2016-10-20-RB-min - Laserfiche WebLink

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Opportunistic Fund is being launched. Since inception, Lexington’s return is 8.88%. Original commitment was $6,000,000. The remaining unfunded capital commitment is $599,000 and may be called. Susan Grivas and Dave Donnelly presented the Matthews Asia Tiger Fund annual report. Discussed were the portfolio characteristics noting the overweight in consumer staples which have outperformed more cyclical sectors such as emerging market materials and energy. Wage growth in Asia is higher when compared to global wage growth. China is importing less due to the greater production of what is consumed. The average annual total returns for the Matthews Pacific Tiger Fund year-to-date are 10.5% and 19.78% for one year. Paul Aherns presented the White Oak report. The cash yield currently is 10.2% and they are trying to reach 12%. The largest sector exposure is telecom services followed by consumer discretionary. Mr. Aherns discussed the performance of the LRS portfolio noting it is a portfolio of strong loans. The portfolio summary included a report of new acquisitions. Henry Jaung from Meketa mentioned that private equity companies Monroe, Golub and White Oak are strong enhancers to the portfolio. It was decided that Henry should make it a priority going forward to look for more private equity companies. The market value of the portfolio on 9/30 was $143.9m. Henry presented the reports for current allocations and asset class performance. The RFP for SMID core equity will be discussed at the November meeting. As of June 2016, approximately 4.2% of the total system is invested in fossil fuel companies. Within the exposure, approximately 1.6% of the total System is invested in the Carbon Underground 200 Companies. Meketa’s analysis included equity managers Hartford, Fiduciary, Fidelity, Rhumbline, Matthews, Acadian and Wellington; fixed income manager, Loomis Sayles and opportunistic manager, Wellington. $1m was transferred to the PRIT fund on 10/1. The next $1m will be transferred 11/1/16. th Golub representatives will be attending the November 29 meeting. The Board was reminded of the educational requirements and given PERAC Credits Earned reports. The Board discussed Maggie’s increase and the Board voted 4 to 1 to increase her salary by $4,488.77 to a gross amount of $87,815.00. Rob had proposed a lesser amount. A motion was made, seconded and approved unanimously to adjourn the meeting at 10:30 The next meeting will be held November 29, 2016, 8:00 AM at Cary Memorial Library. Robert Cunha, Chairman Alan Fields, Appointed Member Robert Addelson, Ex Officio Member Joseph Foley, Elected Member Frederick Weiss, Appointed Member