2019-10-24-RB-min - Laserfiche WebLink

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Recap of the October 24, 2019 Retirement Board meeting: The Board accepted the 103119 Warrant and the October payroll. The September minutes were reviewed and approved, as well as the cashbooks for August 2019. Bob Cunha reviewed the October agenda with the Board members and staff in attendance. It was noted the Vanguard balance is now$16.2m and a wire transfer for$1,510,486.00 was received from the Town on 10/9/19. The Loomis Sayles liquidation is complete, and the Driehaus subscription is now funded for $S.Om The Board discussed the recent correspondence submitted by Ryan Bugler. He email briefly explaining his displeasure with the Boards stance on his pension garnishment, among other things, and that he wishes to schedule a hearing with the Division of Administrative Law Appeals. The retirement board invited Mr. Bugler to attend the October meeting to discuss the matter, however, he failed to appear. The Board upheld its decision on the overpayment calculation that needs to be repaid. There was no new update with Mr. O'Leary. He has 45 day left to appeal. Board members were reminded of their course credits required by PERAC. It was mentioned the Open Meeting Law for Lexington will be held on Tuesday, November 19 at 6:00 pm in Town Hall. Board members are welcomed to attend to receive three (3) credits. Please log into PROSPER to view upcoming courses. Bob and Carolyn discussed the upcoming Actuarial study in January 2020. Changing of assumptions could lead to funding schedule changes moving forward. Town projects could lead to tighter funding over the next few years. The Board wants to safeguard against falling behind with funding and any effects with future COLA's. Henry Jaung and Tom Dunleavy presented the Meketa review. The portfolio balance as of September 30, 2019 was$175,117,497.00, up 1.1%from the previous month. The YTD performance is up 12.7%. The U.S Equity market continues to be strong for our portfolio. This market has us up 20.1%for 2019. We hold roughly 57%of total equity in our portfolio. Henry feels it is a bit overweight, but it continues to work well for us. Fixed income has done well, as has private debt loans. We should continue to participate in private debt equity. Our portfolio is in great position with little to change. Issues overseas in the UK and with Brexit should have little to no impact with US markets. We need to be cautious as the US election approaches in 2020. Tom and Henry spoke of Contrafund (-2.4) and Matthews (-3.9) being down for the QTD. After a run of strong performances, each are reverting downward, possibly due to Federal regulations on some of their Top 10 holdings. Facebook and Amazon are 2 of the top holdings being eyed for regulations it appears. Henry clarified the recent invitation only event being sponsored by EnTrust Global at the new Encore Casino in Everett, MA. He wanted to Board to know Meketa was never involved with EnTrust Global solicitation, or the event. They first learned of this through a business client. He made it clear Meketa is not a sponsor of that fund. Board members will receive the full context of Meketa's letter to PERAC regarding this matter. Fossil Fuel exposure as of September 30, 2019 is up approximately 4.4%.