HomeMy WebLinkAbout2023-02-23-RB-minMinutes of the February 23, 2023 Retirement Board meeting:
Present: Robert Cunha, Joseph Foley, Alan Fields, Frederick Weiss, Michelle Malone and Jim Condon
Absent: Carolyn Kosnoff
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, Alan Fields, Frederick Weiss, James Condon and
Michelle Malone were present for this meeting. Chairman Robert Cunha called the meeting to
order at 11:00 am.
The Board accepted the 022823 Warrant and the February payroll. The January minutes and
December financials were reviewed and approved.
Robert Cunha reviewed the February agenda with all Board members and staff in attendance.
It was noted there was an Angelo Gordon distribution on 1/31/23 for $231,672.00
Golub 9 reported a distribution on $81,495.00 on 2/3/23 and one for Golub 14 in the amount of
$69,780.00 on 2/7/23.
There was no new update on Robert Magarian from the Law Offices of Michael Sacco.
Robert Cunha mentioned to the Board that Joseph O’Leary Jr. matter is complete. Mr. O’Leary
will be receiving his remaining funds left over on the February 28, 2023 payroll.
Joanne Boyle requested to the Board to purchase two (2) years and six (6) months of service
towards her retirement. Ms. Boyle provided all the necessary paperwork showing her service
prior to becoming a benefitted employee with the Town. Robert Cunha made a motion to
accept the request, which was seconded by Joseph Foley, and unanimously approved by Fred
Weiss and Alan Fields. The Retirement Office will notify her of this decision.
Regarding PERAC Memo #4, the notice of upcoming COLA vote, Robert Cunha made a motion
to table the vote until the March 30, 2023 Board meeting. The motion was seconded by Joseph
Foley, and unanimously approved by Alan Fields and Fred Weiss. Mr. Cunha would like Carolyn
Kosnoff to be present for this vote.
Michelle Malone, Retirement Administrator, was giving the opportunity to request new office
furniture for the Retirement Board Office located in Town Hall. She is currently waiting to hear
back from a vendor. The Board mentioned the idea of pricing out the office for both Michelle
and Jim and have the work done together.
Stephen MacLellan presented the Meketa update at 11:15 am. The portfolio balance as of
January 31, 2023 was $201,370,444.00, up $10.7m from last month. Steve spoke briefly on the
state of the portfolio. Our allocation remains fairly unchanged heading into 2023. After a solid
month of returns in January 23’, Meketa will make no new changes going into the next month.
The strengths have been within the equity markets. The Fidelity Contrafund and KAR are doing
much better this year after a tough closing in 22’. Matthews is slowly working its way back
after a dismal year. Steve closed with mentioning our Equities in the portfolio remain high.
They will stay that way for the foreseeable future, but will keep a close eye on them. They had
issued RFP’s for Opportunistic funds. Wellington and GMO were the two to respond. Meketa
will research both and provide an update at the March 30, 2023 meeting. Steve’s presentation
wrapped up at 11:30 am.
Ken Solano, Scott Chandler, and Ken Baumbartner presented the Wellington funds at 11:31 am.
Scott began with a brief overview of the Wellington objective and approach. The Opportunistic
side focuses on exposure to opportunities that are underrepresented in traditional portfolios.
The feeling is to capture potential returns and diversify core allocations. They work off of a 3
step theory; Strategic Themes, Market Neutral Themes, and Tactical Themes. Within in this
strategy, the focus is on niche opportunities, absolute return, and risk management. Scott
spoke of the recent highlights at Wellington. The main one was the Eliminated Covid Recovery
as the thesis has run its course. With China reopening, the earnings have returned as the
market prices itself back. Other points of interest, they have added credit exposures that
diversity and are dynamic across economic landscape. Wellington has also rotated out of the
EV auto tech after 6 years. The EV theme seems to have played itself out over time. Ken
Baumgartner joined the discussion for the Enduring Assets portion. He gave a brief overview of
that portion of the portfolio. Currently, 55% of assets are in Utilities, while Transportation and
Mainstream sectors are at 10% each. Despite the portfolio being down 8% in 2022, the Q4 22’
numbers were up to 11.1%. He mentioned power producers and energy trades in the US were
a big factor. Other positive factors were Energy and Telecom companies. Ken wrapped up the
presentation at 12:20 pm.
Robert Cunha made a motion to adjourn the meeting at 12:25 pm, which was seconded by
Joseph Foley, and unanimously approved by Fred Weiss and Alan Fields.
The next Retirement Board meeting will be held via Zoom on Thursday, March 30, 2023 at 8:30
am.
Acadian and Monroe will present.
_____________________________
Robert Cunha, Chairman Alan Fields, Appointed Member
ABSENT
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member