HomeMy WebLinkAbout2022-08-25-RB-minMinutes of the August 25, 2022 Retirement Board meeting:
Present: Robert Cunha, Joseph Foley, Carolyn Kosnoff, Fred Weiss, Marguerite Olive and Jim Condon
Absent: Alan Fields
The Lexington Retirement Board met remotely through Zoom tele -conferencing. The Town
Clerks Office posted the meeting, which included the information for any interested party to
join the call. Robert Cunha, Joseph Foley, Fred Weiss and Carolyn Kosnoff were present for this
meeting. Alan Fields was unable to attend. Chairman Robert Cunha called the meeting to
order at 8:30 am.
The Board accepted the 083122 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 two (2) White Oak distributions; one for $18,791.00 on 8/8/22 and
the other on 8/9/22 for $44,073.00. A distribution from Golub 9 was received on 8/9/22 for
$35,000.00, and a Golub 14 distribution for $49,480.00 came in on 8/10/22. We also had a
Fidelity Q2 2022 Plan Expense reimbursement of $16,448.00
The Board received a decision in the Joseph O’Leary case. This decision was distributed to the
Board Members of the Lexington Retirement System on 8/12/22 for review. The ruling is in
favor of the Lexington Retirement System based on the facts that payment in lieu of unused
vacation time does not qualify as “regular compensation”.
There has been no new update on the Robert Magarian matter.
Andrew McAleer provided a letter to the Board to request a Military service buyback for five (5)
months and seventeen (17) days. After review of his DD -214’s, it was determined Mr. McAleer
was discharged from Active Duty Training for the time in question. Therefore, the Board voted
to deny the buyback request on the grounds that Active Duty Training cannot be purchased.
Robert Cunha made the motion to deny the buyback, which was seconded by Joseph Foley, and
unanimously approved for denial by Fred Weiss and Carolyn Kosnoff.
Robert Cunha discussed the issue with the Board regarding Marguerite Oliva’s replacement.
One suitable candidate accepted the position of Retirement Administrator, but then declined
recently. The job has been reposted on the PERAC website. Marguerite was schedul ed to
retire, but will remain on as Administrator until a new candidate is selected for the position.
Joseph Foley mentioned the idea of having all future Board Member elections held via ballot
mail in only. Ballots would go out to retirees and employees via mail, then returned in the
same fashion. Other Boards are starting to hold elections this way. Robert Cunha asked Jim
Condon to check in with PERAC to acquire some information. Jim will report back findings at
the next Board meeting.
All Board members in attendance were reminded of their responsibility to maintain Board
credits. PERAC Memo #17 has listed 3rd Quarter Board training classes for credits.
Stephen MacLellan and Gloria Hazard presented the Meketa update at 8:50 am. The portfolio
balance as of July 31, 2022 was $199,973,282.00, up $7.6m from the June report. Domestic
equity assets are starting to rebound, up 9.4% in July. KAR and RhumbLine were up for the
month, both over 9.3%. International equities were up, but just slightly at 2.9%. Meanwhile,
the Global Tactical Assets were up 4.5% last month. The markets are beginning to show
improvement heading into this 3rd Quarter. Steve mentioned the YTD relative performance is
actually doing better than the 60/40 Benchmark. Managers out the re are seeking more growth
exposure and have been able to utilize several allocations of funds.
Steve gave an overview presentation of the Private Debt strategies. Our Golub 9 fund has
generated a net IRR of 9.7% since September 2015, while the Golub 14 fund has reached a net
IRR of 12.4% since our October 2021 inception. He spoke about exploring more opportunistic
approaches to private debt. Depending on market conditions, look at more varied loan types
and sourcing. The Board will review the two types of management pipelines Steve explained in
the booklet. It would be a standard commitment of 3 years, with a life cycle of 3 -4 years. The
fund life would be around 7 years, with a wind down period of 2 -3 years after the fund life.
Management fees land around 1.5% - 2.0%. Further information and discussion will be held at
the next Board meeting. Steve’s presentation wrapped up at 9:20 am.
Robert Cunha made a motion to adjourn the meeting at 9:25 am, which was seconded by
Joseph Foley, and unanimously approved by Carolyn Kosnoff and Fred Weiss.
Future Board meeting dates: October 27th, November 21st, and December 22nd
The next Retirement Board meeting will be held via ZOOM on Thursday, September 22, 2022 at
8:30 am.
_____________________________ ABSENT
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member