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VACo / VML Pooled OPEB Trust

VACo / VML Pooled OPEB Trust. Annual Report of the Program Administrator 2010. VACo / VML OPEB Trust Accounts. Assets. $220.1 MM. $156.6 MM. $91.0 MM. $ Millions. Key Board Actions. Added 5% allocation (Portfolio I) to Hedge Fund of Funds – selected Grosvenor Multi-Strategy Fund

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VACo / VML Pooled OPEB Trust

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  1. VACo/VML Pooled OPEB Trust Annual Report of the Program Administrator 2010

  2. VACo/VMLOPEB Trust Accounts

  3. Assets $220.1 MM $156.6 MM $91.0 MM $ Millions

  4. Key Board Actions • Added 5% allocation (Portfolio I) to Hedge Fund of Funds – selected Grosvenor Multi-Strategy Fund • Added 23% allocation to Active Fixed Income Manager – selected PIMCO Total Return Fund • Conducted Fund Manager due diligence interviews with CS McKee and Artio Global Investors • Created a second investment portfolio

  5. Second Portfolio Added • Porfolio II provides another option for Local Finance Boards to consider in investing their OPEB assets. • Expected rates of return: Portfolio I – 7.5% Portfolio II – 6.5% • Portfolio II is constructed with an alternatively weighted asset allocation but drawing from the same fund components as Portfolio I. • Transfers between Portfolios are allowed once a year. Local Finance Boards must provide notice by April 1. Transfer is effective on July 1.

  6. Education & outreach • Staff has conducted briefings with over 75 localities in past year. • Larger, stronger credits have generally decided to address their OPEB liabilities • Smaller, less strong credits are often still assessing: • Economic conditions make funding a challenge • Cumulative liability starts out small, grows larger over time • Some looking at revising benefits

  7. Actions to assist smaller localities • Alternate fee schedule • Offers lower upfront membership fee combined with higher annual fee for first five years • Participants select: Original fee schedule: $5,000 up-front plus 0.12% per year or Alternative fee schedule: $1,500 up-front plus 0.25% per year • GASB Help – Online Actuarial Services • Provides an online alternative to commissioning a complete actuarial study – especially for employers with < 100 plan participants • Provided by Milliman Inc. • Fees start at around $1,600 for two-years of access

  8. Actuarial Services • VML/VACo Finance is partnering with Milliman Inc. to provide deeply discounted actuarial studies. • VML/VACo Finance provides a no-obligation fee quote in advance. Request form may be accessed on website. • An RFP is not required.

  9. VML/VACo Finance For more information: Robert Lauterberg, Managing Director rlauterberg@valocalfinance.org Steve Mulroy, Deputy Director smulroy@valocalfinance.org (804) 648-0635 valocalfinance.org

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