Investment Management Subcommittee of the
Retirement Plan Advisory Committee
March 27, 2012

A meeting of the Investment Management Subcommittee of the NSHE Retirement Plan Advisory Committee was held on March 27, 2012 at the University of Nevada Las Vegas Lied Library.

Present:           Kent Ervin, Chair; Michelle Kelley; and Pat La Putt
Also Present:   George Dombroski and Cynthia Hunt (NSHE); Dan Pawlisch and Ruth Schau (Hewitt EnnisKnupp).

The meeting was called to order at 2:35 pm.

There was a review of the RPAC meeting that had taken place immediately preceding the Subcommittee meeting. To aid in comprehension in future presentations to constituent groups, Hewitt EnnisKnupp was asked to slim down the presentation and to provide an FAQ and some definitions. The subcommittee will review the changes via e-mail.

Ervin, Kelley, La Putt, and Stone will confer via telephone regarding timings of meetings to give the presentation to various interest groups. Hunt will assist with scheduling. Hunt and Stone will consider placing an informational item on the Board of Regents agenda.

There was an agreement that the May 14 Investment Management Subcommittee meeting would be a face to face meeting in Reno. Hewitt EnnisKnupp indicated they would need about 1-2 hours to review the investment performance report at the meeting. The Subcommittee meeting in the morning would be followed by a full RPAC meeting via video conference in the afternoon.

The Committee asked the RPA Manager to send out reminders with RSVPs to the Committee two weeks before the meeting.

There was a follow up discussion from the February 22-23 meeting about communications to investors in the Fidelity Magellan Fund. There was general agreement that the communication might take the shape of an AON “In Brief” publication with a cover letter from NSHE. Hewitt EnnisKnupp was asked to draft a cover letter and provide it to Kelley and La Putt. . Further discussion of any recommended action on the Magellan fund was deferred to the May 14 meeting.

Pawlisch informed the Subcommittee that he had already met with TIAA-CREF to develop an understanding about the performance monitoring guidelines and will move next to meet with Fidelity and VALIC.

Ervin reiterated his displeasure with the misinformation that had been provided by VALIC at the February meeting regarding compensation for annuity advisors. There was a discussion about the prospects for negotiations on excess revenue reimbursement arrangements with the current vendors. It was recommended that  Hewitt EnnisKnupp and Henry Stone attempt to negotiate these arrangements with all three vendors. Cessation of the extra commissions on annuity assets might be a point of negotiation with VALIC.

The Subcommittee agreed that a discussion about allocation of dividends flowing from reimbursement of excess revenues from TIAA-CREF and Fidelity should be on the agenda for the May 14 RPAC meeting.

A decision was made to defer the participant satisfaction survey until September. Dombroski was asked to send a test survey to the Subcommittee and Hewitt EnnisKnupp for critical review and feedback.

There was a review of follow-up items with the vendors from the February meeting minutes. Dombroski was asked to coordinate monthly status checks with the Benefits Managers.

There was agreement to discuss how NSHE will comply with fee disclosures at the May meeting.

The meeting was adjourned at 3:30 pm.

 Prepared by:  George Dombroski, Retirement Plan Alternative Manager