2020-04-30-RB-min - Laserfiche WebLink

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much more capitol coming to them. Half of their cash yield comes from pre-construction and construction of facilities. Henry Jaung and Steve McLellan presented the Meketa update. It began with some skepticism over BlackRock. Fred is concerned about the exit strategy. For instance, if we want to exit in 7 years,what does the market even look like? Alan feels the same. The term of the fund is 12 years. The issue getting into this fund is the return, not so much the success of it. What would be the rate of return 7-10 years from now? The IRR exit doesn't appear to fit well with Lexington's portfolio. The portfolio balance as of March 31, 2020 was$157,636,670.00. YTD portfolio is down -14.2%. The global pandemic continues to send global markets downwards. All equity asset classes are down -18%, and real estate is down -4.5%. There are no real surprises in the figures reported. Henry noted we have great managers out there working to get the numbers to turn in the second quarter. Total U.S market is down close to 20%as of April 29, 2020. Our total fund aggregate net through April 24th was projected at -10.68%. Henry Jaung introduced a potential new investment for the Lexington Retirement Board portfolio. TALF 2.0,Term Asset-Backed Securities Loan Facility. This is a program designed to have private investments in asset backed securities by providing federal government loans to investors through the NY Federal Reserve. It is designed to help stabilize capital markets and generate strong returns for its investors. The program entails a three (3)year lock in period. Meketa has identified Wellington and Payden as two dedicated TALF eligible asset vehicles for this investment. Both are highly rate and are projected to generate 7%- 10% return. Bob Cunha made a motion to transfer$8m from the Real Estate fund to Cash. The motion was seconded by Fred Weiss, and approved by Joe Foley and Alan Fields. Fossil Fuel exposure is 2.8%. It is 1.3% lower than the December 2019 figure. Bob Cunha motioned to adjourn the meeting at 11:00 am,which was seconded by Joe Foley and approved by Alan fields and Fred Weiss. The next Retirement Board meeting will be held on Thursday, May 28, 2020 at 8:30 am. The meeting will be held via Zoom tele-conference. Fidelity Investments and Fiduciary Management have been invited to present. Robert Cunha, Chairman Alan Fields, Appointed Member Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member Frederick Weiss, Appointed Member