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Minutes of the September 30, 2014 Retirement Board Meeting
<br />Present: Robert Cunha, Alan Fields, Joe Foley, Rob Addelson, Marguerite Oliva and Karen Marchant
<br />Bob Cunha called the meeting to order at 8:00 AM.
<br />NEW MEMBERS: (47) Petra Lesbirel, Field Technician; Aaron Jones, Vincent Fiamma, Lisa Tanner,
<br />Janelle Finn, Danielle Donigan, SSI; Ryan Chaar, Dawn Brundige, Katherine Hart, Karen Mann, Derek
<br />Kelly, Barbara Eliason, Adalgisa Carmona, IA; Kelsey Simard, Kelly Anderson, Lauren Coffey, Emily
<br />Whalen, Stephanie Kozak, Ariana DellaGatta, Laura Conroy, Allison Aubry, Sophia Leone, Kristin
<br />Cahoon, Elizabeth Lebherz, Brinee Martin, Olivia Spinney, Angelia Jack, Joseph Hunt, Nia Levels,
<br />Joshua Keehn, SPED IA; James McGovern, Ethan Gaston, Robert Furrier, Bridget Burns, Bart
<br />Thompson, SCTA; Lauren Riccardi, Elise Piracha, Shannon Gallagher, Chad Castro, ASA; Steven
<br />Moody, Robert Erickson, Douglas Porter Custodian; Michelle Antinarelli, O &M Specialist; Judith
<br />Foster, BCBA; William Grogan, Kristina Hankins, Police Officer; Juliet Brown, Metco Secretary;
<br />RETIREMENTS: Karen Boodakian, School Admin. Asst.; 10/31/14
<br />DECEASED: Gary Ganley, DPW Parks Chief, 9/7/14; Walter McDonald, School Custodian, 9/4/14;
<br />Eunice Schaeffer, School Secretary, 9/13/14
<br />The Board accepted and signed the 0930114 Warrant and September payroll. The August minutes were
<br />reviewed and approved as well as the cashbooks for July 2014.
<br />Lexington's Town Manager Carl Valente was present to discuss the proposed funding schedule and
<br />COLA increase. He agrees that a 5% annual increase to the appropriation is within the budget. He
<br />disagrees with increasing the COLA base and presented a spreadsheet of retiree health insurance analysis
<br />and how Lexington compares to other communities. When reviewing the total benefits for retirees which
<br />includes the Town's share of health benefits, Carl feels Lexington is well above the other communities.
<br />Lexington budgets 80% of the health care premium compared to the average of 66.4 %.
<br />Henry Jaung and Steve MacLellan from Meketa presented the interim update. As of August 31, 2014 the
<br />market value is $140.2 mil up from $137.5 mil as ofJuly 31, 2014. Most asset classes have done better
<br />than the benchmark with performance at 7.7% YTD. There was a discussion about the market and the
<br />notification that Bill Gross has resigned from PIMCO. Henry feels that it is not crucial to find an
<br />alternative for the PIMCO All Asset Fund but will start searching for other options and present the
<br />findings at the next meeting. Hedge funds will bridge the gap and become increasingly important with
<br />volatility in the market and will not outperform equity. In keeping with the 10% exposure in hedge funds
<br />there was a motion by Alan, seconded by Bob and voted unanimously to move $600,000 from PIMCO to
<br />PRIT.
<br />Meketa also presented a Real Estate and Direct Lending Review and provided 2 possible candidates for
<br />each. It was decided that Meketa will do an RFP search for both and will also put together an asset
<br />summary analysis committing $7 -10 million from possibly Loomis and Monroe.
<br />Susan Grivas from Matthews Asia was present for the annual review. She gave an overview of the fund
<br />including the present investment team, valuations, key factors, portfolio characteristics and allocations
<br />and reported competitive returns at 10.48% YTD.
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