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Minutes of the September 22, 2022 Retirement Board meeting: <br />Present: Robert Cunha, Joseph Foley, Alan Fields, Carolyn Kosnoff, Marguerite Olive and Jim Condon <br />Absent: Frederick Weiss <br />The Lexington Retirement Board met remotely through Zoom tele-conferencing. The Town <br />Clerks Office posted the meeting, which included the information for any interested party to <br />join the call. Chairman Robert Cunha called the meeting to order at 8:30 am. <br />The Board accepted the 093022 Warrant and the September payroll. The August minutes and <br />July financials were reviewed and approved. <br />Robert Cunha reviewed the September agenda with all Board members and staff in attendance. <br />Marguerite Oliva, Board Administrator, announced she will retire on November 29, 2022 <br />It was noted there was a Monroe Capital distribution for $44,333.00 on August 25, 2022. <br />The Board was notified Joseph O’Leary Jr. is yet to contact the Retirement Office regarding his <br />remaining accumulated deductions on file. <br />The Robert Magarian matter is still in a holding pattern. Marguerite Oliva sent out information <br />to Chris Collins for review. The Retirement Office is waiting to hear back from Mr. Collins. <br />Joseph Foley, Board member, requested to speak with the other Board members regarding the <br />local option legislation for the 5% COLA. This bill, which remains before the State Senate, <br />would allow local retirement boards to increase the current COLA from 3% to 5% for fiscal year <br />2023. Mr. Foley gave his thoughts on this pending legislation and was in f avor of Lexington <br />adopting the increase, if enacted. Our retirees in Lexington, as well as most retirees around the <br />Commonwealth could benefit during these difficult times of rising costs and the potential for a <br />recession. The Board will further discuss at the next meeting. <br />Henry Jaung and Steve MacLellan presented the Meketa update at 8:45 am. The portfolio <br />balance as of August 31, 2022 was $195,783,576.00, down $4.1m from the July report. As of <br />this meeting, the Federal Reserve has raised the interest rate another .75%. Flat to negative <br />growth in the markets is now on the horizon. The Dow Jones has been trending in a downward <br />pace these recent days. The portfolio was down in most sectors last month. However, our Real <br />Estate and Private debt holdings are stable. Unallocated assets, which make up 35% of <br />portfolio are holding up well. For the most part, the portfolio is structured as it should be and <br />had been performing well. However, it was mentioned by Board member Alan Fields that we <br />have too much exposure in International Equity Assets. The way the world and markets are <br />going lately, holding at 17.3% of our portfolio is too risky. International Equities have been <br />suffering for the past year. He feels it is time for the Board to consider loweri ng our holdings <br />from 17.3% to roughly 8-10% and invest more in US Equities and Bonds. Stay within the small <br />to mid-cap markets. It was decided to have Meketa research some strategies within the US