2022-06-23-RB-min - Laserfiche WebLink

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Minutes of the June 23, 2022 Retirement Board meeting: Present: Robert Cunha, Joseph Foley, Alan Fields, Carolyn Kosnoff, Marguerite Oliva, and Jim Condon Absent: Frederick Weiss 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. Robert Cunha, Joseph Foley, Alan Fields, and Carolyn Kosnoff were present for this meeting. Fred Weiss was unable to attend. Chairman Robert Cunha called the meeting to order at 8:30 am. The Board accepted the 063022 Warrant and the June payroll. The May minutes and April financials were reviewed and approved. Robert Cunha reviewed the June agenda with all Board members and staff in attendance. It was noted we received a distribution from White Oak in the amount of $220,363.00. A distribution from Angelo Gordon was received on 6/10/22 for $139,909.00. The Board reviewed an email request for a buyback regarding cadet time from a newly hired employee with the Lexington Police Department. Unfortunately, the new employee has yet to take the exam with LPD as a dispatcher, therefore is not q ualified to purchase time as this moment. The employee will be notified. There is no new information to report from Michael Sacco, Esq. regarding the matters of Joseph O’Leary and Robert Magarian. Carolyn Kosnoff spoke briefly about the OPEB fund and Stone Consulting. For now, the fund is hovering around $25m. She wanted to inform the Board our fund is still under special state legislation, but we could possibly move to the standard state structure. It requires little work and the auditors are fine where we currently stand. It will be a discussion at Town Meeting. This is a topic that will need to be revisited by the fall. She will seek opinions with the Town Manager & Council. The focus will be on diversifying some of the $25m into other asset clas ses. Michelle Joyeux, Peter Kenny, and David Manzano presented the Golub Capital update at 8:55 am. Michelle spoke of the Q1 2022 performance for the portfolio. Our Golub GCP Fund 9 had a net return of 3%, as did the GCP Fund 14. She mentioned the earnings growth across middle market private companies within their strategy was much stronger than the same time last year during Covid-19. It is a reflection of an economy that continues to grow, albeit at a slower pace than the calendar year 2021. Middle market deal activity has slowed down, but not dramatically. The companies within the portfolio continue to have stable ratings, low default rates, and solid net realized and unrealized gains. Peter and David mentioned that Q1 2022 was very active. It is attributed to their existing borrowers in the portfolio. They continue to lend funds in the Middle Market Origin by Borrower EDITDA. The target range for them is $20 -