2010-03-18-RB-min - Laserfiche WebLink

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MINUTES OF THE MARCH 18, 2010 RETIREMENT MEETING Present: Robert Cunha, Joseph Foley, Alan Fields, Rob Addelson, Michael McNabb, Marguerite Oliva Bob Cunha called the meeting to order at 8:00. The Board accepted and signed the 033110 warrant and the March payroll. The February minutes were reviewed and signed. The 2009 PERAC Annual Statement was reviewed and signed by the Board. There was a general discussion of the expected cash shortages for the fourth quarter of FY' 10. The anticipated amount to cover the payrolls and accounts payable for the rest of FY' l 0 is $1,712,150. The funds will need to be drawn from an investment with daily liquidity. The Board mentioned Fidelity Contrafund, Hartford and PIMCO. The Board determined that if Acadian has daily liquidity, $300,000 will be transferred to State Street to cover the shortage for April. The Board will make a determination at the April meeting which funds should be used to withdraw on a bimonthly basis until the FY' 11 town appropriation begins. The Board discussed the Asset Allocation Policy that Meketa presented at the last meeting. A motion was made, seconded and approved unanimously to adopt the policy that will include a dedicated allocation to hedge funds. At the April meeting, the Board will determine which investments should be used to fund the 5% allocation to the PRIT hedge fund segment. The investment policy will also be updated at that time. There was a discussion of the possibility of increasing the hourly membership requirement to 20 hours per week and also pro - rating part-time members. The thinking is that granting a full year's service to part- timers is a loophole that needs to be amended. Rob asked that Bob Harris be notified of the impending changes and allow any concerns to be voiced. It was decided that Superintendent Paul Ash and Denise Casey also be notified. It was requested that these issues be forwarded to Mike Sacco and ask him to compose a letter on behalf of the board explaining these possible changes. A decision was made to not liquidate the Acadian investment at this time. Meketa will be presenting a report which the Board will review. The Board will then make a decision. Sarah Gilfillan and Tim Maul presented the Wellington Opportunistic Investment Allocation review. Lexington Ret. invested in the fund beginning in November 2004. The fund has a 65% equity exposure and a 35% fixed income exposure. The February market value was $16,629,937. The largest equity market exposure is in Emerging Markets which includes China, Brazil and diversified countries followed by Natural Resources, Precious Metals. The largest fixed income allocation is sectors which includes credit opportunities, emerging markets debt and US TIPS.