2023-06-22-RB-min (rev) - Laserfiche WebLink

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Minutes of the June 22, 2023 Retirement Board meeting: Present: Joseph Foley, Alan Fields, Carolyn Kosnoff, Fred Weiss, Michelle Malone & Jim Condon Absent: Robert Cunha The Lexington Retirement Board met remotely through Zoom tele-conferencing. The Town Clerks Office posted the meeting, which included the information for any interested party to join the call. Joseph Foley, Alan Fields, Frederick Weiss, Carolyn Kosnoff, James Condon and Michelle Malone were present for this meeting. Joseph Foley called the meeting to order at 8:30 am. The Board accepted the 063023 Warrant and the June payroll. The May minutes were reviewed and approved. The financials were not available at the time of meeting. Joseph Foley reviewed the June agenda with all Board members and staff in attendance. Mr. Foley noted there was one distribution on 05/26/2023 from Monroe Fund IV in the amount of $83,796.00. A second distribution from Angelo Gordon is expected on 06/23/2023 for $176,324.00. Michelle Malone informed the Board the office renovation for the Retirement Offices is scheduled for July 13, 2023 and should be completed by July 18, 2023. Jim Condon gave an update on the Annual Benefit Verification requirement for retirees. As of 06/21/23, the office has received 420 completed forms. The 46 outstanding retirees had a second notice recently mailed to them for completion. James Weston submitted a letter regarding paying off his balance for overearnings. He had signed a promissory note years ago that the overearnings would be paid in full in 2023. His remaining balance is $4,024.13. The intention of the letter was to be sure his AD Disability retirement allowance would be restored to PERAC’s modifications. Once the balance is paid in full, our office will move forward with his request after a check in with PERAC. Stephen MacLellan and Henry Juang presented the Meketa update at 8:40 am. The portfolio balance as of May 31, 2023 was $199,896,960.00, down $2.8m. Steve mentioned activity around the markets are just less interesting as of late. The Debt ceiling issue was resolved, yet still had some issues surrounding it. The stock market held its own after the President signed off. Markets are still monitoring the inflation aspect and the Federal Reserve’s power to ease rates. The reopening of China is still concerning. It has not gone as well as investors would have expected these past few months. International and Global equity assets remain close to 5% down QTD. Matthews, Wellington and Acadian were all down 5% last month. Domestic Equities were flat in May, but all have posted positive numbers QTD. Meketa wrapped up the presentation at 8:55 Catherine Haviland and Drew Guyette presented the Angelo Gordon review at 9:00 am. Catherine first noted the merger between AG and Twin Brook. There are no expected changes in the management style and portfolio at this time. They will remain a Direct Lending firm. AG has maintained a decent year with all that has been happening the past few months. They have ample cash to fix the cracks with some of their borrowers who have struggled as of late. None have hit the default status on their loans, which is amazing considering the interest rates and costs of doing business. Borrowers have had to deal with three (3) prices increases over the past eighteen (18) months. Labor, supply chain issues, and raw