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HomeMy WebLinkAbout2009-01-22-RB-minMINUTES OF THE JANUARY 22, 2009 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 013009 warrant and the January payroll. The Board noted 14 new members: Emily Lavine, Asst. Director of Human Services; Laurie Henry, Youth Services Asst. Director; Craig Hall, Comm. Ed Director; Aaron Paskaslis, Firefighter; Dorinda Goodman, IT Director; Amanda Sullivan, Shanna Hayes - Bowie, Kelsey Anderson, Susan Gurry, Allison Webster, Catherine Hauke - McCarthy, Christopher Allen, Sosi Toomajanian, Sheera Knecht; Instructional Aides The Board noted 5 deceased .members: Theresa Shields, 12113/08, School Dept. Opt. A; Lorraine Theriault, 12125108, DPW Clerk, Opt. B depleted; Janet Janusas (non- contrib. Survivor of John) 12120108; Betty Dalrymple, School Clerk, Opt. B depleted, 12125108; Mildred Cronin, Survivor of Cornelius P. Cronin, 111109 Fran Peters and Lou Ann Eisenhut from Meketa presented the 4 th quarter 2008 investment review. They determined that the market value for December 31 was approximately $80.2 million. Fran did indicate that December was a good month but so far in January, the gain has been lost. He presented a broad market overview. GDP growth declined 5% in the fourth quarter. It is felt that President Obama's stimulus package of $3 Trillion is a good starting point. The unemployment rate reached 7.2% which is the highest since 1993 and it could reach 10 %. There was an extended discussion of the system going forward. Alan noted the investments are about equal between equity and alternative. The discussion revolved around whether to stay with the current portfolio or if it should be changed from the 50150. Is it the right strategic allocation and where will the conviction be when things start to rebound? Alan suggested that the Board should probably meet more then once a month while the market is so volatile. The current equity holdings are about 43% and alternative 40% alternatives. The domestic holdings are approximately 31 % of the portfolio. Alan feels the emerging markets will do better in the rebound. Review by Mike; proponents of credit strategies given the uncertainties in the equity markets, low allocation to fixed, he believes in emerging markets - long term but emerging markets are too volatile now, developed markets need to stabilize first. Need to move more toward credit for some diversification away from global equity positions. Alan feels 4% of PIMCO cut be used to fund hedge funds. Before a hedge fund manager can be chosen and moneys are transferred, Meketa and the Board will do their due diligence. Alan feels that June would be the earliest that any allocation could be made. He noted the importance of transparency with any manager. Meketa will start the RFP process. A motion was made, seconded and approved unanimously to move 4% of the SSgA Passive Bond to Wellington Opportunistic Fund. The Board requested that the decision of changing to Matthews, Aberdeen or stay with Wellington for the Asia PC ex -Japan manger be placed on the February agenda. Alan briefly discussed the Matthews Tiger Small Cap could be used to replace the Wellington fund. Since Matthews interview was done by conference call, Alan did propose an interview in person. There was a brief discussion regarding the Buck actuarial study that was completed regarding the school tutors and aides. Bob suggested a meeting be set up with Superintendent Ash and the school human resource department to discuss the issue of future liability to the Town of Lexington. Rob had not had time to review the study and asked that the discussion be postponed until next meeting. A motion was made, seconded and approved unanimously to grant a 3% COLA for FYI 0 effective 711109. PERAC will be notified. A motion was made, seconded and approved unanimously to adjourn the meeting at 10:45 AM. The next meeting will be held February 25, 2009 in the Town Hall. Robert W. Cunha, Chairman Michael McNabb, Appointed Member Robert Addelson, Ex Officio Member Joseph Foley, Elected Member Alan Fields, Appointed Member