2023-04-27-RB-min - Laserfiche WebLink

Browse Search

Stephen briefed the Board on the Global Tactical Asset Allocation RFP’s. Meketa received three responses from two managers, Wellington Opportunistic & Enduring, as well as GMO. He has advised the Board to review the respondent info inside the presentation deck. He mentioned that Wellington strategies have worked well for our portfolio. As for GMO, Stephen mentioned they are well established in Boston and work in emerging markets and valuations. The investment process uses a quantitative approach that manages short & long term exposures in over 50 global equity, bond and commodity markets using exchange traded futures and forward foreign exchange contracts. He concluded GMO has one of the lowest rate of returns over the 3/5/10 year periods. It is a decent strategy to use, but you would be in for a long haul. Mr. MacLellan wrapped up his presentation at 9:03 am. Peter Kenny and David Manzano presented the Golub review at 9:05 am. Peter began with a firm update and overview of staff changes and promotions. He mentioned that the Lexington strategy Fund 9 has returned a 9.4% since inception date, and 7.5% in 2022. The fund will be finished soon and we should take a distribution or roll into a new strategy in June. David Manzano took over the presentation and provided an overview of our Q4 performance. Our GCP International Funds did well, posting a 7.3% vs. Indices. His outlook for GCP fund is it will likely perform reasonably well. Borrowers have adapted to the current financial environment. His only concerns are inflation and supply issues are muddling growth. As for middle market lending, more than 60% of their customers are repeat, just needing some add-on’s for financing. They have no big need to go out and seek new customers. Peter and David wrapped the presentation at 9:28 am. Jeff Kusmierz presented the RhumbLine review at 9:30 am. He went over the organization chart and product highlights within the portfolio. They have launched and funded 16 new products since we last met with RhumbLine. As of March 31, 2023, RhumbLine has $95.5b in Assets under Management. Their client base is quite diverse. Clients include public funds, endowments, foundations, & corporations. Top 10 holdings include Apple, Microsoft, Amazon, and Nvidia. Jeff spoke of the portfolios characteristics, mainly the number of holdings, which was 1,008 at the time of this meeting. As for performance, Q1 2023 is up 7.45% and up 18.52% over 3 years for the portfolio. He mentioned there aren’t any changes on the way with strategy. Everything is working as it should be as of this meeting. He wrapped his presentation at 9:40 am. Robert Cunha made a motion to adjourn the meeting at 9:42 am, which was seconded by Joseph Foley, and unanimously approved by Carolyn Kosnoff, Fred Weiss, and Alan Fields. The next Retirement Board meeting will be held via Zoom on Thursday, May 25, 2023 at 8:30 am. Fidelity is available to present. _____________________________ Robert Cunha, Chairman Alan Fields, Appointed Member Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member Frederick Weiss, Appointed Member