2016-04-27-RB-min - Laserfiche WebLink

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Minutes of the April 27, 2016 Retirement Board Meeting Present: Robert Cunha, Joe Foley, Fred Weiss, Marguerite Oliva, Alan Fields, Rob Addelson and Karen Marchant Bob Cunha called the meeting to order at 8:00 AM. NEW MEMBERS: (9)Anthony Cappello, Stephen Asetta, Custodian; Jennifer Gingras, Dept. Assistant, Land Use, Heath & Development; John Casey, Firefighter; Michelle Kelleher, Municipal Assistant; Katherine Rafuse, SPED IA; Michelle Rooney, Administrative Assistant; Joseph Carruthers, David Serino, Police Officers DEATHS: Eugene Muller, Firefighter, 4/13/16, Judith eligible for survivor benefits RETIREMENTS: Robert Croke, Fire Lieutenant, 6/22/16 The Board accepted and signed the 043016 Warrant and April payroll. The March 2016 minutes were reviewed and approved as well as the cashbooks for February 2016. The Board reviewed the results of Jason Morey’s medical panel. The 3 separate panels all agreed that Jason can no longer performed his duties as a firefighter. Motion by Joe, second by Fred and unanimously voted to accept the results and submit to PERAC for final approval. It was reported that Laura Creedon has a court case scheduled with DALA on June 1, 2016. The discussion of the extension of investment contracts for 2 years was tabled to the next meeting. Henry from Meketa presented an analysis of Fossil Fuel exposure including a Fossil Fuel Divestment Memorandum. The analysis includes equity managers, Hartford, Fiduciary, Rhumbline, Matthews, Acadian and Wellington, and fixed income manager Loomis Sayles. As of December 31, 2015 approximately 3.7% of the total system was invested in fossil fuel companies and within the exposure approximately 1.2% is invested Carbon Underground 200 Companies. The memorandum noted the Town of Lexington’s interest in fossil fuel divestment in the hopes that economical investment products that use a fossil-fuel-free approach become available in the future. The Retirement Board is waiting for the State to take the lead. Henry also presented the Retirement System Detail and portfolio review as of March 31, 2016. The market value as of 3/31/16 was $135.8 mil down slightly from $136.6 mil as of 12/31/15. He discussed performance tailing slightly with PRIT. He also reviewed aggregate assets, asset summary and allocation. Henry provided information on PRIT’s Real Estate program. PRIT’s program consists primarily of core investments (core private and global REITS) with some exposure to value-added real estate as well. Henry broke down the real estate asset class with allocation and target percentage and included liquidity, trade notification and fees. Meketa will run an allocation for the next meeting taking 3-4% from the highest performance equity asset class to the real estate sleeve for the Board’s review. Joe Beauparlant from Loomis Sayles was present for the annual review. He reported performance as of March 31, 2016 was 3.66% and 6.64% annualized. He gave an overview of the team, strategy, credit cycle, characteristics, benchmarks and positioning. The Vanguard balance as of 3/31/16 is $6,820,580.