2015-01-29-RB-min - Laserfiche WebLink

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Minutes of the January 29, 2015 Retirement Board Meeting Present: Robert Cunha, Alan Fields, Joe Foley, Rob Addelson, Frederick Weiss, Marguerite Oliva and Karen Marchant Bob Cunha called the meeting to order at 8:00 AM. NEW MEMBERS: (8) Gina Rada, Veterans Director; Kimberly Hartka, SSP; Megan Avallone, ASA; Hemali Patel, Senior Services Coordinator; Patricia Moore, Budget Officer; Brenda Fortier -Dube, SCTA; Jeffrey Monagan, Laborer /Truck Driver; Daniel Burnell, Meter Reader RETIREMENTS: Ginnie Caragliano, DPW Lead Assistant, 3/27/15; Gail Rehm, Admin. Asst. 1/30/15; Joseph O'Leary, Police Captain, 1/31/15 DECEASED: John Brucchi, Firefighter, Nov. 22, 2014; Elizabeth Baird, Clerk, 12/29/14; Marie Khachadoorian, School Lunch worker, 1/17/15 The Board accepted and signed the 01/30/15 Warrant and January payroll. The December 2014 minutes were reviewed and approved as well as the cashbooks for November 2014. Stephen MacLellan and Henry Jaung from Meketa presented the Quarterly review for December 31, 2014. The market value as of 12/31/14 is $138 mil down from $139.8 mil as of 11/30/14 with YTD performance up 6.9 %. They reviewed performance by asset class focusing on the Wellington Opportunistic Fund, our largest holding, and suggested these funds should be used to fund the new debt manager. Meketa also presented the results of the Direct Lending Respondent Review. Meketa received 3 responses to the search; Brevet Capital Management, Golub Capital and White Oak Global Advisors and compared them by providing a summary of criteria including strategy, performance, fund structure, organization, investment team and fees with a rating for each. Alan would like Meketa to provide the Gross IRR with a year by year comparison with and without leverage and also have a sector mix of the portfolio with exposures. Both Golub and White Oak are considered to be the strongest candidates and will be invited to the next board meeting. In December Meketa issued and RFP for global tactical asset allocation managers and provided a list of the 16 respondents they received. They are currently reviewing the submissions and will present the results at the next board meeting. It has come to the attention of the Board that the citizens of Lexington have engaged in communications regarding the subject of Fossil Fuel divestment. A response from Michael Trotsky from PRIM has been received. The Chairs of Pension Funds and Public Trusts will eventually be required to respond and the Board should be prepared and we should rely on the resources and actions of PRIM to guide us. In the meantime Meketa will research what investments in our portfolio, if any, invest in any fossil fuels. Jake Brown, Bradley Huggins and Matthew McMenamy from Wellington Management Company were present for the annual review. They reported as of December 31, 2014 Lexington's total market value with Wellington is $28,746,462. Lexington invests in 2 funds, Opportunistic and Enduring assets. They provided the philosophy of approach, portfolio construction, performance, key themes, positioning and drivers and discussed the challenges of being underweight to the US and staying too long in thematic exposures. They also reported that if the board was interested they could take advantage of a lower base