Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Investments Operations topic
No spam. Unsubscribe anytime.
Pasadena trustees approve audit arrangement, pooled-cash draws and rebalance to real estate
Summary
The board approved a revised audit arrangement letter with MGO, authorized pooled-cash amounts for July and August, and approved a $1 million rebalance from a high-performing hedge allocation into an ARA core real estate fund; staff reported preliminary assets and performance figures.
Trustees approved several routine but consequential investment-and-administration items at the July 6 meeting. The board approved a revised arrangement letter for auditing services with Macias, Gini & O'Connell (MGO) and noted that counsel had caught contract differences related to confidentiality and data control; the fee for the audit was presented as $56,758 and was already included in the adopted budget.
On investment operations, staff reported pooled assets of roughly $104.7 million and a preliminary fiscal year-to-date return of about 8.9% (staff emphasized the figure is preliminary pending final valuations). The board authorized pooled-cash draws of $975,000 for both July and August and approved a rebalance that moves $1,000,000 from an outperforming hedge/magnitude allocation into the ARA core property fund to bring the real-estate allocation closer to target.
Staff also updated trustees on transactions: about $800,000 was raised for pooled cash in June, drawn largely from international equity and Vanguard short-term investment-grade funds, and the board received an Invesco redemption of roughly $110,000 with remaining exposure in that fund just under $7,000,000. The board discussed the mechanics of redemptions (priority lanes and queueing) and the tradeoffs of selling high-performing allocations to buy underweight asset classes.
Other administrative items approved included authorization for a staff member to attend virtual CalPERS training and acceptance of the transaction summary and real-asset outlook. Staff reminded trustees there is no meeting in August and previewed September items including two supported IDR hearings and the annual closed-plan review.
