HomeMy WebLinkAbout2016-01-28-RB-minMinutes of the January 28, 2016 Retirement Board Meeting
Present: Robert Cunha, Joe Foley, Alan Fields, Rob Addelson, Fred Weiss, Marguerite Oliva, and Karen
Marchant
Bob Cunha called the meeting to order at 8:00 AM.
NEW MEMBERS: (6) Nicole Skotz, SST; Michael Sullivan, Custodian; Meredith Culhane,
School Tech. Maintenance Assoc.; David Fields, Planner; Brendan Crocker, Arborist;
Christopher Hudson, Laborer
RETIREMENTS: Linda Judkins, 1/22/16, Lexpress Municipal Clerk; Robert Cunha, Lieutenant
Fire Prevention Inspector, 1/31/16
The Board accepted and signed the 012916 Warrant and January payroll. The December 2015 minutes
were reviewed and approved as well as the cashbooks for November 2015.
There were requests for police lay -off buybacks from John Frissore and Brian Savage. A motion
was made, seconded and approved unanimously to grant both.
There was a discussion of the PERAC Investment Fee report and Schedule 7 that has to be
included with the Annual Statement. This report includes management, custodial and consultant
fees. It was noted that Lexington Retirement is paying in excess of $1.5m in management fees.
Meketa has helped to determine the fees paid by the investments that record net amounts.
The Vanguard balance as of 12/31/15 is $6,380,067.
The annual COLA notice from PERAC has been received and posted. A vote will be taken at
the next meeting.
Laura Creedon has filed an appeal with DALA stating she has been denied due process and a
motion to expedite was granted. Response from DALA refers to a problem with the Board
accepting a "purchase of service at issue ". Mike Sacco's response mentions DALA being
confused. Laura has until 2/15/16 to file a pre - hearing memorandum. Mike Sacco will handle
this matter.
PERAC Memo #5 for the lst quarter 2016 Board Member Training was given to each Board
Member along with information for online training and an update of credits earned.
The Board was informed of the upcoming MACRS June Conference in Hyannis. June 4 -5 is the
Trustees Educational Seminar and June 5 -8 is the annual conference.
The discussion continued on the "once a member" issue. Rob asked that Rich Greco in
Arlington be asked how he tracks members who fall below membership criteria.
Keith Wosneski and Harry Gakidia from Acadian presented the annual update on the Acadian
International All -Cap Fund whose strategy is non U.S. All Cap Equity. The fund begun in
January 2005 and Lexington invested in August 2005. As of December 31, Lexington's market
value was $6,178,121. The presentation included an organizational overview, the investment
philosophy and process. The performance returned 5.1% for 4th quarter 2015 and 3.1% for 2015
annual. Discussed were the factors that both help and hurt the portfolio for the 4th quarter and for
the year. The risk measures are updated three times a day and the portfolio is balanced every
eight days.
Zela Astarjian and Julie Lind presented the RhumbLine annual update for the Russell 1000
Pooled Index Fund. Through 1/17/16 the fund declined 8 %. The total market value as of
12/31/15 was $795.2m and Lexington's market value was $12,452,695.
Steve MacLellan presented the Meketa 2015 year in review noting the volatility in the market,
the Federal Reserve interest rate increase, the strengthening of the U.S. dollar, the slowing of
China's economy and the decline in oil prices all which contributed to Steve's comment that it
was a "tough year to explain."
With all major asset classes declining in December, real estate and private equity returned 10.1%
and 7.6% through September. Corporate earnings fell but less than estimated. It is a challenging
investment environment that Meketa sees continuing. The key issues for 2016 are China's
economy, Federal Reserve interest rate policy, corporate earnings, oil and commodity prices,
potential for Emerging Market volatility and Middle East tensions.
The market value of the portfolio as of 12/31/15 was $137.5rnm, a decrease of $1mm. The one
year performance for Lexington was .7% and for almost all asset classes outperformed the
benchmarks with Contrafund having the best return of 6.5 %.
At the request of the Board, Meketa published an RFP for open -end core and core -plus real
estate funds with a closing date of January 28, 2016. A bidders report will be provided at the
February meeting.
Fidelity and Wellington representatives will be attending the February 25 meeting.
A motion was made, seconded and approved unanimously to adjourn the meeting at 10:15.
The next meeting will be held February 25, 2016, 8:00 AM at Cary Memorial Library.
Robert Cunha, Chairman Alan Fields, Appointed Member
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member