portfolio.

Beyond Tab 4 is the Holdings for the Comerica Assets.

Jackson County Retirement System Board of Trustees – Minutes for July 26, 2018 - Page 2

Questions: Gerlach spoke about Clearbridge reaching out requesting to use JCERS as a reference and what would be expected of those situations. Hurt advised that is something they see often. Best advised that it was for another governmental entity. Shotwell believes if they are not under watch we should be able to show the last report under their category and make a positive or negative recommendation from that – have the office write a letter for the Chair to sign. Board concurs.

Best asks what the highest percent a manger can hold of one particular stock in the portfolio as far as rules by Act 314 – can it be 10% of their portfolio for one particular holding? Barris believes it is 5%, but it would have to be of the overall, so if they are above that as far as their individual holding as long as they don’t go above it on your total assets in the plan, he believes it’s still compliant.

Barris covered the Asset Allocation update. It’s been a big move in the market – July was a month of recovery – August has been good too. We’re now in uncharted territory as far as the longest bull market ever. The plan is up about 4.6 million, the Bond proceeds up about 1.6 million. We are now in the positive again on the Bond proceeds account. Up $300k in the month, $1.6 million Quarter to date. Things look very positive. Barris spoke about Thornburg International. Brought up a question – looking at International and Bond markets. These portfolios are only about 7 months old; we don’t want anybody to say it’s time to make a change. But if Morgan Stanley were to bring a proposal on a change, the portfolio is a little different than the larger portfolio; would you like to see different peer group analysis or what the Boards’ thoughts are if a manager needs to be changed? Shotwell refers to the Investment Manager Committee – Huttenlocker feels it is too early to jump. Barris agreed. Huttenlocker would like to see them get a little bit of time. Hurt advises the nice part of this program is that they can make changes a little easier with no cost verses the other plan. Shotwell asks if Thornburg is on watch? Barris advised they are on approved list. We have two lists, approved and focus lists. JP Morgan is on Focus, Thornburg on Approved list. Barris feels it is too early to make a change, but if they continue to lag their benchmarks and continue to underperform, maybe in January we sit down and talk. Just wonders what the Boards’ thoughts are as far as the process for a replacement of a manager or for a rebalance. As Hurt mentioned, don’t have to form new contracts when there’s a new hire, it is all able to be done within the system. Shotwell feels Morgan Stanley should make a recommendation to IMC, do the analysis there, then bring back to the Board for review and Board will determine if they will follow the recommendation of the IMC. Barris appreciates the guidance given they are a brand new account and brand new system it’s the perfect way to proceed. Hurt questions if they can call a special IMC meeting if they have something pressing? Shotwell, yes, can choose to have meetings when important. Shotwell understands what protects us is due diligence. Shotwell spoke about how Matt would give a comparison of us with other large pension funds. We like to know where we are at percentage wise. If that’s available, if you could we would like to know we are doing good. Once a year is ok.

Best questioned if the State is now collecting data from all the pension funds and are they going to present a report – what are we seeing from that? Timmony spoke on PA 202: established the Stability Board, the State Treasurer has to propose uniform stand assumptions for reporting purposes. A Memo was present that addresses the uniform assumptions. Looking at the System’s most recent valuation it is right there with them, very close. Mortality table RP2014; right now using RP2000, but beginning next year will use the RP2014. Nothing that says the State Treasury is to digest the information and report back out.

Best asks for the future Investment Manager Committee meetings would like to see Thornburg’s holdings as comparing it as a value manager to Brandes because there’s a big difference there

Jackson County Retirement System Board of Trustees – Minutes for July 26, 2018 - Page 3

since the beginning of the year performance with the two being value managers. Like to see what they are in and why there is such big difference in returns.

Barris closed with highlights on two Value Managers. JP Morgan is on the Focus list, so best of the best as far as Morgan Stanley’s research, due diligence, on site visitation, things like that. They have outperformed on all To-Date data by significant margins; currently about 2% above their benchmark. They watch these over a long period of time. Thornburg is a little bit of a different story. Little bit concerned, want to make sure this is contained and that it isn’t a longer problem. No suggestion right now, but if they need to report to the Investment Manager Committee they will. Thornburg hasn’t always trailed, so they’ll keep them under watch. They are about 3.3% behind because of stock picking alone. They will report to Investment Manager Committee if any changes.

MOTION: Moved by Best, support by Huttenlocker to receive the Morgan Stanley report. Motion carried.

Meeting Minutes:

MOTION: Moved by Owens, support by Walz to approve the Regular meeting minutes and Policy Committee meeting minutes of July 26, 2018. Gerlach asked for feedback on how the Board felt about the content of the minutes, this being the first minutes prepared and they seemed lengthier. Owens liked it being a new member the more detail the better; Griffis and other board members concurred. Best comments that if an item comes up down the road sometimes in the past the minutes were vague. Griffis concerned with the time it may take; Gerlach provided insight on her last position and how listening to court hearings and processing recordings into a document is quite applicable to this circumstance and wasn’t trouble at all. Shotwell agreed they are very nice minutes. Motion carried.

Monthly Financial Statement:

Latham was not in attendance, therefore, no presentation given. Written Report was submitted to Board members. No comments or questions posed.

MOTION: Moved by Huttenlocker, support by Owens to receive the Financials as submitted for July 2018. Motion carried.

Approval of Consent Agenda:

MOTION: Moved by Best, support by Griffis to concur with the Consent Agenda:

a. Comerica Bank Custodial Statements of Account for July () b. Purchase of Service c. Refunds of Contributions d. Distribution of DROP Balances e. Approve Application(s) for Retirement f. Approve Application(s) for Deferred Retirement Option Plan (DROP) g. Statements Paid h. Correspondence i. Robbins Geller Rudman & Dowd July 27, 2018 Settlement Report ii. Robbins Geller Rudman & Dowd July 27, 2018 Portfolio Monitoring Report iii. Robbins Geller Rudman & Dowd July 27, 2018 International Portfolio Monitoring Report

Jackson County Retirement System Board of Trustees – Minutes for July 26, 2018 - Page 4

iv. Robbins Geller Rudman & Dowd August 08, 2018 Q2 2018 Litigation Report v. Garcia Hamilton & Associates June 30, 2018 Portfolio report vi. SSGA Performance and Analysis July 31, 2018 vii. C.S. McKee Investment Review 2nd Quarter viii. Aristotle Portfolio Report June 30, 2018

Roll Call vote: Griffis – yes, Owens– yes, Johnson – yes, Walz – yes, Huttenlocker– yes, Best – yes; and Shotwell – yes. Motion carried unanimously, 7 – yes.

Investment Manager Review Committee:

No update this month.

Legal Counsel / Policy Committee:

Legal Update: Timmony speaks again on the Memo presented regarding the State Treasurer reporting. PA 202 requires an Audit of your Actuary every 8 years. If you do not engage in the Audit, the Act requires you to replace your Actuary. GRS is prepared, they have a national presence, they know how to audit and how to be audited by actuaries, they are geared up and this will be seamless. Best questioned if we pay for that; Timmony advised this is an unfunded mandate, so yes. Shotwell asked if anyone has challenged this yet, Timmony not yet because the requirement will be effective next year. Shotwell’s understanding is you have a year and a day to take suit – Timmony would not agree that is the statute of limitations, does expect there to be some legal challenge. Shotwell advised the Board of Commissioners had to take action when it dealt with City on Storm water fees – which had to be done within one year and a day from the statue effective date, so Shotwell asks Timmony to review and get back with the Board. Timmony advised in terms of the cost of litigation, it might exceed the cost of an audit so factor that into the analysis, but the statue limitation question is first and foremost. Shotwell has a group of commissioners that are willing to be right; not afraid of a battle or supporting the employees and their costs. Timmony also advised Francios has told us there will be a new mortality table that will include public employee data. Believes Francios mentioned that he is going presenting that the Board and using that in the future as part of the annual evaluation.

Timmony touched on updates to Policy 39 – Universal Purchase of Service - pages 6&7 which are part of the application to purchase, the Board asked for the applicants name to appear on those two pages; that has been added and is now a part of the policy.

Morgan Stanley Investment Consultants:

Asset Allocation and Portfolio Rebalancing Memo: Lange advised of the Memo dated August 14th recommending transferring some money back to Garcia Hamilton where expenditures are made out of to boost cash supply. Recommending 6 million to GHA to sustain several months of payments. $2 million from Polen, $1 million each from the S&P 400 and 500, Calamos and Aristotle. Shotwell asks how many payments are left from the County and if those go to the Garcia Hamilton account – do they pay monthly or quarterly? Gerlach advised they pay quarterly. Shotwell asks if those are considered in the rebalancing and if those go to GHA? Gerlach advised the Employer contributions do go to GHA. Shotwell asks if this will carry us through the end of the year? Lange advised they hope so, yes. The last rebalance was in March. Johnson: we’re down 6.3 million in GHA, so when is the next contribution from the County? Shotwell says we should still expect Q3 and Q4. Johnson asks how much is the County going to put in? The last deposit was roughly $247 thousand. Best brings up that contributions year to date as only been $1.9 million Johnson is thinking a little more for more a

Jackson County Retirement System Board of Trustees – Minutes for July 26, 2018 - Page 5

cushion maybe $2 million maybe $500 thousand – maybe another $2 million broke up between the four that we have listed at a million. Huttenlocker questions if we don’t think we have enough? Would hate to take more than we really need to. Huttenlocker thinks we should leave it at 6 million. Best advised distributions year to date around 7.5 million – so seven months’ worth and going forward we’ll have distributions for retirees, they will have 11 million. Barris agreed, fixed income in a rising interest rate environment is not the best place to be. You can rebalance anytime, maybe that’s something to put on the agenda in January. To overweight fixed income right now is probably not the best.

MOTION: Moved by Huttenlocker, support by Best to receive Morgan Stanley Investment Consultants’ rebalancing memo. Roll Call Vote: Owens– yes, Johnson – yes, Walz – yes, Huttenlocker– yes, Griffis – yes, Best – yes; and Shotwell – yes. Motion carried unanimously, 7 – yes.

New Business:

Informational Items:

MOTION: MAPERS Delegates: Huttenlocker nominates Owens and Johnson as delegates for the fall MAPERS, Shotwell supports. Motion carried.

Trustee comments:

Owens advised the Fair did well. Best is going on a trip but is expecting to return before the next Board meeting. The Commissioners are happy with the community support for the Parks and Animal Control. Shotwell sends compliments to the Road crews on their accomplishments.

MOTION: Moved by Huttenlocker, support by Griffis to adjourn the meeting. Motion carried. Meeting adjourned at 9:42 a.m.

______Chairperson Pension Coordinator

Jackson County Retirement System Board of Trustees – Minutes for July 26, 2018 - Page 6

POLICY COMMITTEE MINUTES OF JACKSON COUNTY EMPLOYEES’ RETIREMENT SYTEM

Thursday, August 23, 2018 Tower Building 5th Floor

The Policy Committee Meeting of the Jackson County Employee’s Retirement System Board of Trustees was called to order at 9:49 a.m. by Pension Coordinator Gerlach. Trustees present: Denise Owens, Robert Griffis, and Rodney Walz. Absent: none. Also in attendance Jessica Gerlach, Pension Coordinator and Jack Timmony of VanOverbeke Michaud and Timmony.

Special Order:

Gerlach opened the floor for nominations for a Chairperson for the Policy Committee.

MOTION: Owens nominates Griffis for Chairperson, Walz supports. Motion carried.

MOTION: Moved by Owens, supported by Walz to approve the Agenda. Motion carried.

Public Comments: None

Policy #37 – Pension Administration Budget - was discussed first. Timmony provided the background on the policy and review. Policy 37 has a reference to Section 12c (4) of PA 314. The PA has not changed and is still valid. Timmony recommends no changes to this Policy. The other underlying policies, #9 Educational Seminar and Conference and #21 Supplemental Actuarial Valuation, are still valid as well. Griffis had questions regarding the per diem for the appointees and trustees with respect to going to conference and why it differs from Pension Board and the County Board. Timmony advises the Retirement system is a legal and separate entity from the County. So the BOT is obligated to enact its own policies. Griffis clarifies that he is looking for clarification on the process of reimbursement following expenses paid during a conference. The Retirement system Policy requires receipts where the County Board Policy provides a flat per diem. Timmony advises because they are two different entities. Griffis questions if our policies can be the same. Timmony advises as long as it fits in the frame work of the law applicable to the Retirement system. Gerlach also advises that from the PC position there isn’t anything in the policy to follow; it seems very vague in how to determine what a participant is due. Knowing a little more of what is expected for those reimbursements would be helpful. Timmony advises the receipts are required to pass an audit. So whether you need to turn in receipts, needs to be deferred to a broader discussion and bring in folks that work with the auditor. Griffis questions what Timmony’s legal opinion is of the requirement for receipts. Timmony advises it does make it cleaner. Gerlach advised as well that moving forward a packet is being prepared for Trustee members attending Conferences which will include the reimbursement procedure and an envelope for receipts. Timmony further advises maybe we would like to review the Policy on the Expense report. The committee would like to open up Policy 9 for discussion at the next meeting. But as far as Policy 37 – recommend no changes at this point. DRAFT

MOTION: Owens moved to recommend to the full Board no changes to Policy 37, supported by Walz. Motion carried.

Policy #38 – Actuarial Funding – Gerlach provided a recap. The policy was discussed about a year ago and was to be forwarded to the Actuary for review. Follow up was conducted with

Policy Committee August 23, 2018 Meeting 1 Francois and they still consider the policy valid. Timmony advised the statutory references remain valid. The only change that isn’t captured is the requirement of the Actuary to be audited once every eight years, but that’s a legal function not an Actuarial funding issue, so the policy is still in good shape.

MOTION: Moved by Walz, supported by Owens to recommend no change to Policy #38 to the full Board. Motion carried.

Policy # 18 – Pension Coordinator Evaluation - Timmony provided the background on the policy. In the past there was a question as to whether the Pension Coordinator was contract employee of the board or employee of the county assigned to the Board. The Policy references “…including as contracted through the Jackson County Human Resources.” That is no longer valid. The person is a County employee and no longer contracted through HR, so the policy needs to be revised. Gerlach confirms her understanding of being a County employee assigned to Retirement. Timmony advised need to clean up the 2nd whereas clause. It will need to reflect the current situation. Timmony advised he would work with Gerlach to come up with some language. Additionally, the second part addresses who is responsible for evaluating the employee, that’s why we have the HR Director doing that with input from the Board. The committee has referred the policy to Timmony and Gerlach for appropriate revision and to return to the Committee.

Policy #16 – Effective date of retirement – Gerlach provided background. During review of policy and bylaws, believes there is a discrepancy between what the Bylaws and Policy states regarding the effective date of payment. In January 2015 when Bylaws were revised possibly the Policy wasn’t updated. Bylaw 8 (2) says “… Due to administrative delays, in some circumstances a Member’s benefit may not commence until the first day of the month following the month containing the Member’s selected effective date of retirement. However, in such a case, the first benefit payable to the Member shall also include payment for the prior month containing the Member’s selected effective date of retirement. However, in such a case, the first benefit payable to the Member shall also include payment for the prior month containing the Member’s selected effective date.” But the Policy says payments are made in arrears. Timmony believes this reflects a catch up. Gerlach questions if the Policy could be updated to more accurately reflect the Bylaw. The committee discusses the difference in payment being current or arrears. Timmony requests to check with Comerica to see if they are paying current or arrears. Pension Coordinator will talk to Comerica and see if we can determine what is correct. Committee refers Policy 16 to Legal Counsel and Pension Coordinator for further investigation and recommendation.

Timmony advised of two policies he would like to bring attention to. Policy #19 – Repayment of Previously Withdrawn Accumulated Contributions - Need a restatement, Section 4 of Bylaws provides a formula for determining what the repayment amount is that should be referenced in the policy. Before there was at an interest rate determined by the Board of Trustees, now there is specific provision for what the interest rate is depending on the benefit group. Walz needed clarification on what the policy address. Timmony provided a generalization of what the policy addresses. Gerlach further explained with respect to specifically Medical Care Facility. So, we just need to tie theDRAFT Bylaw update into the Policy.

Policy #15 – Appointment of Public Member to Board of Trustees – Timmony advises the Bylaw was just amended and we need to capture the amendment into the policy.

Policy 15 & 19 are easy fixes.

Policy Committee August 23, 2018 Meeting 2 MOTION: Owens moved to direct Legal Counsel and PC to revise Policy #15 & #19 in accordance with amendments to the Bylaws and to recommend them to the full Board, supported by Walz. Motion carried.

MOTION: Owens moved to direct Legal Counsel and PC to revise Policy #16 & #18 and bring recommendations back to the Policy Committee for review, supported by Walz. Motion carried.

Trustee comments:

Owens compliments new Chair. Timmony requests considering meeting again next month to review the policies referred for review. Further policies will be brought as necessary. Now we keep track of changes to the Bylaws that affect the Policies. Timmony will always advise when any legislative updates impact the policies. Timmony advised there is going to be a new policy; Shotwell asked that the committee develop a policy that allows the Board Chairperson to sit on the IMC or Policy if there is no quorum, so the meeting can proceed. Timmony advised the policy is in draft form to be presented next month to the Policy committee.

Griffis brings up question on how the FAC figure gets set. Some of the County is 3 years, some is 5 years. Pension Board sets? Griffis is getting a lot of questions at JDOT about what happened during the updates during the merge of JDOT to the County, where a lot of things were changed for JDOT to reflect the County benefit, but the FAC wasn’t changed. Timmony advised the Bylaws define it in Section 2. The plan document is comprised of the state statue, the Bylaws, and the collective bargaining. For non-union it takes an act of the County Commissioners to amend the Bylaws. Timmony outlined the current Bylaw. Griffis was provided clarification on how the Bylaws are changed through the County Commissioners or Union Negations depending on the affected group.

Next meeting will be September 27, 2018.

MOTION: Walz moved to adjourn the meeting, supported by Owens. Meeting adjourned at 10:48 a.m.

______Chairperson Pension Coordinator DRAFT

Policy Committee August 23, 2018 Meeting 3

INVESTMENT MANAGER REVIEW COMMITTEE MINUTES OF JACKSON COUNTY EMPLOYEES’ RETIREMENT SYSTEM

Thursday, August 23, 2018 Tower Building 6th Floor

The August 23, 2018 Investment Manager Review Committee Meeting of the Jackson County Employees’ Retirement System Board of Trustees was called to order at 9:47 a.m. by Trustee Huttenlocker. Trustees present: Best, Johnson, and Huttenlocker. Also in attendance: August Hurt, Nick Barris, and Kayla Lange of Morgan Stanley Wealth Management; Cathy Applegate– Pension Coordinator Assistant.

MOTION: Moved by Best, supported by Johnson, to approve the Agenda. Motion carried.

Public Comments: None.

August Hurt of Morgan Stanley began the review of Garcia Hamilton. Garcia Hamilton is a very conservative manager. Collecting a lot of assets. They are 100% employee owned. Garcia owns 44.5%; Hamilton owns 22%, so those two own about two-thirds of the company. Garcia is the driving force behind the firm. Hurt provided an article showing Garcia’s awards over the years. Garcia currently serves on the Board of Trustees of the Dallas Police & Fire Pension system. Hurt advised the only concern they have with Garcia Hamilton is their limited number of senior investment professionals. Best – what is their staffing number? Hurt – probably about 12 people.

Kaya Lange spoke about the performance of Garcia Hamilton. They wanted to look at the manager relative to the peer group. As done in the past, Morgan Stanley ran an analysis of Garcia Hamilton against 17 or 18 firms in a core group. Garcia Hamilton was hired by JCERS in 1995, so 23 years ago – they’ve been best in class throughout that time. In the comparison, Garcia Hamilton vs Peers of all intermediate fixed income managers, they have been 1st or 2nd in performance in the Quarter, 1, 3, 5, 7, and 10 year comparisons, and they have beaten the primary benchmark in every time period. They are average to below average in the risks they are taking. They are taking less risk than their benchmark in almost every measuring period as well. Huttenlocker questions in standard deviation, is higher is better? Lange advised the lower is less risk. Lange continued with the next data table, Garcia Hamilton was best in ROR (Rate of Return); Alpha is value added by a manager – again well above their peer group in terms of Alpha; Beta is a measure of sensitivity to the market, ideally you want the Beta to be less than 1, the lower the number the less volatile the portfolio is in terms of the market, Garcia Hamilton is right in line with the Peer group. Sharpe Ratio measures excess return per unit of risk – that’s a point that you want to be higher. Garcia Hamilton is the highest against peers. Barris pointed out that Garcia Hamilton on the 1st page missed having the best 10 year number by .01% to Ryan Labs, but in the 5 and 10 year the Beta and Sharpe Ratio of the Ryan Labs is a lot higher – so they are taking a lot more risk, so not only is Garcia Hamilton almost the top performer, but they are doing it with a lot less risk.

JCERS Investment Manager Committee August 23, 2018 Meeting 1

Johnson – had a clarification question about the purpose of money held by Garcia Hamilton. Several members were able to clarify Johnson’s questions.

Lange – it’s a great point that Garcia Hamilton manages to the cash needs of the plan. It’s impressive they’ve been able to meet and exceed expectations. Lange outlined the 10 year performance of Garcia Hamilton and reviewed the Up/Down Market Analysis.

Lange advised again there are no issues with the firm other than key person risk, but at this point they believe Mr. Garcia will be around for the foreseeable future.

Huttenlocker believes no adjustments need to be made with Garcia Hamilton. Calls for comments or concern? None.

Hurt advised they are going to spend some time over the next few months on Thornburg. Huttenlocker’s opinion is to go off Morgan Stanley’s direction, but 7 months is too early.

Hurt asked how the Committee would like to move forward with Thornburg and when an update would be best. The Committee advised to schedule out 2 months, and submit an update after the 3rd quarter, see what they are doing at that point.

Motion to adjourn the meeting by Best, supported by Johnson. Motion carried.

Meeting adjourned 10:14 a.m.

______Chairperson Trustee

JCERS Investment Manager Committee August 23, 2018 Meeting 2

JACKSON COUNTY EMPLOYEES’ RETIREMENT SYSTEM CONSENT AGENDA MOTIONS September 27, 2018 Roll Call

A. Receive Comerica Bank Custodial Statements of Account for August ()

B. Purchase of Service – None

C. Approve Refunds of Contributions –

9150 - $371.11 9151 - $624.08 9152 - $2,418.15 9153 - $1,819.69 9154 - $7,744.44 9155 - $1,850.85

D. Approve Distribution of DROP: a. #269 - $97,268.17

E. Approve Application for Retirement: a. Chad Surque (GEN) – effective 10/1/018, DOH 3/14/1996, adj DOH 3/14/1992: 22 years 7 months membership and 4 years purchased b. Rock Soles (GEN) – effective 10/1/18, DOH 1/26/1996, adj DOH 1/26/1992: 22 years 8 months membership and 4 years purchased

F. Approve Application(s) for entrance into the Deferred Retirement Option Plan (DROP): a. Julie Weisbrod (GEN) – effective 10/1/18, DOH 7/19/1993: 25 years 2 months membership b. Thomas White (JCDOT) – effective 11/1/18, DOH 9/18/2000, adj DOH 9/18/1999: 18 years 1 month membership and 1 year purchased

G. Statements Paid

H. Correspondence:

a. Robbins Geller Rudman & Dowd June 29, 2018 Settlement Report b. Robbins Geller Rudman & Dowd June 29, 2018 Portfolio Monitoring Report c. Robbins Geller Rudman & Dowd June 29, 2018 International Portfolio Monitoring Report d. SSGA Performance and Analysis August 31, 2018 e. SSGA Appraisal Report August 31, 2018 f. Morgan Stanley Client Statement for Period August 1-31, 2018; Morgan Stanley, SSGA, and Jefferies Transaction reports ()

() Full report available in the Pension Coordinator’s office REFUNDS OF ACCUMULATED CONTRIBUTIONS Approved at the Board meeting on September 27, 2018

Post-Tax Pre-Tax Refund # Name & Dept. Term Date Contribution Contribution Interest Total Refund

9150 05/27/18 0.00 371.11 0.00 371.11 9151 09/03/18 0.00 624.08 0.00 624.08 9152 05/28/18 0.00 2,320.29 97.86 2,418.15 9153 09/03/18 0.00 1,772.44 47.25 1,819.69 9154 08/24/18 0.00 6,861.01 883.43 7,744.44 9155 03/29/18 0.00 1,846.89 3.96 1,850.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL 14,828.32 General 0.00 Road 0.00 Medical Care 14,828.32 balanced

DISTRIBUTION OF DROP ACCOUNT BALANCE

DROP Term Non-Tax Taxable Pre-Tax Dist. # Name & Dept. Date Pension Pension Contribution Interest Total Refund 269 08/31/18 307.21 80,822.58 4,828.68 11,309.70 97,268.17

TOTALS: 97,268.17

General 97,268.17 Medical Care 0.00 JCDOT 0.00 97,268.17 balanced

Authorization to Pay Refunds of Accumulated Contributions and DROP Account Balance

1 Chairperson 1 Trustee 1 Vice-Chairperson 1 Trustee JACKSON COUNTY EMPLOYEES' RETIREMENT SYSTEM STATEMENTS PAID 8/24/18 - 9/14/2018

DATE SUBMITTED COMPANY AMOUNT BILLED AMOUNT PAID FOR PAYMENT DESCRIPTION Comerica Bank MasterCard*** $1,128.58 $1,128.58 9/14/2018 Office Depot/Max office supplies, MAPERS registrations ***Comerica did not process the August payment request, therefore a late fee was applied. The late fee is being reversed as it was their mistake. The amount paid this month was as directed by a Comerica Representative - see attached email. This will cause us to have double paid the $45 from August and pay the $50 late fee which is being credited, so the September statement should be $95 ahead.

Q:\Accounts Payable\Statements paid\2018\18_0927

Jackson County Employees' Retirement System August 31, 2018 Settlement Report

Shareholder Class Actions

RGRD has identified the following settled shareholder class actions with upcoming claims deadlines. Check-marked and shaded cases are those where the Portfolio Monitoring Program® indicates that an eligible claim may exist. The range of data analyzed in the context of this report is approximately Aug 2007-current. Where data is incomplete, potential claims may not be identified.XPlease click on the case name to view the Claims Administrators' websites for additional information about these settlements.X

Claims Gross Class Deadline Case Class Period Recovery Claims Administrator 09/11/2018 Alliance MMA, Inc. 10/06/2016-04/12/2017 $1,550,000 Strategic Claims Services 09/25/2018 Code Rebel Corp. 05/19/2015-05/12/2017 $415,000 Strategic Claims Services 09/27/2018 PTC Therapeutics, Inc. 11/06/2014-02/23/2016 $14,750,000 A.B. Data, Ltd. 10/08/2018 Big Lots, Inc. 03/02/2012-08/23/2012 $38,000,000 Gilardi & Co. LLC 10/10/2018 Virtus Investment Partners, Inc. 01/25/2013-05/11/2015 $22,000,000 Garden City Group, LLC 10/15/2018 Akari Therapeutics, plc 04/24/2017-05/30/2017 $2,700,000 Strategic Claims Services 10/16/2018 Ability, Inc. 11/25/2015 IPO $3,000,000 KCC Class Action Services 10/22/2018 Orthofix International N.V. (SEC) 03/02/2010-08/07/2013 $8,370,023 Strategic Claims Services 10/23/2018 NuVasive, Inc. 10/22/2008-07/30/2013 $7,900,000 Strategic Claims Services 10/31/2018 21Vianet Group, Inc. 08/20/2013-08/16/2016 $9,000,000 A.B. Data, Ltd. 10/31/2018 Avinger, Inc. 01/29/2015-04/10/2017 $5,000,000 KCC Class Action Services 10/31/2018 Bank of America Corp. (SEC) Held on 03/20/2008 $115,840,000 Garden City Group, LLC 11/01/2018 Bank of New York Mellon Trust Co., N.A. Held on 12/07/2011 $13,500,000 Heffler Claims Group LLC 11/03/2018 Liquidity Services, Inc. 02/01/2012-05/07/2014 $17,000,000 Garden City Group, LLC 11/06/2018 Juno Therapeutics, Inc. 06/04/2016-11/22/2016 $24,000,000 A.B. Data, Ltd. 11/10/2018 Conn's, Inc. 04/03/2013-12/09/2014 $22,500,000 Epiq 11/16/2018 CytRx Corp. 09/12/2014-07/11/2016 $5,750,000 A.B. Data, Ltd. 11/22/2018 Rentrak Corp. Held on 01/29/2016 $4,750,000 Garden City Group, LLC 11/26/2018 LRR Energy, L.P. 08/28/2015-10/05/2015 $8,000,000 Garden City Group, LLC

Robbins Geller does not undertake any obligation with respect to the notification of any and all settlements publicly disclosed or otherwise, to the accuracy of any specific claims deadline, to the filing of any claims or to the accuracy of the information provided by the Client in the claim form. It is the responsibility of the Client to timely file any claims, and to provide all relevant information to the fund representative(s) responsible for filing claims on behalf of the fund. Many funds delegate the responsibility for this task to the fund's custodian, fund managers and/or a third party claims processing company. Robbins Geller's identification of the recovery of shareholder class action funds is based on available data reported to Client's custodian and may not reflect all recoveries obtained. Jackson County Employees' Retirement System August 31, 2018 Settlement Report (continued)

Shareholder Class Actions

Claims Gross Class Deadline Case Class Period Recovery Claims Administrator 11/26/2018 Saba Software, Inc. Held on 03/30/2015 $19,500,000 Garden City Group, LLC 11/26/2018 Vista Outdoor, Inc. 08/11/2016-11/09/2017 $6,250,000 Garden City Group, LLC 11/26/2018 Wilmington Trust Corp. 01/18/2008-11/01/2010 $210,000,000 Epiq 11/29/2018 Symbol Technologies, Inc. 03/12/2004-08/01/2005 $15,000,000 KCC Class Action Services 12/01/2018 Green Mountain Coffee Roasters, Inc. 02/02/2011-11/09/2011 $36,500,000 Epiq 12/12/2018 Quality Systems, Inc. 05/26/2011-07/25/2012 $19,000,000 A.B. Data, Ltd. 12/20/2018 Walter Investment Management Corp. 08/09/2016-08/01/2017 $2,950,000 A.B. Data, Ltd. 01/02/2019 Baxano Surgical, Inc. f/k/a TranS1, Inc. 02/23/2009-10/17/2011 $3,250,000 Epiq 01/02/2019 Medtronic, Inc. 09/08/2010-06/28/2011 $43,000,000 Gilardi & Co. LLC

Antitrust Class Actions

RGRD has identified the following settled antitrust class actions with upcoming claims deadlines. Please click on the case name to view the Claims Administrators' websites for additional information about these settlements.XBecause these antitrust cases rarely involve publicly traded securities covered by our Portfolio Monitoring Program®, RGRD cannot independently ascertain your eligibility to participate in any of these settlements.XPlease contact us if you have questions regarding any of these antitrust settlements.X

Claims Gross Class Claims Deadline Case Class Class Period Recovery Administrator 09/25/2018 Euroyen-Based Derivatives Euroyen-Based Derivatives 01/01/2006-06/30/2011 $30,000,000 A.B. Data, Ltd. 12/20/2018 LIBOR-Based Financial Instruments (Deutsche) U.S. Dollar LIBOR-based instruments 08/01/2007-05/31/2010 $340,000,000 Rust Consulting, Inc. 12/23/2018 ISDAfix Instruments Litigation (BNP Paribas) ISDAfix Instruments 01/01/2006-01/31/2014 $96,000,000 Epiq 12/31/2018 Transpacific Passenger Air Transportation Transpacific airline tickets 01/01/2000-12/01/2016 $49,900,000 Rust Consulting, Inc. 01/21/2019 Auto Parts Litigation (Aisan Industry) Vehicle component parts See Notice $115,180,800 Gilardi & Co. LLC

The Portfolio Monitoring Program® has generated preliminary loss amounts in the following new securities class actions. Certain of these cases were filed by other law firms, and RGRD has not evaluated the merits of such cases. Case summaries can be viewed by clicking on the case name. The range of data analyzed in the context of this report is approximately Aug 2007-current. Where data is insufficient for the class periods alleged, the loss amount may be inaccurate.

Case Financial Interest Class Period Motion Due Abaxis, Inc. 0 shares held Held on June 26, 2018 September 15, 2018 AbbVie Inc. No loss Purchased on May 30, 2018 September 24, 2018 ACADIA Pharmaceuticals Inc. No loss April 29, 2016 - July 09, 2018 September 17, 2018 CBS Corporation -$122 (Bond CUSIP 124857AR4) February 14, 2014 - July 27, 2018 October 26, 2018 CV Sciences, Inc. No loss June 19, 2017 - August 20, 2018 October 23, 2018 Diamond Resorts International, Inc. 0 shares held July 14, 2016 - September 01, 2016 September 23, 2018 Echelon Corporation 0 shares held Held on July 27, 2018 October 07, 2018 Envision Healthcare Corporation 0 shares held Held on August 10, 2018 October 27, 2018 Express Scripts Holding Company 0 shares held Held on July 12, 2018 September 10, 2018 Facebook, Inc. No loss October 01, 2017 - July 26, 2018 September 25, 2018 Farmland Partners Inc. No loss March 16, 2016 - July 10, 2018 September 09, 2018 FAT Brands, Inc. No loss October 23, 2017 IPO October 23, 2018 GDS Holdings Limited No loss November 02, 2016 - July 31, 2018 October 01, 2018 Helios and Matheson Analytics Inc. No loss August 15, 2017 - July 26, 2018 October 01, 2018 Impinj, Inc. No loss May 04, 2017 - August 02, 2018 October 06, 2018 Klondex Mines Ltd. 0 shares held Held on May 15, 2018 September 21, 2018 Lannett Company, Inc. No loss February 07, 2018 - August 17, 2018 October 26, 2018 LogMeIn, Inc. No loss March 01, 2017 - July 26, 2018 October 19, 2018 Mavenir, Inc. f/k/a Xura, Inc. 0 shares held Held on July 11, 2016 October 12, 2018 Mednax, Inc. No loss February 04, 2016 - July 27, 2017 September 09, 2018 Mercury Systems, Inc. No loss October 24, 2017 - April 24, 2018 September 08, 2018 National Beverage Corp. No loss July 17, 2014 - July 03, 2018 September 15, 2018 Nevro Corp. No loss January 08, 2018 - July 12, 2018 October 22, 2018 Nielsen Holdings plc No loss February 08, 2018 - July 25, 2018 October 07, 2018 Oracle Corporation -$9,261 May 10, 2017 - March 19, 2018 October 09, 2018 Pinduoduo Inc. No loss July 26, 2018 IPO October 20, 2018 Pinnacle Foods Inc. 0 shares held Held on July 24, 2018 October 21, 2018 Jackson County Employees' Retirement System August 31, 2018 Portfolio Monitoring Report (continued)

Case Financial Interest Class Period Motion Due Prothena Corporation plc No loss October 15, 2015 - April 20, 2018 September 15, 2018 Rockwell Medical, Inc. No loss November 08, 2017 - June 26, 2018 September 25, 2018 Sinclair Broadcast Group, Inc. No loss February 22, 2017 - July 19, 2018 October 08, 2018 Tesla, Inc. No loss August 07, 2018 - August 17, 2018 October 09, 2018 Tetraphase Pharmaceuticals, Inc. No loss March 08, 2017 - February 13, 2018 September 25, 2018 Vuzix Corporation No loss November 09, 2017 - March 20, 2018 September 22, 2018 Xcerra Corporation 0 shares held Held on July 27, 2018 October 06, 2018 Zion Oil & Gas, Inc. No loss March 12, 2018 - July 10, 2018 October 08, 2018 CBS Corporation

Summary of the Case:

The complaint charges CBS and certain of its officers with violations of the Securities Exchange Act of 1934. CBS is a mass media company with operations in the entertainment, cable network, publishing, and local media segments.

The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding the Company's business and compliance policies. Specifically, defendants failed to disclose that CBS executives, including the Company's Chairman and Chief Executive Officer, Leslie Moonves, had engaged in widespread sexual harassment at CBS, that CBS's enforcement of its own purported policies was inadequate to prevent such conduct, and that the conduct, when revealed, would foreseeably subject CBS to heightened legal liability and impede the ability of key CBS personnel to execute the Company's business strategy. As a result of this information being Class: withheld from the market, CBS securities traded at artificially inflated Purchasers of CBS securities between February 14, prices during the Class Period, with its stock price reaching highs of 2014 and July 27, 2018 more than $65 per share. Lead Plaintiff Motion Date: Then on July 27, 2018, various media outlets reported that The New October 26, 2018 Yorker would shortly publish an article discussing an investigative report detailing allegations of sexual misconduct by Moonves and other Ticker/CUSIP: executives at the Company. According to The New York Times, the CBS/124857202 article was written by investigative journalist Ronan Farrow and describes “sexual harassment alleged by six women in the Defendants: entertainment business against Mr. Moonves,” and “links the CBS Corporation, Leslie Moonves and Joseph R. accusations to a broader culture of sexual harassment at CBS, with Ianniello special focus on CBS News.” According to The New York Times, the article “outlines allegations of sexual harassment by several women Basis of Action: against a number of CBS News executives,” including Jeffrey Fager, Sections 10(b) and 20(a) of the Securities the former head of the news division, and states that “CBS News Exchange Act of 1934 executives were still promoted even after allegations of misconduct.” On this news, the price of CBS stock fell $3.52 per share, or more than Date Filed: 6%, to close at $54.01 per share on July 27, 2018. August 27, 2018 Court: Southern District of New York Judge: Buchwald

U.S. Litigation Alert Oracle Corporation

Summary of the Case:

The complaint charges Oracle and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Oracle is a multi-national technology company and one of the largest software companies in the world. The Company offers both on-premises and cloud solutions to a variety of end users. Unlike on-premises solutions, which are installed on a user’s computers, cloud solutions are accessed through the internet and are typically hosted by a third-party vendor like Oracle.

The complaint alleges that throughout the Class Period, defendants misrepresented the true drivers of the Company's cloud revenue growth. In particular, defendants falsely attributed the Company’s revenue growth in its cloud segment to a variety of factors and initiatives, including, among other things, Oracle’s “unprecedented level of automation and cost savings,” as well as the Company being Class: “customer-focused” and “intimate partners with [its] customer.” In truth, Purchasers of Oracle stock between May 10, 2017 Oracle drove sales of cloud products by using improper tactics, and March 19, 2018 including threatening current customers with “audits” of their use of the Company's non-cloud software licenses unless the customers agreed to Lead Plaintiff Motion Date: shift their business to Oracle cloud programs. The use of such tactics October 9, 2018 concealed the lack of real demand for Oracle’s cloud services, making the growth unsustainable and ultimately driving away customers. As a Ticker/CUSIP: result of defendants’ misleading statements and their failure to disclose ORCL/68389X105 these improper tactics, the price of Oracle stock was artificially inflated to more than $52 per share during the Class Period. Defendants: On March 19, 2018, Oracle disclosed that cloud revenue growth had Oracle Corporation, Safra A. Catz, Mark Hurd, become stagnant and forecast significantly slower sales growth for its Lawrence J. Ellison, Thomas Kurian, Ken Bond and cloud business than its competitors. Specifically, the Company Steve Miranda reported that quarterly cloud revenue rose only 32%, or just half the Basis of Action: average reported quarterly growth over the past two years, and Oracle projected that cloud sales growth would decline even further to only Sections 10(b) and 20(a) of the Securities 20% in the following quarter. Following these disclosures, analysts Exchange Act of 1934 connected Oracle’s poor financial performance to its improper sales Date Filed: tactics, with one observing that Oracle had to rely on coercive practices because its cloud-based offering is a “bare-bones minimum viable August 10, 2018 product.” As a result of this news, Oracle shares declined nearly 10%. Court: Northern District of California Judge: Freeman

U.S. Litigation Alert Jackson County Employees' Retirement System August 31, 2018 International Portfolio Monitoring Report

The Portfolio Monitoring Program® has generated loss estimates for the following international securities class actions. All of these cases have been, or will be, filed by other law firms and/or third party litigation funders. We have not evaluated the merits of these cases. The range of data analyzed in the context of this report is approximately Aug 2007-current. Where data is insufficient for the class periods alleged, the loss amount may be inaccurate. In many of these cases, you may need to take steps to join the action to participate in any subsequent recoveries.

Registration Case Country Financial Interest Relevant Period Deadline AMP Limited Australia No loss May 10, 2012 - April 15, 2018 Open

AMP Limited Australia No loss June 07, 2012 - April 15, 2018 Open

AMP Limited Australia No loss May 06, 2013 - April 13, 2018 Open

AMP Limited Australia No loss May 27, 2015 - April 13, 2018 Open

Arrium Limited Australia No loss August 19, 2014 - April 05, 2016 Open

BHP Billiton Ltd Australia No loss October 21, 2013 - November 30, 2015 Open

BHP Billiton plc Australia No loss October 21, 2013 - November 30, 2015 Open

Brambles Limited Australia No loss August 18, 2016 - February 17, 2017 Open

Brambles Limited Australia No loss October 20, 2016 - February 19, 2017 Open

CIMIC Group Limited Australia No loss November 23, 2010 - October 03, 2013 October 02, 2018

Commonwealth Bank of Australia Australia No loss June 16, 2014 - August 03, 2017 Open

Commonwealth Bank of Australia Australia No loss July 01, 2015 - August 03, 2017 Open Jackson County Employees' Retirement System August 31, 2018 International Portfolio Monitoring Report (continued)

Registration Case Country Financial Interest Relevant Period Deadline Crown Resorts Limited Australia No loss February 06, 2015 - October 16, 2016 Open

Daimler AG Germany No loss September 26, 2015 - June 11, 2018 Open

Dick Smith Holdings Limited Australia No loss December 04, 2013 - January 05, 2016 Open

Dick Smith Holdings Limited Australia No loss February 16, 2015 - January 03, 2016 Open

Estia Health Limited Australia No loss April 19, 2016 - October 05, 2016 Open

GetSwift Limited Australia No loss February 24, 2017 - January 19, 2018 Open

Jhen Vei Electronic Co Ltd. Taiwan No loss May 19, 2015 - July 03, 2015 August 31, 2018

Jhen Vei Electronic Co Ltd. Taiwan No loss October 01, 2015 - December 11, 2015 August 31, 2018

Jhen Vei Electronic Co Ltd. Taiwan No loss January 29, 2016 - March 18, 2016 August 31, 2018

Lundin Mining Corporation Canada No loss October 25, 2017 - November 29, 2017 Open

Macmahon Holdings Ltd. Australia No loss April 10, 2012 - September 19, 2012 August 24, 2018

Porsche Automobil Holding SE Germany No loss January 15, 2010 - September 21, 2015 November 30, 2018

Retail Food Group Limited Australia No loss April 18, 2017 - February 28, 2018 Open

Steinhoff International Holdings N.V. Germany No loss June 26, 2013 - January 31, 2018 Open

Vocus Group Limited Australia No loss November 29, 2016 - May 02, 2017 Open Performance and Analysis

As of 31 Aug 2018

Jackson County Employees' Retirement System

Jackson County Retirement System

Report ID: 2270472.1 Published: 11 Sep 2018 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

Table of Contents

Accounting Summary. 1

Performance Summary. 1

S&P 500 Flagship Fund 3

Characteristics and Risk Statistics 3

Top Holdings 4

Sector Contribution to Return 5

Sector Weights 6

Sector Returns 7

S&P Midcap Index Fund 8

Characteristics and Risk Statistics 8

Top Holdings 9

Sector Contribution to Return 10

Sector Weights 11

Sector Returns 12

Relationship Management Team 13

Important Information 14 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

Accounting Summary (expressed in USD) As of 31 Aug 2018 Jackson County Employees' Retirement System Beginning Market Value Appreciation / Ending Market Value 01 Aug 2018 Contributions Withdrawals Depreciation 31 Aug 2018 S&P 500 Flagship Fund 14,671,867 0 1,001,575 478,120 14,148,411 S&P Midcap Index Fund 18,508,772 0 1,003,580 587,857 18,093,050 Total 33,180,639 0 2,005,155 1,065,977 32,241,461

Performance Summary (expressed in USD) As of 31 Aug 2018 Jackson County Employees' Retirement System

1 Month 3 Months YTD 1 Year 3 Years 5 Years 10 Years Inception S&P 500 Flagship Fund 01 Jan 2001 Total Returns 3.26% 7.77% 9.94% 19.69% 16.15% 14.57% 10.92% 6.71% S&P 500(R) 3.26% 7.76% 9.94% 19.66% 16.11% 14.53% 10.86% 6.65% Difference 0.00% 0.01% 0.00% 0.03% 0.04% 0.04% 0.06% 0.06% Total Returns 3.26% 7.77% 9.94% 19.69% 16.15% 14.57% 10.92% 6.71% S&P 500 Custom Index (8/31/2004) 3.26% 7.76% 9.94% 19.66% 16.11% 14.53% 10.86% 6.66% Difference 0.00% 0.01% 0.00% 0.03% 0.04% 0.04% 0.06% 0.05% Total Returns (Net) 3.26% 7.75% 9.90% 19.63% 16.10% 14.51% N/A N/A S&P 500(R) 3.26% 7.76% 9.94% 19.66% 16.11% 14.53% N/A N/A Difference 0.00% -0.01% -0.04% -0.03% -0.01% -0.02% N/A N/A Total Returns (Net) 3.26% 7.75% 9.90% 19.63% 16.10% 14.51% N/A N/A S&P 500 Custom Index (8/31/2004) 3.26% 7.76% 9.94% 19.66% 16.11% 14.53% N/A N/A Difference 0.00% -0.01% -0.04% -0.03% -0.01% -0.02% N/A N/A

State Street Global Advisors Report ID: 2270472.1 Published: 11 Sep 2018 Page 1 of 15 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

Jackson County Employees' Retirement System

1 Month 3 Months YTD 1 Year 3 Years 5 Years 10 Years Inception S&P Midcap Index Fund 01 Nov 2000 Total Returns 3.19% 5.45% 8.66% 19.96% 14.83% 13.29% 11.37% 9.53% S&P MidCap 400(R) 3.19% 5.46% 8.68% 20.00% 14.84% 13.30% 11.35% 9.48% Difference 0.00% -0.01% -0.02% -0.04% -0.01% -0.01% 0.02% 0.05% Total Returns (Net) 3.18% 5.43% 8.60% 19.86% 14.74% 13.20% N/A N/A S&P MidCap 400(R) 3.19% 5.46% 8.68% 20.00% 14.84% 13.30% N/A N/A Difference -0.01% -0.03% -0.08% -0.14% -0.10% -0.10% N/A N/A

For information regarding performance data, including net performance data, please refer to the section entitled "Important Information" at the end of the report.

State Street Global Advisors Report ID: 2270472.1 Published: 11 Sep 2018 Page 2 of 15 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

Characteristics and Risk Statistics (expressed in USD) As of 31 Aug 2018 Jackson County Employees' Retirement System S&P 500 Flagship Fund Benchmark: S&P 500(R)

Characteristics Mandate Benchmark Risk Statistics Mandate Annual Dividend Yield (Trailing 12 Months) 1.86 1.86 Standard Deviation (Annualized 36 Months) 9.31 Estimated 3-5 Year EPS Growth 12.89 12.88 Beta (Trailing 36 Months) 1.00 Total Number of Holdings 506 505 Tracking Error (Trailing 36 Months) 0.03

Price/Book Ratio 3.31 3.30 Portfolio characteristics beta and standard deviation are calculated using SSGA month end return values. Characteristics are as of the date indicated, are subject to change, and should not be relied Price/Earnings Ratio (Forward 12 Months) 17.96 17.96 upon as current thereafter. Return on Equity (5 Year Average) 18.68 18.66 Weighted Average Market Cap (M) 250,647.14 250,197.10 Median Market Cap 22,087.49 22,087.49 Price/Earnings Ratio (Trailing 12 Months) 41.45 41.44 Price/Cash Flow (Weighted Harmonic Average) 14.57 14.56 Return on Equity (Trailing 12 Months) 21.65 21.63 Price/Sales (Weighted Average) 4.38 4.38

Portfolio characteristics are calculated using the month end market value of holdings. Averages reflect the market weight of securities in the portfolio. Market data, prices, and dividend estimates for characteristics calculations provided by FactSet Research Systems, Inc. All other portfolio data provided by SSGA. Characteristics are as of the date indicated, are subject to change, and should not be relied upon as current thereafter.

State Street Global Advisors Report ID: 2270472.1 Published: 11 Sep 2018 Page 3 of 15 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

Top Holdings (expressed in USD) As of 31 Aug 2018 Jackson County Employees' Retirement System S&P 500 Flagship Fund Benchmark: S&P 500(R)

Security Mandate Benchmark Difference APPLE INC 4.55% 4.55% 0.00% MICROSOFT CORP 3.53% 3.51% 0.02% AMAZON.COM INC 3.30% 3.30% 0.00% FACEBOOK INC-A 1.71% 1.71% 0.00% BERKSHIRE HATHAWAY INC-CL B 1.63% 1.63% 0.00% JPMORGAN CHASE & CO 1.60% 1.59% 0.01% ALPHABET INC-CL C 1.50% 1.50% 0.00% ALPHABET INC-CL A 1.49% 1.50% -0.01% JOHNSON & JOHNSON 1.47% 1.47% 0.00% EXXON MOBIL CORP 1.38% 1.38% 0.00%

The mandate percentage is calculated based on the total value of the portfolio excluding cash and derivatives.

State Street Global Advisors Report ID: 2270472.1 Published: 11 Sep 2018 Page 4 of 15 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

Sector Contribution to Return (expressed in USD) Period 01 Aug 2018 - 31 Aug 2018 Jackson County Employees' Retirement System S&P 500 Flagship Fund

Sector Contribution to Return Information Technology 1.76% Consumer Discretionary 0.64% Health Care 0.63% Financials 0.20% Real Estate 0.07% Telecommunication Services 0.06% Consumer Staples 0.04% Utilities 0.03% Industrials 0.03% Derivatives 0.02% Cash & Cash Equivalent 0.00% Residual* 0.00% Materials -0.01% Energy -0.21% Total 3.26% * Residual may arise in a variety of circumstances, including for example, when there are (i) timing differences in accounting for expenses and income, including but not limited to withholding taxes, tax reclaims, dividend income, security lending income and transaction costs, (ii) pricing differences, including but not limited to price type, price source, fair valuation or other special pricing events or (iii) methodology differences between total return and contribution-to-return calculations when significant inflows/outflows occur at the total portfolio and/or sector/county level. The foregoing is not meant to be a complete list of the circumstances under which residual may arise. Sector reporting based on the Global Industry Classification Standard ("GICS") which was developed by and is the exclusive property and a service mark of MSCI Inc. ("MSCI") and Standard & Poor's, a division of The McGraw -Hill Companies, Inc. ("S&P") and is licensed for use by State Street. S&P Dow Jones Indices and MSCI reclassified and elevated stock-exchange listed real estate companies (including listed equity REITs) from under the Financials Sector to a new 11th headline Real Estate Sector in the Global Industry Classification Standard (GICS®). The change became effective August 31, 2016.

State Street Global Advisors Report ID: 2270472.1 Published: 11 Sep 2018 Page 5 of 15 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

Sector Weights (expressed in USD) As of 31 Aug 2018 Jackson County Employees' Retirement System S&P 500 Flagship Fund Benchmark: S&P 500(R)

The mandate percentage is calculated based on the total value of the portfolio excluding cash and derivatives. Sector reporting based on the Global Industry Classification Standard ("GICS") which was developed by and is the exclusive property and a service mark of MSCI Inc. ("MSCI") and Standard & Poor's, a division of The McGraw -Hill Companies, Inc. ("S&P") and is licensed for use by State Street. S&P Dow Jones Indices and MSCI reclassified and elevated stock-exchange listed real estate companies (including listed equity REITs) from under the Financials Sector to a new 11th headline Real Estate Sector in the Global Industry Classification Standard (GICS®). The change became effective August 31, 2016.

State Street Global Advisors Report ID: 2270472.1 Published: 11 Sep 2018 Page 6 of 15 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

Sector Returns (expressed in USD) Period 01 Aug 2018 - 31 Aug 2018 Jackson County Employees' Retirement System S&P 500 Flagship Fund Benchmark: S&P 500(R)

Sector reporting based on the Global Industry Classification Standard ("GICS") which was developed by and is the exclusive property and a service mark of MSCI Inc. ("MSCI") and Standard & Poor's, a division of The McGraw -Hill Companies, Inc. ("S&P") and is licensed for use by State Street. S&P Dow Jones Indices and MSCI reclassified and elevated stock-exchange listed real estate companies (including listed equity REITs) from under the Financials Sector to a new 11th headline Real Estate Sector in the Global Industry Classification Standard (GICS®). The change became effective August 31, 2016.

State Street Global Advisors Report ID: 2270472.1 Published: 11 Sep 2018 Page 7 of 15 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

Characteristics and Risk Statistics (expressed in USD) As of 31 Aug 2018 Jackson County Employees' Retirement System S&P Midcap Index Fund Benchmark: S&P MidCap 400(R)

Characteristics Mandate Benchmark Risk Statistics Mandate Annual Dividend Yield (Trailing 12 Months) 1.51 1.51 Standard Deviation (Annualized 36 Months) 10.45 Estimated 3-5 Year EPS Growth 11.96 11.95 Beta (Trailing 36 Months) 1.00 Total Number of Holdings 401 400 Tracking Error (Trailing 36 Months) 0.02

Price/Book Ratio 2.35 2.35 Portfolio characteristics beta and standard deviation are calculated using SSGA month end return values. Characteristics are as of the date indicated, are subject to change, and should not be relied Price/Earnings Ratio (Forward 12 Months) 18 18.01 upon as current thereafter. Return on Equity (5 Year Average) 13.49 13.50 Weighted Average Market Cap (M) 6,003.04 6,009.88 Median Market Cap 4,335.08 4,340.64 Price/Earnings Ratio (Trailing 12 Months) 35.55 35.66 Price/Cash Flow (Weighted Harmonic Average) 12.24 12.24 Return on Equity (Trailing 12 Months) 14.41 14.39 Price/Sales (Weighted Average) 3.37 3.38

State Street Global Advisors Report ID: 2270472.1 Published: 11 Sep 2018 Page 8 of 15 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

Top Holdings (expressed in USD) As of 31 Aug 2018 Jackson County Employees' Retirement System S&P Midcap Index Fund Benchmark: S&P MidCap 400(R)

Security Mandate Benchmark Difference WELLCARE HEALTH PLANS INC 0.81% 0.81% 0.00% DOMINO S PIZZA INC 0.68% 0.68% 0.00% JACK HENRY & ASSOCIATES INC 0.66% 0.66% 0.00% KEYSIGHT TECHNOLOGIES IN 0.65% 0.66% -0.01% FORTINET INC 0.65% 0.66% -0.01% IDEX CORP 0.63% 0.64% -0.01% PTC INC 0.62% 0.62% 0.00% TELEFLEX INC 0.61% 0.61% 0.00% STEEL DYNAMICS INC 0.58% 0.58% 0.00% TRIMBLE INC 0.57% 0.57% 0.00%

The mandate percentage is calculated based on the total value of the portfolio excluding cash and derivatives.

State Street Global Advisors Report ID: 2270472.1 Published: 11 Sep 2018 Page 9 of 15 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

Sector Contribution to Return (expressed in USD) Period 01 Aug 2018 - 31 Aug 2018 Jackson County Employees' Retirement System S&P Midcap Index Fund

Sector Contribution to Return Information Technology 1.20% Health Care 0.59% Consumer Discretionary 0.34% Financials 0.33% Real Estate 0.25% Industrials 0.25% Consumer Staples 0.15% Derivatives 0.07% Energy 0.07% Utilities 0.03% Telecommunication Services 0.02% Cash & Cash Equivalent 0.00% Residual* 0.00% Materials -0.12% Total 3.19% * Residual may arise in a variety of circumstances, including for example, when there are (i) timing differences in accounting for expenses and income, including but not limited to withholding taxes, tax reclaims, dividend income, security lending income and transaction costs, (ii) pricing differences, including but not limited to price type, price source, fair valuation or other special pricing events or (iii) methodology differences between total return and contribution-to-return calculations when significant inflows/outflows occur at the total portfolio and/or sector/county level. The foregoing is not meant to be a complete list of the circumstances under which residual may arise. Sector reporting based on the Global Industry Classification Standard ("GICS") which was developed by and is the exclusive property and a service mark of MSCI Inc. ("MSCI") and Standard & Poor's, a division of The McGraw -Hill Companies, Inc. ("S&P") and is licensed for use by State Street. S&P Dow Jones Indices and MSCI reclassified and elevated stock-exchange listed real estate companies (including listed equity REITs) from under the Financials Sector to a new 11th headline Real Estate Sector in the Global Industry Classification Standard (GICS®). The change became effective August 31, 2016.

State Street Global Advisors Report ID: 2270472.1 Published: 11 Sep 2018 Page 10 of 15 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

Sector Weights (expressed in USD) As of 31 Aug 2018 Jackson County Employees' Retirement System S&P Midcap Index Fund Benchmark: S&P MidCap 400(R)

State Street Global Advisors Report ID: 2270472.1 Published: 11 Sep 2018 Page 11 of 15 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

Sector Returns (expressed in USD) Period 01 Aug 2018 - 31 Aug 2018 Jackson County Employees' Retirement System S&P Midcap Index Fund Benchmark: S&P MidCap 400(R)

State Street Global Advisors Report ID: 2270472.1 Published: 11 Sep 2018 Page 12 of 15 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

Relationship Management Team

Patrick Hearne Arman Palian Key Reporting Senior Client Service Manager Client Service Manager

Phone: 16176646823 Phone: 16176649105 Phone: 6176640834 Fax: 617 664 2024 Fax: Fax: [email protected] [email protected] [email protected]

State Street Global Advisors Report ID: 2270472.1 Published: 11 Sep 2018 Page 13 of 15 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

Important Information

Past performance is not a guarantee of future results. Performance returns for periods of less than one year are not annualized. Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.

Performance returns are calculated using time-weighted methodologies.

Per the Fund Declaration, performance shown may include or exclude the effect of investment management fees and may also net out administrative services fees paid to Recordkeepers. Please refer to the Fund Declaration for specific fee structure details, which is available via Client's Corner or SSGA Relationship Management.

Appreciation/depreciation includes dividends, interest and realized/unrealized gains and losses.

Projected characteristics are based upon estimates and reflect subjective judgments and assumptions. There can be no assurance that developments will transpire as forecasted and that the estimates are accurate.

Holdings, sectors, characteristics, and weights are as of the date indicated, are subject to change, and should not be relied upon as current thereafter. This information should not be considered a recommendation to invest in a particular sector or to buy or sell any security shown. It is not known whether the sectors or securities shown will be profitable in the future. Consistent with industry practice, equity characteristics are shown for the strategy's holdings as of the date indicated and screened for holdings that are deemed to be an outlier by SSGA's proprietary outlier screening methodology. The inclusion of these outliers would materially increase or decrease the equity characteristics shown.

All trademarks are the property of their respective owners.

The Top Holdings section represents the Top 10 classified securities relative to the benchmark. The percentage is calculated based on the total value of the portfolio, excluding cash, derivatives, and other/unclassified securities, if any.

The totals shown for ending market weights may not equal 100% due to rounding.

All returns in the analytical sections are gross.

The following information pertains only to clients that are invested in Common Trust Funds that participate in State Street's securities lending program: The Fund participates in an agency securities lending program sponsored by State Street Bank and Trust Company (the "lending agent") whereby the lending agent may lend up to 100% of the Fund's securities, and invest the collateral posted by the borrowers of those loaned securities in a collateral reinvestment fund(the "Collateral Pool"). The Collateral Pool is not a money market fund registered with the U.S. Securities and Exchange Commission or FDIC-insured bank deposits or otherwise guaranteed by SSGA or State Street Bank and Trust Company or any of their respective affiliates and investors may lose money in the securities lending program. The Fund compensates its lending agent in connection with operating and maintaining the securities lending program. SSGA acts as investment manager for the Collateral Pool and is compensated for its services. The Collateral Pool is managed to a specific investment objective. For more information regarding theCollateral Pool refer to the "US Cash Collateral Strategy Disclosure Document." Securities lending programs and the subsequent reinvestment of the posted collateral are subject to a number of risks, including the risk that the value of the investments held in the Collateral Pool may decline in value, be sold at a loss or incur credit losses. In the event of a material default in the Collateral Pool, the investor would incur losses and the Fund would incur its pro rata share of the loss. Because the net asset value of the Collateral Pool is subject to market and other

State Street Global Advisors Report ID: 2270472.1 Published: 11 Sep 2018 Page 14 of 15 Performance and Analysis As of 31 Aug 2018 Jackson County Retirement System

conditions it will fluctuate and may decrease in the future. If the value of Collateral Pool units is not $1.00 at the time you redeem your investment in the Fund your redemption proceeds will reflect the lower mark-to-market value of the Collateral Pool units.

For more information on SSGA's securities lending program and the Collateral Pools, including the "SSGA Securities Lending Program Disclosure", the "US Cash Collateral Strategy Disclosure Document" and the current factsheets for the Collateral Pools (which include the mark-to-market unit prices) are available on Client's Corner and also available upon request from your SSGA Relationship Manager.

Any non-registered commingled account, fund or common trust fund may use over-the-counter swaps, derivatives or a synthetic instrument (collectively "Derivatives") to increase or decrease exposure in a particular market, asset class or sector to effectuate the fund's strategy. Derivatives agreements are privately negotiated agreements between the fund and the counterparty, rather than an exchange, and therefore Derivatives carry risks related to counterparty creditworthiness, settlement default and market conditions. Derivatives agreements can require that the fund post collateral to the counterparty consistent with the mark-to-market price of the Derivative. SSGA makes no representations or assurances that the Derivatives will perform as intended.

This material is classified as limited access and is intended solely for the private use of SSGA clients and their designees and is not intended for public dissemination.

For disclosures, monthly fund holdings for ERISA Commingled and CTF investors, and additional information relating to your investments, please visit our Client's Corner website at www.ssga.com. Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell securities.

State Street Global Advisors Report ID: 2270472.1 Published: 11 Sep 2018 Page 15 of 15 Jackson County Employees' Retirement System August 31, 2018 International Portfolio Monitoring Report (continued)

Registration Case Country Financial Interest Relevant Period Deadline Yowie Group Limited Australia No loss January 01, 2015 - March 31, 2018 Open #15 JACKSON COUNTY EMPLOYEES’ RETIREMENT SYSTEM P O L I C Y R E S O L U T I O N

Adopted: February 28, 2008 Re: Appointment of Public Member to Board of Trustees Revised: June 17, 2014

WHEREAS, the Retirement Board of Trustees (“Board”) is vested with the general administration, management and operation of the Retirement System and for making effective the provisions thereof, and

WHEREAS, Section 27 of the Retirement System Bylaws provides for the composition of the Board of Trustees, and

WHEREAS, Bylaws Section 27 specifically provides for the appointment of an individual to the Board of Trustees (herein sometimes referred to as the “Public Member Trustee”), as follows:

An elector of Jackson County who is neither a Member, Retirant nor Beneficiary of the Retirement System, shall be appointed for a one-year term by mutual agreement of the three representatives elected by Member employees and the three representatives appointed by the Chairperson of the Board of [County] Commissioners. Such appointment shall be made annually with the term commencing July 1st or within sixty days of any vacancy in such position and

WHEREAS, Section 27(2)(c) of the Bylaws, amended May 17, 2018, provides: “In order to be eligible for appointment pursuant to this paragraph, an individual must possess expertise and work experience in matters concerning (i) finance and investing, and/or (ii) managing, operating, and administering a defined benefit pension plan, and

WHEREAS, Section 27 of the Bylaws is otherwise silent concerning the procedure for the appointment of the Public Member Trustee to the Board of Trustees, and

WHEREAS, the Board desires to formalize its appointment procedure for the appointment of said individual to the Board of Trustees, now therefore be it

RESOLVED, that the Board of Trustees hereby establishes and formalizes its procedure for the appointment of the Public Member Trustee to the Board as follows:

a. The vacancy for the Public Member Trustee on the Board shall be advertised in a local newspaper of general circulation for one day.

b. Individuals seeking appointment to the Board as the Public Member Trustee shall complete a Request for Appointment form, which shall be made available in the office of the Pension Coordinator.

c. The Public Member Trustee shall be appointed by majority vote of the Board of Trustees at the regular meeting of the Board in June of each year.

d. The Public Member Trustee shall be paid the per diem rate of $35 per half day for attending regular and special, committee and sub-committee meetings of the Board of Trustees. The term “half day” is defined to mean 4 hours. If a meeting is less than 4 hours in duration, the Public Member Trustee still will be paid the $35 per diem amount. If a meeting is longer than 4 hours in duration, then the Public Member Trustee will be paid a per diem amount of $70.

and it is further

RESOLVED, that a copy of this Resolution be posted on the Jackson County Employees’ Retirement System webpage in the normal manner.