HomeMy WebLinkAbout2022-06-23-RB-minMinutes of the June 23, 2022 Retirement Board meeting:
Present: Robert Cunha, Joseph Foley, Alan Fields, Carolyn Kosnoff, Marguerite Oliva, and Jim Condon
Absent: Frederick Weiss
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. Robert Cunha, Joseph Foley, Alan Fields,
and Carolyn Kosnoff were present for this meeting. Fred Weiss was unable to attend. Chairman
Robert Cunha called the meeting to order at 8:30 am.
The Board accepted the 063022 Warrant and the June payroll. The May minutes and April
financials were reviewed and approved.
Robert Cunha reviewed the June agenda with all Board members and staff in attendance.
It was noted we received a distribution from White Oak in the amount of $220,363.00. A
distribution from Angelo Gordon was received on 6/10/22 for $139,909.00.
The Board reviewed an email request for a buyback regarding cadet time from a newly hired
employee with the Lexington Police Department. Unfortunately, the new employee has yet to
take the exam with LPD as a dispatcher, therefore is not q ualified to purchase time as this
moment. The employee will be notified.
There is no new information to report from Michael Sacco, Esq. regarding the matters of Joseph
O’Leary and Robert Magarian.
Carolyn Kosnoff spoke briefly about the OPEB fund and Stone Consulting. For now, the fund is
hovering around $25m. She wanted to inform the Board our fund is still under special state
legislation, but we could possibly move to the standard state structure. It requires little work
and the auditors are fine where we currently stand. It will be a discussion at Town Meeting.
This is a topic that will need to be revisited by the fall. She will seek opinions with the Town
Manager & Council. The focus will be on diversifying some of the $25m into other asset clas ses.
Michelle Joyeux, Peter Kenny, and David Manzano presented the Golub Capital update at 8:55
am. Michelle spoke of the Q1 2022 performance for the portfolio. Our Golub GCP Fund 9 had a
net return of 3%, as did the GCP Fund 14. She mentioned the earnings growth across middle
market private companies within their strategy was much stronger than the same time last year
during Covid-19. It is a reflection of an economy that continues to grow, albeit at a slower pace
than the calendar year 2021. Middle market deal activity has slowed down, but not
dramatically. The companies within the portfolio continue to have stable ratings, low default
rates, and solid net realized and unrealized gains. Peter and David mentioned that Q1 2022 was
very active. It is attributed to their existing borrowers in the portfolio. They continue to lend
funds in the Middle Market Origin by Borrower EDITDA. The target range for them is $20 -
$60m. Those are the deals for which they excel. Golub representatives concluded the
presentation at 9:25 am.
Henry Jaung and Gloria Hazard presented the Meketa update at 9:30 am. The portfolio balance
as of May 31, 2022 was $205,523,461.00, up $491,028.00 from the May report. Markets
continue to struggle in most asset classes, including the Lexington portfolio. Global equity
assets posted a positive 3.8% for May, and now only down 0.7% for YTD. Driehaus and KAR
have shown some improvement since the last report. Contrafund continues to struggle during
these tough times. Fixed income remains flat, but not hurting the portfolio. Golub has been a
key driver in this sector. They are up 3% YTD. International Equity Assets remain down 10% -
15% for the year. Matthews Tiger continues to take the biggest hit to the portfolio, down
14.1% YTD.
Henry gave a brief overview of potential Large Cap Value Firms for potential manager options.
He mentioned three (3) potential firms. Aristotle Capital Management, Independent Franchise
Partners, and Newton. The June Meketa materials book lays out a summary of each firm
beginning on page 17. He asked us to review the material and he will report back to us at the
July meeting with thoughts. Henry plans to share a comparison analysis between the Russell
1000 and the Russell 1000 V to the Board in regards to exposure. His presentation wrapped up
at 10:05 am.
Robert Cunha motioned to adjourn the meeting at 10:10 am, which was seconded by Alan
Fields, and unanimously approved by Carolyn Kosnoff. Joseph Foley had to leave the meeting
at 9:55 am.
The next Retirement Board meeting will be held in person on Thursday, July 28, 2022 at 8:00
am in Cary Memorial Library.
_____________________________
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
** ABSENT **
Frederick Weiss, Appointed Member