HomeMy WebLinkAbout2015-01-29-RB-minMinutes of the January 29, 2015 Retirement Board Meeting
Present: Robert Cunha, Alan Fields, Joe Foley, Rob Addelson, Frederick Weiss, Marguerite Oliva and
Karen Marchant
Bob Cunha called the meeting to order at 8:00 AM.
NEW MEMBERS: (8) Gina Rada, Veterans Director; Kimberly Hartka, SSP; Megan Avallone, ASA;
Hemali Patel, Senior Services Coordinator; Patricia Moore, Budget Officer; Brenda Fortier -Dube,
SCTA; Jeffrey Monagan, Laborer /Truck Driver; Daniel Burnell, Meter Reader
RETIREMENTS: Ginnie Caragliano, DPW Lead Assistant, 3/27/15; Gail Rehm, Admin. Asst. 1/30/15;
Joseph O'Leary, Police Captain, 1/31/15
DECEASED: John Brucchi, Firefighter, Nov. 22, 2014; Elizabeth Baird, Clerk, 12/29/14; Marie
Khachadoorian, School Lunch worker, 1/17/15
The Board accepted and signed the 01/30/15 Warrant and January payroll. The December 2014
minutes were reviewed and approved as well as the cashbooks for November 2014.
Stephen MacLellan and Henry Jaung from Meketa presented the Quarterly review for December 31,
2014. The market value as of 12/31/14 is $138 mil down from $139.8 mil as of 11/30/14 with YTD
performance up 6.9 %. They reviewed performance by asset class focusing on the Wellington
Opportunistic Fund, our largest holding, and suggested these funds should be used to fund the new debt
manager.
Meketa also presented the results of the Direct Lending Respondent Review. Meketa received 3
responses to the search; Brevet Capital Management, Golub Capital and White Oak Global Advisors and
compared them by providing a summary of criteria including strategy, performance, fund structure,
organization, investment team and fees with a rating for each. Alan would like Meketa to provide the
Gross IRR with a year by year comparison with and without leverage and also have a sector mix of the
portfolio with exposures. Both Golub and White Oak are considered to be the strongest candidates and
will be invited to the next board meeting.
In December Meketa issued and RFP for global tactical asset allocation managers and provided a list of
the 16 respondents they received. They are currently reviewing the submissions and will present the
results at the next board meeting.
It has come to the attention of the Board that the citizens of Lexington have engaged in communications
regarding the subject of Fossil Fuel divestment. A response from Michael Trotsky from PRIM has been
received. The Chairs of Pension Funds and Public Trusts will eventually be required to respond and the
Board should be prepared and we should rely on the resources and actions of PRIM to guide us. In the
meantime Meketa will research what investments in our portfolio, if any, invest in any fossil fuels.
Jake Brown, Bradley Huggins and Matthew McMenamy from Wellington Management Company were
present for the annual review. They reported as of December 31, 2014 Lexington's total market value
with Wellington is $28,746,462. Lexington invests in 2 funds, Opportunistic and Enduring assets. They
provided the philosophy of approach, portfolio construction, performance, key themes, positioning and
drivers and discussed the challenges of being underweight to the US and staying too long in thematic
exposures. They also reported that if the board was interested they could take advantage of a lower base
and performance fee. Motion by Bob, second by Joe and voted unanimously to accept the new fee
structure proposed by Wellington.
Ed Schollemeyer from Fidelity Asset Management was present for the annual review. Lexington invests
in Fidelity's Contrafund which has a market value of $17.7 mil as of December 31, 2014. He provided a
strategy overview, philosophy, investment process, components of risk management, sector weights, buy
& sell discipline and top 10 holdings. He also reported that although the Contrafund has produced an
average annual return of 13.32% since inception, it did underperform to the S &P for 2014 at 9.56% YTD
and conveyed to the Board Will Danoff's commitment to shake the performance.
It was reported that the 3rd quarter FY15 appropriation was transferred on 1/28/15.
The Vanguard balance as of 12/31/14 id $5,778,635.
Fidelity Expense reimbursement for the 4t1 quarter 2014 is $10,940.00 went into cash,
Frederick Weiss has been appointed to the Board on 1/12/15.
Medical Panels have been set for the ADR applicant and will move forward in February.
Memo # 39 regarding Mandatory Retirement Board Member Training for 151 Quarter 2015 has been given
to Board.
A motion was made, seconded and approved unanimously to adjourn the meeting at 11:30.
The next meeting will be held February 26, 2015, 8:00 AM at Cary Memorial Library.
Robert Cunha, Chairman Alan Fields, Appointed Member
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member