2021-09-30-RB-min - Laserfiche WebLink

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Stephen MacLellan and Henry Jaung presented the Meketa update at 8:45 am. The portfolio balance as of August 31, 2021 is$229,007,485.00, up$4.89m from the prior month. Despite a strong month on the books, it was noted that the International Equity Asset class is on the downturn. RE in China is the main issue. There are problems with debt payments being made. Many are going unpaid. This is leading to a volatile situation overseas and it will only get worse with time. The problem is, nobody is sure how much worse this will get. Hong Kong is starting to feel the debt crunch at this moment. Stephen noted that our cash holding of 9%will be going down to 7%. Some of that cash has been redeployed to other investment buckets since the Asset summary for our system was posted. He mentioned our portfolio was up 1.9%for August and 2.4%for QTD. Overall,the portfolio has performed well for the past twelve (12) months; posting 21.9%. Our returns are strong, and we should continue with the strategy that is currently laid out. We are performing just as well as the PRIT fund to date. Meketa concluded their presentation at 9:05 am. Colin Edgar from Stone Consulting, Inc. entered the meeting for discussion at 9:10 am to review the funding schedule for the Lexington Retirement Board. He summarized his preliminary overview and results of the scheduling. The main focus was based on the number of years we want to go out. The years 2028—2030 were the focal point. Discount rates between 7.15% up to 7.50%were also presented and showed increases between $750K to $950K. Colin and the Board were in agreement to not fund out past year 2030. Colin mentioned there are consequences involved if we go further than 2030. Ch.32 sec.22F would now factor into FY contributions, something to avoid. To sum up,the Board requested to see two (2) more projections with various rates and COLA's built in. 15K would be the amount. Colin hopes to have these prepared by October 14, 2021. Final thoughts on the presentation were the Board feels comfortable with the 7 year schedule at 7.25%with $850k increases. It would provide some wiggle room at the end of the schedule. Colin Edgar concluded the presentation at 10:30 am. Robert Cunha motioned to adjourn the meeting at 10:35 am,which was seconded by Fred Weiss, and unanimously approved by Joseph Foley,Alan Fields, and Carolyn Kosnoff. The next Retirement Board meeting will be held via Zoom on Thursday, October 28, 2021 at 8:30 am. Francesco Daniele and Emily Green from the PRIM Board are expected to present at 9:00 am. Future Board meeting dates will be held on 11/22/21 and 12/20/21, both dates are Monday's. Robert Cunha, Chairman Alan Fields, Appointed Member Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member Frederick Weiss, Appointed Member