HomeMy WebLinkAbout2021-08-26-RB-min Minutes of the August 26, 2021 Retirement Board meeting:
Present: Robert Cunha,Joseph Foley,Alan Fields, Fred Weiss, Carolyn Kosnoff, Marguerite Oliva, and
Jim Condon
Absent: None
NEW MEMBERS: (19) Gabrielle Patterson, Taylor Larsen, Patricia Preta, Ashley Sivan, Student Support
Instructors; Marianne Reamer, Jiwei Li, Pallavi Atale, Adriana Tratch-Cocozza,Nicole Butterworth,
Jordan Dowling, Panvadee Sato, Mamata Banerjee, Anne Tracy, Lucas Rich, Brenda Favazzo
Instructional Assistants; Robin Davidian, Admin. Asst.-Dean; Hannah Coombs, School Monitor; Martha
Duffield, Chief Equity Officer; Justin Pasquarosa, Custodian;
RETIREMENTS: (2))Nathalie Rice, Town Clerk, 9/22/21; Lawrence Anderson, Parks Crew Chief, 9/30
DEATHS: (1) Barbara Smith, Asst. Town Clerk, 7/28/21
The Lexington Retirement Board met remotely through Zoom tele-conferencing during the Covid-19
Pandemic. The Town Clerks Office posted the meeting,which included the information for any
interested party to join the call. All Board members were present for this meeting. Chairman Robert
Cunha called the meeting to order at 8:30 am.
The Board accepted the 083121 Warrant and the August payroll. The July minutes and June financials
were reviewed and approved.
Robert Cunha reviewed the August agenda with all Board members and staff in attendance. It was
noted we received a distribution form Angelo Gordon for$71,483.00 on 7/30/21 and another from
Fidelity for$18,246.00. Angelo Gordon will be deploying a distribution on 8/5/21 for$118,971.00.
The Vanguard balance as of 6/30/21 is$23,870,853.00
The Board has no new information regarding Joseph O'Leary. Any new information will be posted for
the next meeting.
Attorney Michael Sacco has not returned any new information for the Robert Magarian overpayment
matter.
Jason Morey is now in compliance with PERAC regarding filing his paperwork for 91A earnings. Robert
Staples is still non-compliant, but has submitted the majority of his paperwork to PERAC. He is in a
pending status with PERAC.
Jon Christensen from Kayne Anderson Rudnick(KAR) presented the annual review at 9:05 am.
Currently, KAR holds nearly$61.2b in AUM,with sixteen Equity Investment Professionals dealing in the
SMID Core portfolio. The main objective of KAR is to achieve meaningful returns above the Russell 2500
Index on a consistent basis. KAR manages to achieve such returns by purchasing high quality businesses
with competitive protections. Purchasing low risk businesses should achieve the excess in returns over a
completed market cycle. This firm has managed positive returns on investments in 25 of the last 29
years. Their model is to buy at an attractive price and let exceptional returns on capital drive the growth
and income over an extended period of time. Business holding periods are usually 3-5 years, but could
be longer based on success. KAR's top performers over the Covid-19 era have been in the Energy and
Communications sector. It was noted that Bentley Systems, an infrastructure software firm, located in
Pennsylvania, has been one of the top contributors in the 2nd Qtr. 2021. They are an industry leading
software firm working with engineers and architects in the construction field helping to deliver software
solutions. It is to help accelerate and improve asset performance for the infrastructure that sustains our
economy and environment. Jon Christensen wrapped up his presentation of KAR's second quarter
performance at 9:30 am.
Henry Jaung and Stephen MacLellan presented the Meketa review at 9:35 am. The portfolio balance as
of July 31, 2021 is$224,109,357.00, up $275,501.00 from the prior month. Despite a slow July for
growth earnings,the portfolio is up 10.4%YTD, and up 23.7%over the last twelve months. It appears
the market is continuing its slow recovery due to the new Delta Variant sweeping the nation. Global
equities are underperforming as of late. Domestic equities remained up this past month. Most were
posting 1-2%over that span. KAR and Contrafund's net performances were 2-3% respectively.
Our portfolio positioning in the market is fine. Meketa does not see the need to start making any
moves, however will leave that door open for discussion at future Board meetings this fall.
Robert Cunha motioned to adjourn the meeting at 9:50 am,which was seconded by Alan Fields, and
unanimously approved by Joseph Foley and Fred Weiss.
The next Retirement Board meeting will be held via Zoom on Thursday, September 30, 2021 at 8:30 am.
Colin Edgar from Stone Consulting is expected to present at 9:00 am.
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member