2013-07-24-RB-min - Laserfiche WebLink

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Minutes of the July 24, 2013 Retirement .Board Meeting Present: Robert Cunha, Joe Foley, Alan Fields, Rob Addelson, Mike McNabb, Marguerite Oliva, Karen Marchant Bob Cunha called the meeting to order at 8:00 AM. The Board accepted and signed the 073113 Warrant and July payroll. The June minutes were reviewed and approved. New Members:: (6) Melissa Jones, Management Intern, Marisa Cappadona, Catherine Agresto, SSI; Linda Rainville, Dept. Assistant; Sean Wilson, Custodian; Christopher Gaffron, AN Technician; Retirements: Bernadette Kearney, School Aide, 6/28/13; Rosemary Maconochie, Administrative Assistant, 9/12/13 Deaths: (5) Margaret Hartery, School Library Aide, 7/29/13. Opt. B depleted; Dorothy Gauthier, Clerk, 7/30/13, Opt. A; David Savage, Firefighter, ADR Opt. B, 7/6/13; Dorothy Silva, School Lunch, Opt. A, 7/2/13; John MacKenzie, DPW, Opt. A, 7/10/13 Henry Jaung from Meketa presented a 6/30/13 update. The market value of the System decreased from $123.7 on 5/31/13 to $118.9 on 6/30/13. The Global Tactical Asset holdings and Fixed Income were the worst performers for May and June. When questioned about the investment report, Henry noted that the mutual funds lag in reporting. Contrafund and Hartford are 1/4 behind in reporting but Henry feels there will not be a drastic shift when 2nd quarter reports for both are received. Also noted was that PRIT reports gross of fees whereas LRS reports net. In discussing some of the reasons the portfolio was down it was mentioned that there was too much international exposure in the portfolio and fixed income did not do well. June was a bad month with loses across the board. PIMCO Global Multi -Asset had the greatest loss at 7.2 %. The Board asked Henry to contact PIMCO to discuss the loss. PIMCO representatives will be asked to attend the August meeting. Most of the year's gains were lost in June but the market is starting to rebound. The Board discussed the decision to move some GTA funds to the PRIT Hedge Fund sleeve. The GTA is 26% of the portfolio. The question was raised if it would be possible to get flexibility without investing in the PRIT Hedge Fund. After reviewing a three -year cash flow report that Maggie sent to Mike, he asked that the report be sent to the Board and Meketa for review and comment. Meketa included two fee comparison reports for legal, custody and consulting fees. Lexington vs. Greenwich Associates which is the average cost for public funds with assets less than $500m and Lexington vs. Mass. Public Peers which includes 22 different towns with market values between $78 and $128 million. Rob presented the Board with a Funded Pension Ratio report comparing nine other systems similar to Lexington. Rob asked that the systems listed be asked to provide information on their legal, custody and consulting fees. SSgA reps. Emeka Linton and Read Burns presented the SSgA review. They reported the 6/30/13 market value for Lexington was $2,578,031. The Passive Bond Market Index NL Fund since the inception in June 2009 has almost mirrored Barclays US Aggregate Bond Index. SSgA has $326.1 billion total global indexed bonds under management and $164.1 billion US fixed