HomeMy WebLinkAbout2021-10-28-RB-min Minutes of the October 28, 2021 Retirement Board meeting:
Present: Robert Cunha,Joseph Foley,Alan Fields, Fred Weiss, Carolyn Kosnoff, Marguerite Oliva &Jim
Condon
Absent: None
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 102921 Warrant and the October payroll. The September minutes and August
financials were reviewed and approved.
Robert Cunha reviewed the October agenda with all Board members and staff in attendance. It was
noted would receive a distribution from Angelo Gordon for$226,815.00 on 10/29/21. A Golub Capital
call will occur on 10/29/21 for$625,000.
The Board received notification from PERAC that Mr. Robert Staples is in compliance with his 91A filing.
After review of the latest ruling from the court, courtesy of Attorney Michael Sacco, the Board voted to
file an appeal of the decision in the matter of Robert Magarian. The Lexington Retirement Board was
denied by the courts a decision for a Real Estate attachment. Robert Cunha made the motion to appeal
the decision,which was seconded by Joseph Foley, and unanimously approved by Fred Weiss, Carolyn
Kosnoff and Alan Fields. The Board will continue to withhold Robert Magarian's entire monthly gross
retirement allowance, less health and dental premium payments.
A vote was taken to deny Jason Morey an appeal for overearnings based on his 91A filing with PERAC.
The Lexington Retirement Board was informed by PERAC that Mr. Morey had exceeded his earnings
capacity by$33,872.43. Mr. Morey emailed Sandra King at PERAC to explain his paperwork filing.
PERAC saw no differences to overturn the ruling. Mr. Morey was unable to provide additional
information to support his case that he did not over-earn in the year 2020. Robert Cunha made a
motion to deny Jason Morey's appeal of the ruling to pay back the funds owed to Lexington,which was
seconded by Alan Fields, and unanimously approved by Carolyn Kosnoff, Fred Weiss, and Joseph Foley.
Henry Jaung and Stephen MacLellan presented the Meketa update at 8:45 am. The portfolio balance as
of September 30, 2021 is$220,498,004.00, down roughly$8m from the previous month. September
was an off month for the market. Most primary market classes in our portfolio were negative for the
month. Domestic Equities took the biggest hit of the month, down 5.3%. KAR has held solid the past
few months, even though slightly down for September. International Equities also down for the month.
Matthews struggled, but it could have been worse. They carry high exposure within the China markets,
which continue to have major debt issues. Fixed income remained a positive for the month, posting a
plus 1.9%. According to Stephen, October figures should come in much higher by our next meeting. We
should see a rebound from the September portfolio numbers. The presentation concluded at 9:05 am.
The Board held a brief discussion on the OPEB account and funding schedule. The Vanguard fund
currently stands at approximately$25m. This fund is solely advised by Wellington. The fund holds
roughly 65% in equities and 35% in fixed income securities. This strategy has been performing well. The
town remains committed to putting in $2m per year to Vanguard. However,there is belief the town will
not have a surplus of cash coming in anymore. The feeling by Carolyn Kosnoff is to go with the 8 year
funding schedule at$750k per year at 7.25%. Robert Cunha motions to do the Funding Schedule for 8
years at$750k per year at 7.5%.This funding schedule also includes the$15k COLA base allowance. The
motion was seconded by Joseph Foley, and unanimously approved by Carolyn Kosnoff, Fred Weiss, and
Alan Fields.
Francesco Daniele from PRIT fund presented the update at 9:15 am. PRIT currently holds$95.7b in
Assets Under Management, utilizing 51 public market portfolios and over 100 private equity managers.
PRIT invests public employee pension benefits as a way to relieve the funding burden on the taxpayers.
Francesco highlighted there RE going well. It has been on the rebound from Covid-19. The medical
offices are 25%of the total RE portfolio. September numbers in RE continued to rise for the fund. More
people are heading back to the offices, and companies are acquiring office space. He mentioned Hedge
funds account for 7.4%of the entire PRIT fund, or$7.113. They continue to implement a carveout of the
Hedge fund into Stable Value and Directional components. He wrapped up his presentation at 9:40 am.
Chris Collins was scheduled to speak on the Robert Magarian matter. That has been rescheduled for the
November 22, 2021 Board meeting.
Robert Cunha motioned to adjourn the meeting at 9:45 am,which was seconded by Carolyn Kosnoff and
unanimously approved by Joseph Foley,Alan Fields and Fred Weiss.
The next Retirement Board meeting will be held via Zoom on Monday, November 22,2021 at 8:30 am.
Chris Collins from the Law Offices of Michael Sacco will update the Magarian matter at 9:00 am.
Tom Seftenberg from Driehaus Capitol is expected to present at 9:30 am.
The December Retirement Board meeting will be held on Monday, December 20, 2021.
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member