HomeMy WebLinkAbout2022-03-24-RB-min RECEIVED
022 01 Juin, 58 Ilain't
TOWN CLERK
Minutes of the March 24, 2022 Retirement Board meeting: LEXINGTON MA
Present: Robert Cunha,Joseph Foley, Carolyn Kosnoff, Marguerite Oliva, and Jim Condon
Absent: Alan Fields, Frederick Weiss
The Lexington Retirement Board met remotely through Zoom tele-conferencing during the
Covid-19 Pandemic. The Town Clerks Office posted the meeting, which included the
information for any interested party to join the call. Robert Cunha, Joseph Foley and Carolyn
Kosnoff were present for this meeting. Fred Weiss and Alan Fields were unable to attend.
Chairman Robert Cunha called the meeting to order at 8:30 am.
The Board accepted the 033122 Warrant and the March payroll. The February minutes and
January financials were reviewed and approved.
Robert Cunha reviewed the March agenda will the Board members and staff in attendance. A
Military buyback request was put before the Board for approval. Mr. Michael Donahue
requested to purchase four (4) years of Military time over the course of ten (10) years. Total
cost would be $21,546.68. A financial issue is why Mr. Donahue requests the lengthy buyback.
Robert Cunha made the motion to approve the buyback over ten (10) years, which was
seconded by Joseph Foley, and approved by Carolyn Kosnoff. Mr. Donahue will be notified on
this approval as to when buyback deductions will commence.
The matter regarding Joseph O'Leary matter is still pending. There has been no word from the
court system or the Law Offices of Michael Sacco as to where this matter stands.
The Board was presented an issue regarding a retiree having been charged too little for
insurance over the past three (3) years. This stems from an issue with how the computer
system in the Retirement Office books health plans and the HR Department in Town and how
they monitor plans. Due to miscommunication between the two departments, Human
Resources requests we ask the retiree to payback the amount which should have been paid.
The Retirement Office states it would be unfair to charge the retiree roughly$1,000.00 for a
mistake they had no wrongdoing in. The matter has been tabled until the April meeting. This
will provide the two departments more time to figure out what would be best in such a rare
case.
The notice of Claim and Demand for payment in the Robert Magarian matter is still unresolved
as of this Board meeting on Thursday, March 24, 2022. The Law Offices of Michael Sacco will
update us as information becomes available.
A brief discussion was held amongst Board members and staff regarding a more suitable time
frame to mail the Annual Benefit Verification forms to our retirees. This comes from a retiree
stating how difficult it is for retirees to go out in January and February to have the form
notarized during rough winter conditions. The Retirement Board staff asked if it would be
possible to mail the annual mailing to April. Our Board members will permit this change,
however, are concerned retirees will be nervous when the form isn't received to them when
they usually expect. Retirement staff will notify retirees on the year end letter of this change.
Board members were reminded to continue with their PERAC trainings as we exit the first
quarter of 2022. Memo #6. Also, the extension of Open Meeting Waivers has been extended
to 07/15/2022. Memo#9.
Steven MacLellan, Henry Jaung, and Gloria Hazard presented the Meketa update at 8:45 am.
The portfolio balance as of February 28, 2022 was $214,534,409.00, down $4.7m from the
January report. The markets continue to remain unstable. Omicron virus and supply issues are
some of the factors creating instability. The invasion of Ukraine by Russian forces on 02/24/22
has also had a ripple effect on the entire economy. Fixed and Global equity remain weak, even
into the 1St two weeks of March. Fidelity, KAR, and Matthews have seen the biggest hits, down
roughly 4%for the month. Global equity is performing somewhat flat, and not taking as big a
hit. Firms such as Wellington Enduring have held on the past month, posting just a -0.3%.
Steve mentioned our portfolio is relatively flat right now, which isn't the worst thing
considering what is going on in the world today. We aren't missing any investment
opportunities at this time. Nothing out there to grab and invest, other than commodities and
natural resources. Those already make up 3% of the portfolio and would stave off anymore
losses through this rough patch. It was noted the portfolio only has 0.01% of Russian Security
Exposure at this time. Russia has been dropped from all major securities indexes. The Meketa
team wrapped up their presentation at 9:05 am.
Geoff Skillings and Scott Brymar presented the Acadian update at 9:10 am. Geoff reported on
new staffing levels and promotions within the firm. He briefed us on the success they had in
2021. Assets Under Management have grown by$9b since February 2021. Currently, total
AUM are $117b at Acadian. The equity market has been a strong springboard for their
portfolio. Even the non-US strategy seems to have done well through 2021. Geoff mentioned
they continue to rely on their four main drivers for success: Value, Quality, Growth, and
Technical aspects when selecting a company. Each one contributes in its own way. These
attributions help each other in the sense that if one is underperforming, the other could be
outperforming. Geoff then concluding with the different allocations in our fund. He mentioned
we have a strong, diverse portfolio and feels we will be back on track as 2022 moves along. His
presentation wrapped up at 9:40 am.
Jeff Kusmierz presented the RhumbLine update at 9:42 am. He began with some updates on
the organizational chart in the firm. RhumbLine currently has $96.2b in AUM's, which includes
119 public pension funds. Jeff then mentioned the performance in 2022 has started quite rocky.
The portfolio is down 8.22%thru February 2022. The only sector with a positive return this
year has been Energy, up 25.12%. The next sector would be Consumer Staples at -0.26%Jeff
mention the portfolio has been in the positive at 13.70% over past 12 months. Since inception,
the overall performance has been 14%. The initial contribution occurred on May 8, 2013 for
$5.1m, with three (3) additional contributions totaling $11.4m. The market value on this
investment now stands at $35.1m on February 28, 2022. He spoke of their top 10 holdings in
the portfolio and how they have fared in 2022. The top 10 holdings make up 25.37% of the
entire portfolio. Jeff opened the floor for questions, then wrapped up the presentation at
10:00 am.
The last reported update on Fossil Fuel exposure can be found in the January 2022 Meketa
presentation. As of December 31, 2021, the Fossil Fuel exposure rate was 3.9%
Robert Cunha motioned to adjourn the meeting at 10:05 am, which was seconded by Carolyn
Kosnoff, and approved by Joseph Foley.
The next Retirement Board meeting will be held on Zoom -Thursday, April 28, 2022 at 8:30 am.
Future Board meeting dates: Thursday, May 26, 2022 &Thursday, June 23, 2022
.... ,ABSENT ....
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
ABSENT
Frederick Weiss, Appointed Member