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TVARS Board Holds Quarterly Meeting

TVA Retirement System board of directors held its regular, quarterly meeting on Thursday, March 3, 2016. The board heard reports from the Investment, Audit, Election and Retirement committees.

Each TVARS board director serves on one or more of the four committees. Committee appointments are made on an annual basis. Unless otherwise noted, all decisions were unanimous.

Investment Committee

Wilshire Associates, the system’s investment consultant, reviewed investment performance for the period ended December 31, 2015. Performance for the quarter was positive (1.7 percent) compared to the system policy benchmark of 1.3 percent. For the 12-month period ended December 31, 2015, the system was down -2.6 percent.

System assets, fiscal year-to-date, have declined approximately $50 million with benefit payments of approximately $170 million. The system’s annualized returns over the past three-, five- and 10-year periods have been 5.5 percent, 6.2 percent and 4.9 percent, respectively.

The Board reviewed the results of a new public real asset allocation, including risk-adjusted asset weights, with Wilshire Associates and voted to approve a new allocation policy for the asset class. In addition, the board reviewed the results of a fixed income structural analysis and voted to transition portions of the fixed income allocation into a conservative core portfolio.

Other topics discussed during the Investment Committee meeting:

  • 401(k) Investment Policy Statement amendments
  • Managed volatility structural analysis
  • Private equity performance update
  • 401(k) Plan performance review
  • Capital market assumptions review
  • Securities lending
  • Master Trustee request for proposal
  • Funded status review
  • Asset transfers
  • Due diligence meetings with current and potential investment managers
  • Investment manager compliance

Audit Committee

The board received an update from Crowe Horwath LLP, external auditor for TVARS, regarding the current audit of financial statements for fiscal year 2015.

Election Committee

The board approved a three-year contract for VR Election Services to conduct an annual election for the director position.

Retirement Committee The Retirement committee had no action items on the agenda.

Questions

Anyone with questions should contact Retirement Management by e-mail at retsvcs@tva.gov or by phone at 865-632-2672, or 800-824-3870 (toll-free).

 

 

 

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