HomeMy WebLinkAbout2023-03-30-RB-minMinutes of the March 30, 2023 Retirement Board meeting:
Present: Robert Cunha, Joseph Foley, Alan Fields, Frederick Weiss, Carolyn Kosnoff, Michelle
Malone and Jim Condon
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. Chairman Robert Cunha called the meeting to order at 8:30 am.
The Board accepted the 033123 Warrant and the March payroll. The February minutes were
reviewed and approved. The January financials were not finalized at the time of meeting.
Robert Cunha reviewed the March agenda with all Board members and staff in attendance.
The Board has yet to hear any new information regarding Robert Magarian from Attorney
Michael Sacco.
It was noted there was a White Oak distribution for $16,468.00 on 03/27/2023.
Michelle Malone updated the Board on the Retirement offices being refurbished. Design and
measurements have been taken and submitted to the Facilities Dept. She is waiting to hear
back from them on the next pricing factors. Should hear back in 1-2 weeks.
The Notice of Election has been sent out to members and retiree s of the Lexington Retirement
System. One (1) seat is available commencing on July 1, 2023 to June 30, 2026. Robert Cunha,
Chairman of the Board, seat expires on June 30, 2023, and will seek re-election for a 13th Term.
The date of Election will be on June 22, 2023.
The Lexington Retirement Board voted on the yearly COLA for Fiscal Year 2024. The COLA will
be effective July 1, 2023. Robert Cunha made a motion to grant the 3% COLA on the first
$15,000.00. This motion was seconded by Joseph Foley, and unanimously approved by Carolyn
Kosnoff, Alan Fields, and Frederick Weiss.
Michelle Malone advised the Board our office received Disability Retirement paperwork for
Vartan Minasian on 03/20/2023. Mr. Minasian is a School Department employee who injured
himself on 05/27/2021 while hammering a sign post into the ground. The incident report states
he suffered a left abdominal injury. No other details as of this recap.
Robert Morency firefighter, submitted the necessary paperwork to request a buyback of
service. Mr. Morency wishes to purchase three (3) years and ten (10) months of service from
time served with the Essex County Retirement System at a cost of $52,646.28. He mentioned
he would make a lump sum payment. Robert Cunha made the motion to approve thi s buyback,
which was seconded by Joseph Foley, and unanimously approved by Fred Weiss, Carolyn
Kosnoff, and Alan Fields. Retirement staff will notify Mr. Morency of the decision via mail.
All Board members were sent PERAC Memo #10 regarding 2nd Quarter Board Training. Mr.
Cunha reminded the Board to look at the schedule of upcoming events and participate.
On March 29, 2023, Governor Healey signed into law a supplemental budget bill, which among
other things, extends the temporary provisions pertaining to the Open Meeting Law to March
31, 2025. This extension allows public meetings to continue remotely without a quorum of the
public body physically present at a meeting location. Robert Cunha asked the Board for their
thoughts on moving forward. Joseph Foley, Alan Fields, Fred Weiss, and Carolyn Kosnoff all felt
the Lexington Retirement Board should continue holding ZOOM meetings until further notice.
Stephen MacLellan presented the Meketa update at 8:45 am. The portfolio balance as of
February 28, 2023 was $196,295,840.00, down $5.07m from January. February saw a
downward slide in both Domestic and International Equity Assets. International was down
4.8%, while Global was down 5.1%. The Matthews Tiger fund took the biggest hit in the
portfolio, being down 7.1% for February. Driehaus also slumped, down 6.3%. Stephen did
mention our portfolio remains strong and in line with most others in the field.
Stephen took some time to explain the latest on the collapse of Silicon Valley Bank and what it
means to investors and other banks going forward.
The latest on the RFP’s was brief. Meketa received 14 responses, however most did not wish to
participate with the agenda set forth. Two have responded with interest. Meketa will do more
research and report back to the Board at the April meeting. Stephen wrapped up the
presentation at 9:05 am.
Charles Johnson and Julie Snaman presented the Acadian review at 9:05 am. Julie began the
meeting with an update on the company’s staffing and promotions within. Acadian now has
387 employees who continue to focus on research and innovation to lead them forward. Their
edge comes from embracing new ideas and the investment in technology and data. She
mentioned that 2020-2021 was a good year for Acadian, while 2022 was down 3.1% in the
value-added vs. benchmark portion. Charles Johnson mentioned the decline was due to some
risks taken in their Alpha model, which took some major hits. The European SMID model also
suffered, declining by 26%. Charles wrapped up the presentation at 9:35 am.
Sean Duff and Christopher Lund presented the Monroe update at 9:36 am. Sean gave a brief
overview of Monroe regarding staffing numbers and promotions. He mentioned Monroe
currently has over $16.1b in Assets under Management. Christopher mentioned the Monroe
fund is off to a great start in 2023. Direct lending has exceeded syndicated volume as of late.
Lower middle market continues to offer higher spreads and lower LTV’s vs. the traditional
middle market. Healthcare, technology, and business services have been the key drivers in
securing capital since Q4 2022. 105 company deals were brokered in 2022, with half of them
being new, while the others were add-ons. The average loan to value is at 37%. Sean and
Christopher wrapped the presentation at 10:05 am.
Robert Cunha made a motion to adjourn the meeting at 10:10 am, which was seconded by
Joseph Foley, and unanimously approved by Carolyn Kosnoff, Fred Weiss and Alan Fields.
The next Retirement Board meeting will be held via Zoom on Thursday, April 27, 2023 at 8:30
am.
RhumbLine Advisors will present.
_____________________________
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member