HomeMy WebLinkAbout2014-08-27-RB-minMinutes of the August 27, 2014 Retirement Board Meeting
Present: Robert Cunha, Alan Fields, Joe Foley, Rob Addelson, Marguerite Oliva, Karen
Marchant, Mike McNabb
Bob Cunha called the meeting to order at 8:00 AM.
NEW MEMBERS: (11) David Cottam, Michael Powers, Dispatchers; Dale Dean, Admin. Asst.;
Christopher Abisla, Firefighter; Ryan Smith, Facilities Financial Assistant; Laura Silverman, Kristen
Gahagan SSI; Michael Sprague, Engineering Asst.; Katherine Costa, IA; Jaclyn Carlozzi, SPED IA;
Richard Sampson, Custodian
RETIREMENTS: Violet Robbat, Aide, 6/30/14; Cynthia Johnson, Asst. Director, 10/31/14; David
Lattanzio, Laborer, 9/2/14
DECEASED: Barbara Bello, School Secretary, 7/5/14
The Board accepted and signed the 0829114 Warrant and August payroll. The August minutes
were reviewed and approved as well as the cashbooks for July 2014.
Henry Jaung and Steve MacLellan from Meketa presented the interim update. The market value
on 7/31/14 was $137.5mm, down from $138.1mm on 6/30/14. The aggregate asset year to date
performance shows a gain of 5.3 %, outperforming the actuarial target and benchmarks of 4.5 %.
For domestic equity, it was noted that both Hartford and Contrafund underperformed and
Fiduciary outperformed the benchmarks. The Board compared the holdings of both investments
which helped to explain the different performances. A report showing the correlation of
Hartford and Contrafund from 12/1/06 — 6/1/14 was included.
Henry felt that the lack of Private Equity investments in the portfolio compared with PRIT' s
11 %, has caused some underperformance. Henry discussed the Wellington Hadley Harbor
Private Equity Fund which has a target launch date of October 2014 and will be managed by
Saul Pannell. After a discussion about the merits and constraints of private equity, the Board
decided not to invest in private equity due to the sensitivity to the liquidity needs of the
Lexington Retirement System.
The Board will continue to have a more defensive, conservative approach for equity with the
possibility of increasing the Fiduciary holding.
There was a discussion on looking for another real estate investment as Beacon Capital will soon
becoming due and that will leave almost zero exposure in the real estate market. Core plus real
estate was mentioned as an alternative with the possibility of a 4% - 5% exposure possibly taken
from domestic equity which would cause in increase in international equity. Henry was asked to
put out a search for Core Plus RE now so a decision could be made in early 2015.
A decision was made that any excess cash should be invested with the PRIT Hedge Fund as long
as the investment does not exceed 10% of the portfolio. State Street will provide the cash
balance. Domestic equity will be used if funds are needed to cover monthly expenses.
Rob asked that the discussion of the actuarial study be postponed to the September meeting. Bob
wants to include discussing an increase in the COLA base and perhaps shortening the funding
schedule now that the pension holiday and ERI have been retired. A decision should be made
before October when the actuarial information needs to be sent to PERAC.
There was a discussion of the "once a member, always a member" issue as school employees
who have been members are being let go as their assignment ends in June and then rehired in
September with fewer hours and being placed into OBRA. The Board will consider adopting a
regulation. Atty. Mike Sacco will be queried on the issue and asked for recommended language.
Permission was granted to allow a short term subscription to "People Finders" in order to try to
find some of the inactive members whose statements are being returned.
It was decided to have the PERAC Funded Ratio study and the State Street performance report
entered on the Town website along with the minutes. State Street will be asked to add Lexington
Retirement System's 60/40 target to the report.
Joe Haynes failed to submit his 91Form to PERAC. A certified letter was sent to him noting he
needed to respond to the Board if he wanted a hearing. No response received.
The Board completed new signature authorization forms for the investment companies. A
motion was made by Bob, seconded by Joe and was approved unanimously for Marguerite to act
on behalf of the Board with the investments held in the portfolio.
The Board was reminded of the upcoming Emerging Issues meeting on September 18th and the
PERAC meeting that will be held here on September 30th
The Administrator's Annual Review was postponed to the next meeting.
The annual meeting for Matthews will be held on September 304 FMI and PIMCO will be held
on October 23rd and PRIM will be held on December 22nd.
The election notice for Joe's term which ends on 12/29/14 will be sent out on September 19th.
A. motion was made. , seconded and approved unanimously to adjourn the meeting at 10:00.
The next meeting will be held September 30, 2014, 8:00 AM at Cary Memorial Library.
Robert Cunha, Chairman Michael McNabb, Appointed Member
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
Alan Fields, Appointed Member