HomeMy WebLinkAbout2023-07-27-RB-minMinutes of the July 27, 2023 Retirement Board meeting:
Present: Robert Cunha, Joseph Foley, Alan Fields, Fred Weiss, Carolyn Kosnoff, Michelle Malone and Jim
Condon
Absent: None
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, Carolyn Kosnoff, James Condon and Michelle Malone
were present for this meeting. Robert Cunha called the meeting to order at 8:30 am.
The Board accepted the 073123 Warrant and the July payroll. The June minutes were reviewed and
approved. The financials were not available at the time of meeting.
Robert Cunha reviewed the July agenda will all Board members and staff in attendance.
It was noted we received a distribution on 6/26/23 from White Oak in the amount of $17,326.00
The Benefit Verification program is wrapping up. We have received 448 forms back to the office. Jim
will be sending out a final notice to the remaining 18 retirees that it is overdue.
Michelle informed the Board the Retirement Offices have been painted and the new furniture is
installed. Just a few items left on the list for completion. Thank you from the staff to allow us to move
forward with this project.
James Weston has completed his repayments to the Board in full. His monthly pension has been
restored.
All Board members were reminded of their duty to complete PERAC Board training in a timely manner.
Henry Juang and Stephen MacLellan presented the Meketa update at 8:42 am. The portfolio balance as
of June 31, 2023 was $207,256,933.00, up $7.3m. That puts the portfolio up 9.5% YTD and 4.6% QTD.
Steve mentioned the markets are starting to recover and should hold steady. One factor was the U.S.
GDP came in higher than expected, up 2.4%. Also, the thoughts of a recession are starting to decrease.
The recent interest rate hike will probably remain in place for the foreseeable future.
Henry mentioned the portfolio is in good positioning as this time. We remain overweight in US Equities,
but it is working fine for the portfolio. He mentioned exploring adding to RE or Hedge funds in the
future. It was just a suggestion. All Domestic Equity classes are doing well 2nd quarter. The
International sector continues to lag, yet up 3.4% YTD. As of today, the searches for investments are on
hold, no RFP’s to be issued anytime soon. Meketa will continue to research funds for Lexington. The
Meketa presentation wrapped up at 9:10 am.
Paul Ahrens and Jon Bianchi presented the White Oak presentation at 9:12 am. Paul gave a brief update
on the firm operates. They specialize in originating and funding non-sponsored loans. White Oak tends
to target borrowers that are insulated from the changing macroeconomic conditions and could
withstand effects from inflation. They try and avoid borrowers that operate in retail, and those with
significant exposure to commodity prices with long term contracts or fixed costs. Jon Bianchi mentioned
some items that have held White Oak back with returning funds to clients as of late. Most notably was
they were involved with oil and gas companies, which is a sector they should not be heavily involved
with in first place. Also, they were financing for partners when corporate mergers were not going
through. Jon and Paul mentioned the rates of inflation and borrower’s struggling to make payments are
part of the issue, as well as lingering effects from the Global Pandemic. They spoke of returns on
capital. Returns are slower than usual right now on client exit strategies. It is expected to be better
over the next few quarters. White Oak’s goal is to return 10-15% by years end, then 40-50% in 2024.
They wrapped up the presentation at 9:45 am.
Robert Cunha made a motion to adjourn the meeting at 9:47 am, which was seconded by Fred Weiss,
and unanimously approved by Carolyn Kosnoff, Alan Fields, and Joseph Foley.
The next Retirement Board meeting will be held on Thursday, August 24, 2023 at 8:30 am via Zoom.
Future Board meeting dates will be September 28th and October 19th.
_____ __________________
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member