Agenda Retiree Health Care Board of Trustees Regular Meeting Monroe County Board of Commissioners Chambers Room Monday, September 25, 2017 – 3:00 P.M

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Agenda Retiree Health Care Board of Trustees Regular Meeting Monroe County Board of Commissioners Chambers Room Monday, September 25, 2017 – 3:00 P.M Retiree Health Care Board of Trustees Regular Meeting September 25, 2017 Page 1 AGENDA RETIREE HEALTH CARE BOARD OF TRUSTEES REGULAR MEETING MONROE COUNTY BOARD OF COMMISSIONERS CHAMBERS ROOM MONDAY, SEPTEMBER 25, 2017 – 3:00 P.M. 125 E. SECOND STREET MONROE, MI 48161 (734) 240-7003 I. CALL TO ORDER II. ROLL CALL III. PLEDGE OF ALLEGIANCE IV. APPROVAL OF AGENDA V. APPROVAL OF MINUTES (08/28/17 Regular Meeting) VI. PUBLIC COMMENT VII. COMMUNICATIONS— 1. Boyd Watterson GSA Fund, LP—Natural Disaster Update VIII. OLD BUSINESS IX. NEW BUSINESS 1. Presentation by Money Manager, Schafer Cullen – International Dividend, Nick Petrovich 2. Monroe County Retiree Health Care Trust Investment Report as of August 31, 2017 X. PUBLIC COMMENT XI. MEMBERS TIME XII. NEXT MEETING – October 23, 2017 at 3:00 p.m. XIII. ADJOURNMENT The County of Monroe will provide necessary auxiliary aids and services, such as signers for the learning impaired and audiotapes of printed materials being considered at the meeting to individuals with disabilities at the meeting upon one week’s notice to the County of Monroe. Individuals with disabilities requiring auxiliary aids or services should contact the County of Monroe by writing or calling the following: Human Resources – 125 East Second Street, Monroe, MI 48161 – Voice (734) 240-7295 and TDD (734) 240-7300 Retiree Health Care Board Regular Meeting Minutes August 28, 2017 Page 1 RETIREE HEALTH CARE BOARD OF TRUSTEES MINUTES August 28, 2017 Regular Meeting I. The Regular Meeting of the Retiree Health Care Board of the Trustees of the Monroe County Board of Commissioners was held in the Board of Commissioners Chambers on Monday, August 28, 2017. Chairman Bob Neely, called the meeting to order at 3:00 p.m. II. ROLL CALL Roll call by Clerk as follows: Trustees Present: Michael Bosanac, Bob Neely and Kay Sisung Trustees Absent: David Rever and Gary Wilmoth (excused) Michael Cho, Brian Brice and Amy Cole of Morgan Stanley/Graystone were also in attendance. A quorum being present, the Board proceeded to conduct business. III. PLEDGE OF ALLEGIANCE Michael Cho led the Pledge of Allegiance. IV. APPROVAL OF AGENDA Motion by Michael Bosanac, supported by Kay Sisung to approve the August 28, 2017 agenda as presented. Voice vote taken. Motion carried. V. APPROVAL OF MINUTES (07/24/17 Regular Meeting and 8/15/17 Special Meeting) Motion by Kay Sisung, supported by Michael Bosanac to approve the July 24, 2017 Regular Meeting minutes as presented and waive the reading thereof. Voice vote taken. Motion carried. Motion by Michael Bosanac, supported by Kay Sisung to approve the August 15, 2017 Special Meeting minutes as amended and waive the reading thereof. Voice vote taken. Motion carried. VI. PUBLIC COMMENT – None VII. COMMUNICATIONS—None VIII. OLD BUSINESS – None Retiree Health Care Board Regular Meeting Minutes August 28, 2017 Page 2 IX. NEW BUSINESS 1. Presentation by Money Manager, Renaissance —International Equity, Michael Fedorovich Top Contributors YTD o Allocation: Sector-Overweight Information Technology o Allocation: Country- Overweight Hong Kong o Selection: Sector-Health Care & Consumer Discretionary o Selection: Country- Canada & United Kingdom Top Detractors YTD o Allocation: Sector-Overweight Materials o Allocation: Country- Overweight Ireland o Selection: Sector-Information Technology & Telecommunication Services o Selection: Country-Denmark & Hong Kong Outlook Positives: . Valuation of global Markets favors non-U.S. stocks even with the outperformance of international stocks this year. As an example, the FactSet World x US Index trailing Price to Earnings ratio stands at a 19% discount to the Fact Set US Index compare to an historical 11% discount over the previous ten years. Foreign exchange headwinds, which had been the bane of US –based foreign market investors since 2013, have turned into tailwinds, and we foresee continued strength in foreign currencies relative to the US dollar. Negatives: . Central Banks may become less accommodative as global growth improves . Risks to the market’s upbeat tone include geopolitical uncertainty, terrorism and how deftly central bankers can control economic growth while keeping inflation in check Positioning Recent additions to the portfolio were in the Consumer Discretionary and Industrials sectors. We continue to review out Energy sector positioning in light of OPEC oil production cuts and increased shale production Out overweight in emerging markets is focused on capitalizing on rising disposable incomes. These rising incomes should result in high levels of consumption especially within the Asia-Pacific region. Top 4 Sectors—Industrials, Financials, Information Technology, Consumer Discretionary (as of 6/30/17) Currently the Biggest Opportunities are in China and Biggest Threat is in Korea Energy? Energy companies that they are seeing do not have the better overall characteristics Retiree Health Care Board Regular Meeting Minutes August 28, 2017 Page 3 2. Monroe County Retiree Health Care Trust Investment Reports—Michael Cho a. Michael Cho explained the Monthly Investment Report as of July 31, 2017 Account value as of July 31, 2017 = $52,949,299.55; increase from June 30, 2017 = $794,230.52. MTD = 1.52%; YTD = 8.55%. Recommendation—Sell off Wisdomtree Japanese Dollar Hedge and put the proceeds into International Managers. $500,000 to Shafer Cullen and $861 remain to renaissance Motion by Michael Bosanac to follow Investment Consultant’s recommendation and cash out Wisdomtree in the amount of $1,361,055.20 and reallocate $861,055.20 to Renaissance International and $500,000 to Shafer Cullen International, effective as soon as the transactions can be made, supported by Kay Sisung. Voice vote taken. Motion carried. b. Quarterly Performance report as of June 30, 2017—Michael Cho explained the Quarterly Performance Report—Current quarter 2.48% v 2.53% benchmark; YTD 7.13% v 6.90% benchmark c. Quarterly Watch List—ClearBridge Mid Cap is on the Watch list 3. Discussion of the potential to structure retiree health care trusts under a single aggregated account for managing assets for lower cost investment opportunities for lower market value trusts. Michael Bosanac led the discussion as to whether there is any value in doing aggregated approach with Road Commission VEBA and Mental Health. They have expressed interest to see if it’s possible to do that. Auditor says it can be done. Next step is a conversation with Legal firm, Dykema. If this is done they would be moving their trust assets under Retiree Health Care investment program. Both of them together equal about $5,000,000. It would be on an allocated basis. Pro rata share of whatever return we get at the end of the year. Their money would be pooled with ours and invested accordingly. Benefit is for the smaller organizations to get a reduced fee and maybe some buying power too. PUBLIC COMMENT –None X. MEMBERS TIME– Michael Bosanac—Mayl not be here for the September 25 meeting Kay Sisung— Pass Bob Neely—Thank you to Mike Cho and his associates for your years of dedicated service to us. We appreciate everything that you’ve done for us. It has been a very difficult decision. XI. NEXT MEETING—September 25, 2017 at 3:00 p.m. XII. ADJOURNMENT Motion by Michael Bosanac, supported by Kay Sisung to adjourn. Chairman adjourned the meeting at 3:39 p.m. with no further business. SCHAFER CULLEN CAPITAL MANAGEMENT International High Dividend Value ADR 2nd Quarter 2017 645 Fifth Avenue • New York, NY 10022 • T (212) 644.1800 • F (212) 593.4275 • www.schafer-cullen.com Organization SCHAFER CULLEN CAPITAL MANAGEMENT | Page 2 | INTERNATIONAL HIGH DIVIDEND VALUE ADR STRATEGY Schafer Cullen Capital Management, Inc. Registered investment advisor established in 1983 Independent 100% employee owned firm Value Investor Disciplined, Experienced, Research-driven Headquarters New York, New York Assets Under Advisement 1 $19.6 Billion as of 06/30/2017 SCHAFER CULLEN CAPITAL MANAGEMENT | Page 3 | INTERNATIONAL HIGH DIVIDEND VALUE ADR STRATEGY Schafer Cullen Capital Management Assets by Strategy as of June 30, 2017 Strategy Strategy Description Established AUA 1 U.S. Large Cap Equity portfolio with up to 30% ADR ownership investing in stocks High Dividend Value Equity trading at low earnings multiples with high 1994 $11.9 Billion absolute dividend yield and catalysts for future dividend growth. Non-U.S. Large Cap equity portfolio International High Dividend investing in stocks trading at low earnings 2004 Value Equity multiples with high absolute dividend yield $5.6 Billion and catalysts for future dividend growth. Emerging Markets equity portfolio investing Emerging Market High in stocks trading at low earnings multiples 2005 Dividend Equity with high absolute dividend yield and $762 Million catalysts for future dividend growth. U.S. Large Cap Equity portfolio with up to 30% ADR ownership investing in stocks Enhanced Equity Income trading at low earnings multiples with high 2010 $903 Million absolute dividend yield and writing covered call options of between 25-40%. U.S. all-cap equity portfolio with up to 30% ADR ownership investing in stocks trading Value Equity at low earnings multiples with earnings 1983 $358 Million growth catalysts. 1Includes model program assets of $7.8 billion as of 06/30/2017. SCCM provides models on the following SMA strategies: High Dividend, International High Dividend, Emerging Markets High Dividend, Value Equity, and Global High Dividend. SCHAFER CULLEN CAPITAL MANAGEMENT | Page 4 | INTERNATIONAL HIGH DIVIDEND VALUE ADR STRATEGY Cullen Capital Management, LLC Cullen High Dividend Equity Fund Share Class Ticker Cusip Number Min. Investment Net Expense Ratio Retail Share (Class A) CHDEX 230001208 $1,000 1.00% Institutional Shares (Class I) CHDVX 230001406 $1,000,000 0.75% The Funds' investment objectives, risks, Class C Shares CHVCX 230001307 $1,000 1.75% charges and expenses must be considered Cullen International High Dividend Fund carefully before investing. The prospectus contains this and other important Share Class Ticker Cusip Number Min.
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