2023-02-23-RB-min - Laserfiche WebLink

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The strengths have been within the equity markets. The Fidelity Contrafund and KAR are doing much better this year after a tough closing in 22’. Matthews is slowly working its way back after a dismal year. Steve closed with mentioning our Equities in the portfolio remain high. They will stay that way for the foreseeable future, but will keep a close eye on them. They had issued RFP’s for Opportunistic funds. Wellington and GMO were the two to respond. Meketa will research both and provide an update at the March 30, 2023 meeting. Steve’s presentation wrapped up at 11:30 am. Ken Solano, Scott Chandler, and Ken Baumbartner presented the Wellington funds at 11:31 am. Scott began with a brief overview of the Wellington objective and approach. The Opportunistic side focuses on exposure to opportunities that are underrepresented in traditional portfolios. The feeling is to capture potential returns and diversify core allocations. They work off of a 3 step theory; Strategic Themes, Market Neutral Themes, and Tactical Themes. Within in this strategy, the focus is on niche opportunities, absolute return, and risk management. Scott spoke of the recent highlights at Wellington. The main one was the Eliminated Covid Recovery as the thesis has run its course. With China reopening, the earnings have returned as the market prices itself back. Other points of interest, they have added credit exposures that diversity and are dynamic across economic landscape. Wellington has also rotated out of the EV auto tech after 6 years. The EV theme seems to have played itself out over time. Ken Baumgartner joined the discussion for the Enduring Assets portion. He gave a brief overview of that portion of the portfolio. Currently, 55% of assets are in Utilities, while Transportation and Mainstream sectors are at 10% each. Despite the portfolio being down 8% in 2022, the Q4 22’ numbers were up to 11.1%. He mentioned power producers and energy trades in the US were a big factor. Other positive factors were Energy and Telecom companies. Ken wrapped up the presentation at 12:20 pm. Robert Cunha made a motion to adjourn the meeting at 12:25 pm, which was seconded by Joseph Foley, and unanimously approved by Fred Weiss and Alan Fields. The next Retirement Board meeting will be held via Zoom on Thursday, March 30, 2023 at 8:30 am. Acadian and Monroe will present. _____________________________ Robert Cunha, Chairman Alan Fields, Appointed Member ABSENT Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member Frederick Weiss, Appointed Member