2021-05-27-RB-min - Laserfiche WebLink

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Minutes of the May 27,2021 Retirement Board meeting: Present: Robert Cunha,Joseph Foley,Alan Fields, Fred Weiss,Carolyn Kosnoff, Marguerite Oliva,and Jim Condon Absent: None NEW MEMBERS: (4)Amber Rickers,Nicole Foss, Student Support Instructors; Jennifer Caruso,Instructional Asst.;Higor Fernandes,Equipment Operator; RETIREMENTS: None DEATHS: None The Lexington Retirement Board met remotely through Zoom tele-conferencing during the Covid-19 Pandemic. The Town Clerks Office posted the meeting,which included the information for any interested party to join the call. All Board members were present for this meeting. Chairman Robert Cunha called the meeting to order at 8:35 am. The Board accepted the 052821 Warrant and the May payroll. The April minutes and March financials were reviewed and approved. Robert Cunha reviewed the May agenda with all Board members and staff in attendance. It was noted the Board received three(3)distributions and one(1) reimbursement within the past thirty(30) days. There is no update to report on the matter of Robert Magarian. The Retirement Board will continue to garnish Mr. Magarian's pension payments until further notice. The Board members were advised to review PERAC memo#14 regarding 2"d qtr. 2021 Board training. All courses remain offered online due to the ongoing Pandemic. A reminder that the MACRS Conference will be held virtually June 6`"and June 7`". Members wishing to attend must sign up within the next week. Stephen MacLellan presented the Meketa portfolio update at 8:45 am. The portfolio balance as of April 30,2021 is $221,001,085.00, up$8.1m from the prior month. The market continues to rebound from the pandemic. Each month this year has posted positive gains. US equities continue to drive the market. The portfolio is now up 7.6% YTD. The cash holding remains high, but the Board will be looking to move some cash into a Direct Lending fund in the near future. Stephen mentioned they are not seeing many defaults on loans from Short Term Senior Lenders at this point,even with interest rates on the rise. The portfolio will remain as is for the time being. No real changes are on the horizon. Rob Jacobson presented the Direct Lending interview for Golub Capital. Golub is an award winning middle market lending firm with over$35b in Capital under Management. They remain focused on North American lending only and deal with First-lien first out senior secured floating rate loans. Main goal is to generate consistent net returns via low defaults by companies. Four categories that Golub will work with are Software, Healthcare,Consumer Specialty Stores,and Diversified Industries. These for categories are all growing by the day with positive returns. The thought is these sponsored backed companies are less risky and support better credits than the non- sponsored companies. Golub's annual default rates remain under 1%. The portfolio they manage has held on throughout the Pandemic. They feel stronger today and even pre-pandemic levels. Michelle Joyeux briefed the Board on a product offering called GCP14. It is similar to GCP13, but more attractive in todays market as we head out of the pandemic. This product is designed to excel in uncertain times and offers strong principal protection. It will also provide a natural hedge against interest rates. Expectations are 10.5%-13%in returns. Returns are issued quarterly. Golub will deploy 25%of the initial investment immediately. She wrapped up the presentation at 9:20 am.