HomeMy WebLinkAbout2022-07-28-RB-minMinutes of the July 28, 2022 Retirement Board meeting:
Present: Robert Cunha, Joseph Foley, Alan Fields, Fred Weiss, Carolyn Kosnoff, Marguerite Oliva & Jim
Condon
Absent: None
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, Alan Fields,
Fred Weiss and Carolyn Kosnoff were present for this meeting. Chairman Robert Cunha called
the meeting to order at 8:30 am.
The Board accepted the 072922 Warrant and the July payroll. The June minutes and May
financials were reviewed and approved.
Robert Cunha reviewed the July agenda with all Board members and staff in attendance.
It was noted the Vanguard balance is $23,366,128 on June 28, 2022. We will be receiving a
distribution of $125,787 from Angelo Gordon on July 29, 2022.
The office has not received any updates regarding the matters pertaining to Joseph O’Leary or
Robert Magarian. Board staff will contact Michael Sacco, Esq. for any new information prior to
the next Board meeting.
Stephen MacLellan presented the Meketa update at 8:40 am. The portfolio balance as of June
30, 2022 was $192,304,524.00, down $13.2m from the May report. The markets continue to
struggle without much rebounding over the last 30 days. Domestic and International equity
asset classes took the best hit. Domestic assets now down 24.9% YTD, while International is
down 19.7% YTD. The second quarter to date turned out to be worse off than first quarter 22’.
Overall, Total Equity sector is down 20.3% YTD. Fixed Income continues to be flat, yet not
hurting the portfolio. Golub remains the lone bright point in this asset class, posting a positive
3% in second quarter, and up 5.1% YTD. Steve noted defaults on loans remains low, and
coupons are close to resetting. The Hedge Fund, despite being down around 4%, remains
defensive in the portfolio.
Stephen moved to the Clean Energy portion of the presentation. Fossil Fuel exposure remains
at approximately 5%. He mentioned to the Board a thought of investing proceeds from the
Fidelity & Rhumbline redemption into a standard Russell 1000 Value index or a proposed ALPS
Clean Energy ETF. Meketa will do research to see if there is a viable option, however, it could
have legal implications investing with an ETF. He mentioned the Private Market Fossil Fuel
sector, which could provide the plan with exposure to green energy companies. Wellington
Climate Innovation was mentioned. The focus was on software and solutions form climate and
not real assets. A few other firms were named as well. See page 37 in the Meketa presentatio n
for a list and description. The Board will discuss some options at the next Board meeting.
Steve’s presentation wrapped up at 9:10.
Melissa Moesman and Mike Hickey presented the Fidelity review at 9:10 am. Mike gave an
overview of where Fidelity is at this point with staffing levels and investment philosophy going
forward. He stated the portfolio performance to date has been disappointing, as are most firm
books to date. They remain in line with the index, yet tough to manage funds during this
unprecedented wild ride in the markets. He spoke briefly on the differences with the US and
International markets to date. US companies have faired better during the markets downturn
of late. Tech companies are doing well, and they have added more energy exposure to the
portfolio. The one problem in the energy sector has been lack of workers to increase output.
He mentioned they deal with high earning companies such as Microsoft and Semi-Conductor
firms. The presentation concluded at 9:45 am.
The Board then had a conversation regarding lowering the Acadian holdings and possibly
moving funds into Enduring Assets. They will revisit the topic at the August Board meeting.
Robert Cunha made a motion to adjourn the meeting at 10:00 am, which was seconded by
Joseph Foley, and unanimously approved by Carolyn Kosnoff, Alan Fields, and Fred Weiss.
Future Board meeting dates: September 22nd, October 27th, November 21st, and December 22nd
The next Retirement Board meeting will be held via Zoom on Thursday, August 25, 2022 at 8:30
_____________________________
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member