HomeMy WebLinkAbout2023-06-22-RB-min (rev)Minutes of the June 22, 2023 Retirement Board meeting:
Present: Joseph Foley, Alan Fields, Carolyn Kosnoff, Fred Weiss, Michelle Malone & Jim Condon
Absent: Robert Cunha
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. Joseph
Foley, Alan Fields, Frederick Weiss, Carolyn Kosnoff, James Condon and Michelle Malone were present
for this meeting. Joseph Foley called the meeting to order at 8:30 am.
The Board accepted the 063023 Warrant and the June payroll. The May minutes were reviewed and
approved. The financials were not available at the time of meeting.
Joseph Foley reviewed the June agenda with all Board members and staff in attendance.
Mr. Foley noted there was one distribution on 05/26/2023 from Monroe Fund IV in the amount of
$83,796.00. A second distribution from Angelo Gordon is expected on 06/23/2023 for $176,324.00.
Michelle Malone informed the Board the office renovation for the Retirement Offices is scheduled for
July 13, 2023 and should be completed by July 18, 2023.
Jim Condon gave an update on the Annual Benefit Verification requirement for retirees. As of 06/21/23,
the office has received 420 completed forms. The 46 outstanding retirees had a second notice recently
mailed to them for completion.
James Weston submitted a letter regarding paying off his balance for overearnings. He had signed a
promissory note years ago that the overearnings would be paid in full in 2023. His remaining balance is
$4,024.13. The intention of the letter was to be sure his AD Disability retirement allowance would be
restored to PERAC’s modifications. Once the balance is paid in full, our office will move forward with his
request after a check in with PERAC.
Stephen MacLellan and Henry Juang presented the Meketa update at 8:40 am. The portfolio balance as
of May 31, 2023 was $199,896,960.00, down $2.8m. Steve mentioned activity around the markets are
just less interesting as of late. The Debt ceiling issue was resolved, yet still had some issues surrounding
it. The stock market held its own after the President signed off. Markets are still monitoring the
inflation aspect and the Federal Reserve’s power to ease rates. The reopening of China is still
concerning. It has not gone as well as investors would have expected these past few months.
International and Global equity assets remain close to 5% down QTD. Matthews, Wellington and
Acadian were all down 5% last month. Domestic Equities were flat in May, but all have posted positive
numbers QTD. Meketa wrapped up the presentation at 8:55
Catherine Haviland and Drew Guyette presented the Angelo Gordon review at 9:00 am. Catherine first
noted the merger between AG and Twin Brook. There are no expected changes in the management
style and portfolio at this time. They will remain a Direct Lending firm. AG has maintained a decent year
with all that has been happening the past few months. They have ample cash to fix the cracks with
some of their borrowers who have struggled as of late. None have hit the default status on their loans,
which is amazing considering the interest rates and costs of doing business. Borrowers have had to deal
with three (3) prices increases over the past eighteen (18) months. Labor, supply chain issues, and raw
material prices have all risen. Drew mentioned the AG Fund III is in harvest mode. This fund had
performed well in excess of the range it was set. Other funds, such as Fund IV & V are also doing fine.
He attributes this to the fact AG deals with low name businesses that hold loans. AG tends to not deal
with big name companies seeking loans. They avoid construction and energy commodity sectors. He
wrapped up the review at 9:30 am.
Board members were reminded to keep up with course credits and review future webinars on PERAC.
Joseph Foley made a motion to adjourn the meeting at 9:35 am, which was seconded by Carolyn
Kosnoff, and unanimously approved by Fred Weiss and Alan Fields.
The next Retirement Board meeting will be held on Thursday, July 27, 2023 via ZOOM.
Future Board meeting dates will be August 24th and September 28th.
_____ABSENT__________________
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member