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

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income index assets as of 3131113. Read Burns mentioned SSgA has ETF floating rate products where duration risk is removed. SSgA's investment philosophy, index investment process and risk management were discussed. Mike suggested transferring the SSgA investment to Loomis Sayles and Alan stated he would like to wait until after the representatives from PRIT attend the Sept. meeting to consider where the 2% invested with SSga could be placed. Bob mentioned using it as a funding source when there is a shortage. After discussing the involuntary ADR application received, Bob made a motion to request PERAC set up a medical panel. The motion was seconded by Rob and approved unanimously. The Vanguard balance as of 6130113 was $3,069,273. The Town invested an additional $775,000 in July. A motion was made by Bob, seconded by Joe and approved unanimously to have Monroe and all investment companies use "Lexington Retirement System" on all documents. The Board was given a copy of PERAC memo 918 regarding mandatory Board training. The Board requested that educational credit balances be checked before next meeting. The PERAC auditors will be coming in September for a three -year audit. The Administrator's review was to be discussed. A motion was made, seconded and approved unanimously to adjourn the meeting at 10:30. The next meeting will be held August 21, 2013, 8:00 AM at Cary Memorial Library in the large meeting room. On July 29", the Lexington Retirement System provided the Selectman with an update on the performance of the Retirement System. Chairman. Bob Cunha introduced Alan Fields and Mike McNabb representatives of the Trustees to make the presentation. The attached three charts highlight the in�or points that the trustees wanted to share. Chart l .....the funding ratio of the plan (78.3%) represented the second highest ratio level for all towns in the Commonwealth. Chart 2..... the performance results of the plan durin g the past ten years and over shorter intervals was in line with a 60140 global benchmark (equity/debt) but trailed the aetuarial target over five and ten year time frames reflecting the sub par results of financial market returns. Chart 3... -the Trustees offered a comparative chart which highlighted the difference in asset allocation between the Lexington plan and the Commonwealth's PRIT asset allocation. The chart also provided a cash flow analysis which explained that the difference in equity exposure and illiquid real estate and private equity investments reflected the unique liquidity eds of the Lexington plan.