HomeMy WebLinkAbout2011-05-26-RB-minMINUTES OF THE MAY 26, 2011 RETIREMENT MEETING
Present: Robert Cunha, Joseph Foley, Michael McNabb, Marguerite Olive
Absent: Alan Fields, Rob Addelson
Bob Cunha called the meeting to order at 8:00.
The Board accepted and signed the 053111 warrant and May payroll. The April minutes
were reviewed and signed.
New Members: (4) Marie Downie, Police Dept. Office Manager; Carissa Sacchetti,
Instructional Assistant; Brandon Cooke, Firefighter; Kara Kelley, Student Support
Instructor
Retirements: (5) Joseph Ferranti, Head Custodian, 8129111; William Middlemiss, Fire
Chief, 6130111; Alice Hirchhorn, IA, 6130111; Eleanor Gower, IA, 6/30/11; Bea Saxonis,
School Secretary, 6 /30 /11
Deceased: Gail Wagner (active member) Lexpress Coordinator, 5/7/11
Corinne Larson from State Street Global Advisors presented the 3 /31 /11 investment
report highlighting Lexington Retirement System Relationship Overview, US Aggregate
Band Index Strategy and S S gA firm overview. As of 3/31111 she reported a market
value of $2,360,508 and gross annualized returns of 6.25% since inception.
Meketa presented a fund evaluation report outlining an Executive Summary and an April
30, 2011 interim update. The market value as of 4/30/11 was 116.7 million up from 112.6
as of 3/31/11. Investor optimism persisted in the first quarter of 2011 as the global
economy continued to improve with significant changes and shifts in early May with
energy, commodity and defensive stocks. They again also presented information
describing and analyzing the two finalist firms and outlining the strategies and
characteristics that differentiate one from the other. After some discussion Meketa
thought I" Eagle to be the best manager and suggested funding from Global Tactical
Assets.
Margie Mitchell and Jack Kirkpatrick from Aderdeen made a presentation on their firm.
They are a Global Equities firm with a long history of investing in equities, stable,
experienced and cohesive team with a disciplined and consistent investment process.
They are bottom -up stockpickers using a schematic three step investment process.
Greg Cassano from First eagle made a presentation on his firm. They are an independent
asset management firm controlled by The Arnhold family and employees with 6.6 billion
in institutional assets under management as of 3131/11. They have a bottom -up
fiindamental approach with non - equity securities including gold, fixed income and cash.
They use a document driven investment approach analyzing financial statements and
balance sheets.
A discussion followed. There are 2 decisions to be made, which company and allocation
of funds. Mike isn't convinced about either one and suggested adding a new player. He
will discuss proposals with Alan and suggested Meketa to do a little more research and
gain more details and answers. He also wants Meketa to follow up on change of
Management at Hartford.
It has been discovered that Nancy Sargent has been deceased since November, 2007. It
was never reported to the retirement board and Benefit Verification Forms have been
returned to us apparently forged. Nancy's bank account at Citizens Bank has still been
receiving a retirement benefit through direct deposit. Mike Sacco filed a report with the
Attorney Generals office. Maggie contacted bank and filed a breakdown of monies owed
and death certificate. In an effort to prevent this from happening again it was agreed to
have notarization of signatures on Benefit Verification Forms in the future.
It was reported there will be a cash shortfall at the end of June.
Acadian and Hartford should be contacted to come in for the next meeting.
Bob Cunha ran unopposed and was elected to a new term on the Board.
Meeting with Rep. Jay Kaufman, Peter Diamond and Sen. Ken Donnelly has been
rescheduled to June 17.
Mike requested to ask Meketa for a performance report of the Lexington Retirement
System compared to others.
PERAC still has not responded to the Board regarding the 2008 overearnings for
Anthony Previte.
A motion was made, seconded and approved unanimously to adjourn the meeting at
11:00 AM.
The next meeting will be held June 23, 2011, 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