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MINUTES OF THE FEBRUARY 24, 2011 RETIREMENT MEETING Present: Robert Cunha, Rob Addelson Alan Fields, Michael McNabb, Marguerite Oliva Absent: Joseph Foley Bob Cunha called the meeting to order at 8:00. The Board accepted and signed the 022811 warrant and the February payroll. The January minutes were reviewed and signed. New Members: (2) Melinda Corssino, Recreation Admin. Assistant; Amy Taranto, School IT Maintenance Associate Deceased: (2) Georgia Kalafatis, School Lunch, Opt. B depleted, 219111; Yolanda Balon, Librarian, Opt. A, 2/20/11 Fran Peters and LouAnn Eisenhut from Meketa Investment Group presented the 4 th quarter 2010 update. All markets performed well in the 4th quarter. Small cap stocks outperformed large cap stocks both domestically and abroad. International equities trailed domestic equities due to concerns over debt issues in Europe and inflationary pressures in China. The market value for 12/31/10 was $110.2 million, an increase of $6 million since 9130/10. The total retirement system increased 14.3% in 2010. Meketa discussed the responses to the RFP for a Global Equity Manager. There were eleven companies that responded. Of those that responded, the Board felt First Eagle Investment Management was a strong candidate. Meketa will gather more information on Kleinwort Benson Investors International, Schroder Investment Management and Wellington Management Global Value. The Board discussed how the addition of another manager would benefit the portfolio. A percentage could be taken from the global equity portfolio and invested with a global equity manager in the interest of protecting the down side. Wellington representatives Sarah Gilfillan and Scott Brink presented the Opportunistic Investment report. Lexington first hired Wellington in 1998 and invested in the Opportunistic Fund beginning in 2004. The 1131/11 market value was $20,439,548. 2010 saw the top three contributors to alpha as alternative energy, select intrinsic value and global agriculture. This fund has a broad exposure to China related equities. The highest exposure is to financials, followed by info technology, industrials and energy. Scott Eliott is the manager and working from Hawaii. He and Brian Garvey are the only two to make final fixed income change decisions. The position on credit peaked at 14% and is now 8% with the shift toward high yield. Oil exposure is the smallest allocation to the portfolio. The long term shift will be toward alternative energy sources.