HomeMy WebLinkAbout2013-03-21-RB-minMinutes of the March 21, 2013 Retirement Board Meeting
Present: Robert Cunha, Joe Foley, Alan Fields, Mike McNabb, Rob Addelson, Marguerite Oliva,
Karen Marchant
Bob Cunha called the meeting to order at 8:00 AM.
The Board accepted and signed the 032913 Warrant and March payroll. The February minutes
were reviewed and approved.
NEW MEMBERS: (7) Michael Patenaude Jr, Water Dept Maintenance; Dane Bertrand, Meter
Reader. Blythe Sloan, IA; Michael Naughton, Fire Fighter; Alissa Lauzon, Library Head of
Children Services; Caren Venuti, SSI; Mary Zeytoonian, Library Aide
RETIREMENTS: Claudia Sheffield, Benefits Coordinator, 5113/13
DECEASED: Evelyn Burnell, School Sec., Opt B depleted, 3/2/13
The FY' 14 COLA of 3% on the first $12,000 was accepted after Joe made the motion to grant the
COLA increase and Bob seconded.
Henry and LouAnn from Meketa were present for the meeting. There was a discussion of which
investment to use to fund the Index Fund provider once approved by PERAC. Originally there
had been talk of transferring all of Hartford to the index fund after hearing of Saul Pannell's
pending retirement and noting some concern of the performance. It was determined that currently
Hartford has been doing well and since Mr. Pannell is not leaving immediately, withdrawing the
funds is not urgent.
In reviewing the aggregate assets it was noted that 66% of the assets are equity investments with
a target allocation of 59 %. Fidelity Contrafund is the largest holding with a market value of
$19.4mm.
RhumbLine was the only RFP responder to the request for a Russell 1000 Pooled Index Fund.
Zela Zstarjian and Norm Meltz made the presentation. RhumbLine has been in business for 22
years and have $28.5 Billion in assets under management and have a diversified client base.
Mike asked if RbumbLinc offers a Russell 2000 and was told by Mr. Meltz that he would check
on it.
A motion was made by Alan, seconded by Mike and approved unanimously to invest $5mm with
RhumbLine.
Henry and LouAnn provided an interim update of the system. The market value on Feb. 28' was
$119.8 mm. It was noted that the total equity is above the target and fixed income is below
target. A return to equity target was discussed and the decision was .made to maintain the equity
overweight at this time. There was a discussion of transferring $5mm for PIMCO All Asst to a
debt manager when chosen and to transfer $5mm from Contrafund to the Russell 1000 upon
approval from PERAC.
In January Meketa posted an RFP for Private Debt/Opportunistic Debt managers to enhance LRS
fixed income allocation. There were responses from Maranon, Monroe and White Oak. Meketa
had spoken with several managers who declined to respond, some due to PERAC RFP
regulations and some due to the size of the investment. The Meketa report included information
for each of those who responded. Mcketa will narrow it to two finalists for discussion at the
April meeting and interviews will be held in May.
John Bartenstein, a member of the appropriation committee and Andrei Radulescu -Banu,
attended the meeting. After the Board's investment discussion which included a discussion of
fees and the use of mutual and commingled funds, they seemed satisfied that the questions had
been answered effectively. In response to a question John Bartenstein had regarding a Globe
article "Mass. State pension fund strong in 2012 ", Meketa ran a LRS comparison report that
showed LRS outperformed the State in 2010 and 2012. The Board reviewed PERAC's 2009
Retirement Board Professional Services Report. Henry noted LRS fees are average compared to
peer groups. The system's investments with Fidelity, Hartford, FMI, Matthews, PIMCO All
Asset and PIMCO Global Multli -Asset are mutual funds which are lower in fees. Mutual funds
are utilized because these managers do not offer commingled funds. The Board determined that
the quarterly Meketa reports are sufficient to download to the Town's website.
Rob mentioned that the Town has agreed to pay half of the $8,378 charge from Buck Consultants
for the "computation of valuation results under alternative funding assumptions..." An invoice
will be created.
Acadian will be invited to attend the April 25t" Board meeting.
The Board members were given PERAC memo 48 regarding On -Line Training for Educational
Credit and the PERAC Pension Newsflash regarding Open Meeting Law Regional Workshops.
There are four regional workshops upcoming set up by the Atty. General.
The 2012 Annual Report was reviewed and signed.
An effort will be made to post the minutes on the Town of Lexington website.
Karen's review will be done in April.
A motion was made, seconded and approved unanhnously to adjourn the meeting at 10:45.
The next meeting will be held April 25, 2013, 8:00 AM at Cary Memorial Library.
Robert W. Cunha, Chairman
Michael McNabb, Appointed Member
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
Alan Fields, Appointed Member