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HomeMy WebLinkAbout2022-01-27-RB-min RECEIVED 2022 08 l ell IN u Minutes of the January 27, 2022 Retirement Board meeting: 'iroWN CLERK L. : I N ti�"r O N M Present: Robert Cunha, Joseph Foley, Alan Fields, Fred Weiss, Carolyn Kosnoff, Marguerite Oliva and 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 013122 Warrant and the January payroll. The December minutes and November financials were reviewed and approved. Robert Cunha reviewed the January agenda with all Board members and staff in attendance. It was noted the Vanguard balance as of 12/31/21 was $25,833,828.00. The Board is in receipt of several distributions. Monroe made two (2). One distribution for$427,533.00, and the other a rebalancing net distribution of$1,005,629.00. White Oak also made two (2) distributions last month; $58,535.00 and $127,309.00 respectively. Also note, our office received notification prior to this meeting of a distribution to hit on January 31s' in the amount of$719,992.00. Our audit report pertaining to the use of the credit card was briefly discussed. Carolyn Kosnoff reiterated that card use must remain under the guidelines set by the Town of Lexington. She will send out the policy to Board Members and Staff for review. There are zero issues with credit card charges or abuse pertaining to this matter. Scott Donahue applied for a Military buyback purchase of four(4) years of creditable service. Included in the request, he asked for a buyback plan via payroll deductions of a span of five (5) years. Robert Cunha made a motion to accept the Military buyback request, which was seconded by Joseph Foley, and unanimously approved by Carolyn Kosnoff, Fred Weiss, and Alan Fields. The Retirement Board will send Mr. Donahue an acceptance letter and contract of the buyback terms. The COLA (cost of living adjustment) base increase for July 1, 2022 will be discussed and voted upon at the February 18, 2022 Retirement Board meeting. It was noted that the SJC has received the Docket Entry regarding the Joseph O'Leary case on January 19, 2022. We will wait to hear updates from Attorney Michael Sacco as they become available. The Board was notified that retiree Robert Magarian passed away on January 8, 2022. Mr. Magarian's pension had been terminated on February 1, 2021 due to overpayment. The Board will seek guidance from Attorney Michael Sacco on the next course of action to recoup funds owed to the Lexington Retirement Board. All Board members were notified of their obligation to comply with Board Training, if needed, per PERAC Memo #6 for 111 Qtr. 2022. Henry Jaung and Stephen MacLellan present the Mekate update at 8:50 am. The portfolio balance as of December 31, 2021 was $228,700,158.00, up $5.6m from the prior month. Markets have been a bit turbulent as of late due to the uncertainty of inflation and interest rates. The Covid-19 virus and variants are still a major issue with the market as well. January 2022 has been turbulent to say the least. Markets have dipped 10%, and then rebounded back to familiar territory. All eyes are on upcoming potential rate increases. Henry made note of PRIT, and how well they managed their portfolio over the past year. The private equity market did phenomenal for them. PRIT's private equity holding is at 16% of their portfolio. Lexington does not invest in private equity, but rather in public equity. Our US equity holdings are currently 38% of the total portfolio. The private debt portfolio has been doing well for the portfolio. Monroe and Golub are performing as expected. Weight of return should be noticeable in the portfolio in a few months. Real Estate reporting should commence on the February Meketa update. Lexington just entered this sector in early January. Any market volatility should not sway the performance in RE, which was pleasant to hear. Lastly, Henry Jaung made the announcement that co-worker, Thomas Dunleavy, will be departing Meketa. Thomas was introduced and personally thanked Henry, Stephen, and the Lexington Retirement Board for the years he worked with us. Thomas will be conducting research with another firm in the coming months. The Board and staffed thanked him for his service to Lexington and wished him well. Robert Cunha motioned to adjourn the meeting at 9:20 am, which was seconded by Joseph Foley, and unanimously approved by Carolyn Kosnoff, Alan Fields, and Fred Weiss. The next Retirement Board meeting will be held via Zoom on Friday, February 18, 2022 at 8:30 am. ....... .............. ... ........... ... ........... ............ ........ Robert Cunha, Chairman Alan Fields, Appointed Member .............. .......... ............. ............. ............. ..................... .... ............. ............. ............. ............. ...................... Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member ........... ............. ................. ......... .................. ................. Frederick Weiss, Appointed Member