HomeMy WebLinkAbout20243423.tiffMinutes
November 7, 2024
Weld County 401(k) Savings and 457
Deferred Compensation Plan
Investment Committee Meeting
Meeting Attendees
Weld County
Cheryl Pattelli
Chris D'Ovidio
Brigitte Grimm
Jill Scott
Allison Palmer (absent)
Alera Group Principal
Brad Shaps Andrew Albers
Bob Janson Kyle Dailey
Rebecca Szewczyk
Prior Meeting Minutes
Brigitte made a motion to approve the previous quarter's meeting minutes and Jill
seconded the motion. The Committee unanimously approved the minutes from the
previous meeting.
Investment Review
Alera Investment Advisors prepared a Monitor Report for the quarter ending 9/30/24.
As of 9/30/24 the 401(k) Plan and 457 Plan had assets of $19,542,389 and
$11,658,105, respectively. There are two funds on the Watch List.
Bob reviewed the investment performance section of the report. He also reviewed
the criteria used to monitor the investments.
The Principal U.S. Property fund is on the watch list for four quarters due to
performance factors. It has failed the 1 -year return criterion for six quarters, the 3 -year
return criterion for one quarter, the 5 -year return criterion for four quarters and the
Sharpe Ratio criterion for three quarters. Kyle explained the difference between a
traditional REIT fund and this fund, noting that this fund holds actual properties, and
that pricing lags in performance as it is not available on a daily basis like publicly
traded funds. Kyle also noted that there is currently a restriction which must be lifted
by July 2025. Bob reviewed alternatives in a report that was prepared by Alera. After
discussion, the Committee agreed to hold off for one to two more quarters.
The Principal MidCap Growth fund is on the watch list for one quarter due to
performance factors. It has failed the 1 -year return criterion for three quarters, the 3 -
year return criterion for one quarter, the 5 -year return criterion for two quarters and
the Sharpe Ratio criterion for one quarter. Bob noted that because of its strong past
performance and given it is only on the watch list for one quarter, Alera is not
recommending any changes at this time.
Bob briefly reviewed the remaining funds in the report, and there was a discussion
about the current target date fund suite. Cheryl asked if all Target Date Suites would
have a similar risk as the American Fund Suite. Bob reviewed a risk/return
comparison in a target date analysis report and explained how the American Funds
approach differs from other Target Date suites. The committee agreed that no
action is needed at this time.
Principal Plan Review
Drew explained the SECURE 2.0 Act emergency expense withdrawal optional
provision. Drew will confirm how repayment and tracking would be handled and
follow up with the Committee.
Fee Benchmark Review
Brad noted that the investment, recordkeeping and advisory fees are reasonable
from all perspectives.
Employee Education
The Committee noted that the topic of rollovers could be included in education next
year given the questions that Drew received at the benefits fair recently. Drew will
send flyer along with one to promote increasing contributions. Alera will send dates
for a live webinar in first quarter of 2025.
Next Meeting
The meetings in 2025 will be on the first Wednesday of the second month of the
quarter at 3pm MT.
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