HomeMy WebLinkAbout2022-04-28-RB-min RECEIVED
022 01 Juin, 1 M pui °m
TOWN CLERK
Minutes of the April 28, 2022 Retirement Board meeting: LEXINGTON MA
Present: Robert Cunha,Joseph Foley, Alan Fields, Frederick 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. Chairman Robert Cunha called the meeting
to order at 8:35 am. All Board members were present for the meeting.
The Board accepted the 042922 Warrant and the April payroll. The March minutes and
February financials were reviewed and approved.
Robert Cunha reviewed the April agenda with the Board members and staff in attendance.
It was noted there was a Golub Capital Call for$500,000.00 on 4/1/22, and a Monroe Capital
Fund IV on 4/13/22 for$498,016.00. Two Monroe disbursements were made, one for
$34,343.00 and the other for$14,589.00. Angelo Gordon will be processing a distribution on
4/29/22 for$195,764.00.
The Vanguard balance as of 3/31/2022 was posted for$25,873,600.00.
Robert Cunha noted the Joseph O'Leary Jr. matter is in process with the SJC. Attorney Michael
Sacco will provide an update in the near future.
The Board was briefed on the health care deduction issued for retiree Peter Karalexis. It was
determined Mr. Karalexis had a health deduction that was not manually updated back in 2019.
He was paying an incorrect rate up through March 2022. The Human Resources Dept. and
Retirement Board decided Mr. Karalexis will be responsible for paying back the shortage for the
present fiscal year. He will not having to repay going back the full three (3) years.
The notice of Claim and Demand for payment for Robert Magarian remains unresolved as of
April 28, 2022. The Law Office of Michael Sacco will update as information surfaces.
Stephen MacLellan and Gloria Hazard presented the Meketa update at 8:45 am. The portfolio
balance as of March 31, 2022 was $218,633,811.00, up $4.1m for the February report. Based
on latest update from Stephen, the portfolio number slid to $217,593.839 post 3/31/22. It is
still remains on the positive side into April. He noted April has been up and down with the
markets. Our fixed income is down, but holding steady. Long term rates and returns are
strong, even during this difficult first quarter. Amongst the other public plans, Lexington still
performing at a high level. Our two detractors as of late are in the International Equity Asset
class. Matthews Pacific is down 11.5%for the quarter, while Acadian is down 5.7%. Despite
Driehaus being down, it has outperformed the benchmark set. On the Fixed Income side of
portfolio, there have been solid returns for current yields at this stage of quarter. Steve noted
there will be some markdowns as interest rates reset; which is happening more frequently.
They will eventually balance out according to Steve. As for potential gain in market, Fred asked
if Meketa sees anything attractive in the Opportunistic sector. Per Steve, they have been
monitoring the situation and currently find nothing out there worth seeking at this time. He
mentioned Meketa will keep an eye out for opportunities.
Gloria Hazard presented the Board with the latest Fossil Fuel update. As of March 31, 2022,
roughly 5.0% of the total Fund was invested in fossil fuels. That is an increase from the
December 31, 2021 report of 3.9%. Note: Of the 5.0% invested in fossil fuels, 4.7%was
exposed in equities, while the remaining 0.3%was within opportunistic assets.
Meketa concluded the presentation at 9:15 am.
Robert Cunha motioned to adjourn the meeting at 9:20 am, which was seconded by Frederick
Weiss, and unanimously approved by Joseph Foley, Carolyn Kosnoff, and Alan Fields.
The next Retirement Board meeting will be held via Zoom on Thurs, May 26, 2022 at 8:30 am
Beginning with the June 23, 2022, the Lexington Retirement Board will resume in-person Board
meetings in the Parker Room located on the ground floor of Town Hall. Jim Condon will
research other venues within the Town for a possible site change.
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member