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HomeMy WebLinkAbout2011-02-24-RB-minMINUTES OF THE FEBRUARY 24, 2011 RETIREMENT MEETING Present: Robert Cunha, Rob Addelson Alan Fields, Michael McNabb, Marguerite Oliva Absent: Joseph Foley Bob Cunha called the meeting to order at 8:00. The Board accepted and signed the 022811 warrant and the February payroll. The January minutes were reviewed and signed. New Members: (2) Melinda Corssino, Recreation Admin. Assistant; Amy Taranto, School IT Maintenance Associate Deceased: (2) Georgia Kalafatis, School Lunch, Opt. B depleted, 219111; Yolanda Balon, Librarian, Opt. A, 2/20/11 Fran Peters and LouAnn Eisenhut from Meketa Investment Group presented the 4 th quarter 2010 update. All markets performed well in the 4th quarter. Small cap stocks outperformed large cap stocks both domestically and abroad. International equities trailed domestic equities due to concerns over debt issues in Europe and inflationary pressures in China. The market value for 12/31/10 was $110.2 million, an increase of $6 million since 9130/10. The total retirement system increased 14.3% in 2010. Meketa discussed the responses to the RFP for a Global Equity Manager. There were eleven companies that responded. Of those that responded, the Board felt First Eagle Investment Management was a strong candidate. Meketa will gather more information on Kleinwort Benson Investors International, Schroder Investment Management and Wellington Management Global Value. The Board discussed how the addition of another manager would benefit the portfolio. A percentage could be taken from the global equity portfolio and invested with a global equity manager in the interest of protecting the down side. Wellington representatives Sarah Gilfillan and Scott Brink presented the Opportunistic Investment report. Lexington first hired Wellington in 1998 and invested in the Opportunistic Fund beginning in 2004. The 1131/11 market value was $20,439,548. 2010 saw the top three contributors to alpha as alternative energy, select intrinsic value and global agriculture. This fund has a broad exposure to China related equities. The highest exposure is to financials, followed by info technology, industrials and energy. Scott Eliott is the manager and working from Hawaii. He and Brian Garvey are the only two to make final fixed income change decisions. The position on credit peaked at 14% and is now 8% with the shift toward high yield. Oil exposure is the smallest allocation to the portfolio. The long term shift will be toward alternative energy sources. The Board discussed Mike Sacco's draft of the membership policy changes. A motion was made, seconded and approved unanimously to accept the changes of increasing the membership requirement to 20 hours per week and accepting makeup liability only for those who were employed by the Town of Lexington but were not eligible for membership and now have become eligible. John Damiano asked to be allowed to distribute his four year military buyback over six years. The Board accepted his request. Payroll deductions will begin with the next payroll. Atty. Sacco sent a letter to Laura Creedon reiterating that " any communication regarding any matter that pertains to or involves the Board must be directed through his office" He also stated that there is no reason for her or anyone acting on her behalf to have any communication or contact with the Board. The Physician Statement for Joseph Sveistys which was sent back to the doctor for completion has not yet been returned. As soon as the form is received, the Request for a Medical Panel will be sent to PERAC. It was noted that the voucher for reimbursement to the Town of Lexington for salary covers 16 payrolls for Maggie and Karen and Maggie's benefits for 6 months. Maggie inquired about reimbursing the Town monthly or bi- monthly rather then twice a year. After Maggie and Karen left, the Board discussed the compensation survey. By a 4 -0 vote, Maggie was granted a 4% pay increase retroactive to July 1, 2010. Some objectives are to be set for Karen and a review will be done in six months to assess her performance. Fidelity representatives will be asked to attend the March 24, 2011 meeting. PERAC still has not responded to the Board regarding the 2008 over earnings for Anthony Previte. A motion was made, seconded and approved unanimously to adjourn the meeting at 9:30 AM. The next meeting will be held March 24, 2010, 8:00 AM at Cary Memorial Library in the Learning Center. Robert W. Cunha, Chairman Michael McNabb, Appointed Member Robert Addelson, Ex Officio Member Absent Joseph Foley, Elected Member Alan Fields, Appointed Member