2016-07-28-RB-min - Laserfiche WebLink

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Mark Selby and Kyle Concannon from William Blair presented the Macro Allocation Strategy update. They presented an overview of the firm, assets under management and the allocation strategy team. The review for expected returns show high possible returns for Non U.S. and Emerging Market Equities. The performance summary was presented. Assets for Lexington Retirement as of 7/22/16 were $4,659,907 and the performance since 7/31/15 is -7.10%. nd Steve MacLellan presented the 2 quarter 2016 report. The market value as of 6/30 was $141.2m up from $136.8 on 3/31/16. Year to date the assets increased 2.1%. Domestic equity is the largest asset class with fixed income being second. One third of the portfolio offers flexibility which would allow a quick move if necessitated. Rob questioned if Blair should be kept in the portfolio and the answer was yes. Blair has only been in the portfolio since 7/31/15. Steve felt they can earn up to 7.5% return if implemented correctly and quickly. The portfolio is in line with target allocations. No major moves at this time. Steve discussed the legislative update for Chapter 68. If any system is less than 65% funded and lag PRIT by 2%, the system would be forced into PRIT for five years. The Board was reminded of the educational requirements and were given the PERAC earned credit reports to review. The following manager meetings have been set: FMI, Sept. 22; Matthews, Monroe and White th Oak for Oct. 20 and Golub for Nov. 29. A request will be sent to PRIT to attend the Aug. 25 meeting. Compensation study in progress for Maggie’s review. No change in fossil fuel stance. As of December 2015, approximately 3.7% of the total system in invested in fossil fuel companies. A motion was made, seconded and approved unanimously to adjourn the meeting at 10:00. The next meeting will be held August 25, 2016, 8:00 AM at Lexington Town Hall in the Parker Room Robert Cunha, Chairman Alan Fields, Appointed Member Absent Robert Addelson, Ex Officio Member Joseph Foley, Elected Member Absent Frederick Weiss, Appointed Member