HomeMy WebLinkAbout2010-03-18-RB-minMINUTES OF THE MARCH 18, 2010 RETIREMENT MEETING
Present: Robert Cunha, Joseph Foley, Alan Fields, Rob Addelson, Michael McNabb,
Marguerite Oliva
Bob Cunha called the meeting to order at 8:00.
The Board accepted and signed the 033110 warrant and the March payroll. The February
minutes were reviewed and signed.
The 2009 PERAC Annual Statement was reviewed and signed by the Board.
There was a general discussion of the expected cash shortages for the fourth quarter of
FY' 10. The anticipated amount to cover the payrolls and accounts payable for the rest of
FY' l 0 is $1,712,150. The funds will need to be drawn from an investment with daily
liquidity. The Board mentioned Fidelity Contrafund, Hartford and PIMCO. The Board
determined that if Acadian has daily liquidity, $300,000 will be transferred to State Street
to cover the shortage for April. The Board will make a determination at the April
meeting which funds should be used to withdraw on a bimonthly basis until the FY' 11
town appropriation begins.
The Board discussed the Asset Allocation Policy that Meketa presented at the last
meeting. A motion was made, seconded and approved unanimously to adopt the policy
that will include a dedicated allocation to hedge funds. At the April meeting, the Board
will determine which investments should be used to fund the 5% allocation to the PRIT
hedge fund segment. The investment policy will also be updated at that time.
There was a discussion of the possibility of increasing the hourly membership
requirement to 20 hours per week and also pro - rating part-time members. The thinking is
that granting a full year's service to part- timers is a loophole that needs to be amended.
Rob asked that Bob Harris be notified of the impending changes and allow any concerns
to be voiced. It was decided that Superintendent Paul Ash and Denise Casey also be
notified. It was requested that these issues be forwarded to Mike Sacco and ask him to
compose a letter on behalf of the board explaining these possible changes.
A decision was made to not liquidate the Acadian investment at this time. Meketa will be
presenting a report which the Board will review. The Board will then make a decision.
Sarah Gilfillan and Tim Maul presented the Wellington Opportunistic Investment
Allocation review. Lexington Ret. invested in the fund beginning in November 2004.
The fund has a 65% equity exposure and a 35% fixed income exposure. The February
market value was $16,629,937. The largest equity market exposure is in Emerging
Markets which includes China, Brazil and diversified countries followed by Natural
Resources, Precious Metals. The largest fixed income allocation is sectors which
includes credit opportunities, emerging markets debt and US TIPS.
The Post Retirement Health Fund investments in the Vanguard Prime Money Market
Fund and the Vanguard Admiral Treasury Money Market Fund were transferred on
March 1, 2010 to the Vanguard balanced fund, Wellington Fund Admiral (VWENX).
The amount transferred was approximately $844,000.
Rob asked that Bob make a short presentation at Town Meeting about the growth in the
investments for 2009.
Marguerite notified the Board that retiree Helen Hurwitz just celebrated her 104'
birthday. A card was sent on behalf of the Lexington Retirement Board.
Marguerite was asked to leave the meeting so the Board could finally do the
Administrator review. After the review was completed, Bob Cunha and Joe Foley
notified Marguerite that the Board voted a 1% increase retroactive to June 2009.
A motion was made, seconded and approved unanimously to adjourn the meeting at
10:00 AM.
The next meeting will be held April 21, 2010 at Cary Memorial Library in the Learning
Center.
Loomis Sayles and SSgA will attend the meeting for quarterly reviews.
Robert W. Cunha, Chairman
Michael McNabb, Appointed Member
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
Alan Fields, Appointed Member