2014-08-27-RB-min - Laserfiche WebLink

Browse Search

Minutes of the August 27, 2014 Retirement Board Meeting Present: Robert Cunha, Alan Fields, Joe Foley, Rob Addelson, Marguerite Oliva, Karen Marchant, Mike McNabb Bob Cunha called the meeting to order at 8:00 AM. NEW MEMBERS: (11) David Cottam, Michael Powers, Dispatchers; Dale Dean, Admin. Asst.; Christopher Abisla, Firefighter; Ryan Smith, Facilities Financial Assistant; Laura Silverman, Kristen Gahagan SSI; Michael Sprague, Engineering Asst.; Katherine Costa, IA; Jaclyn Carlozzi, SPED IA; Richard Sampson, Custodian RETIREMENTS: Violet Robbat, Aide, 6/30/14; Cynthia Johnson, Asst. Director, 10/31/14; David Lattanzio, Laborer, 9/2/14 DECEASED: Barbara Bello, School Secretary, 7/5/14 The Board accepted and signed the 0829114 Warrant and August payroll. The August minutes were reviewed and approved as well as the cashbooks for July 2014. Henry Jaung and Steve MacLellan from Meketa presented the interim update. The market value on 7/31/14 was $137.5mm, down from $138.1mm on 6/30/14. The aggregate asset year to date performance shows a gain of 5.3 %, outperforming the actuarial target and benchmarks of 4.5 %. For domestic equity, it was noted that both Hartford and Contrafund underperformed and Fiduciary outperformed the benchmarks. The Board compared the holdings of both investments which helped to explain the different performances. A report showing the correlation of Hartford and Contrafund from 12/1/06 — 6/1/14 was included. Henry felt that the lack of Private Equity investments in the portfolio compared with PRIT' s 11 %, has caused some underperformance. Henry discussed the Wellington Hadley Harbor Private Equity Fund which has a target launch date of October 2014 and will be managed by Saul Pannell. After a discussion about the merits and constraints of private equity, the Board decided not to invest in private equity due to the sensitivity to the liquidity needs of the Lexington Retirement System. The Board will continue to have a more defensive, conservative approach for equity with the possibility of increasing the Fiduciary holding. There was a discussion on looking for another real estate investment as Beacon Capital will soon becoming due and that will leave almost zero exposure in the real estate market. Core plus real estate was mentioned as an alternative with the possibility of a 4% - 5% exposure possibly taken from domestic equity which would cause in increase in international equity. Henry was asked to put out a search for Core Plus RE now so a decision could be made in early 2015. A decision was made that any excess cash should be invested with the PRIT Hedge Fund as long as the investment does not exceed 10% of the portfolio. State Street will provide the cash balance. Domestic equity will be used if funds are needed to cover monthly expenses.