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HomeMy WebLinkAbout2017-01-26-RB-minMinutes of the January 26, 2017 Retirement Board Meeting. Present: Bob Cunha, Carolyn Kosnoff, Fred Weiss, Alan Fields, Marguerite Oliva, and Jim Condon Absent: Joe Foley Bob Cuhna called the meeting to order at 8:00 AM. NEW MEMBERS: (8) Amber Stickles, William McMahon, Meghan Guardino, S.S.I's; Andrea DiLando, Dept. Assistant; Gemmesa Mercado -Johnson, Exec.Admin.Assistant, Carolyn Kosnoff, Assistant Town Manager for Finance; Amy Diaz, Enrollment Specialist; Kim Katzenback, Municipal Assistant DEATHS: Alice Stringos, Clerk, 12/30/16 RETIREMENTS: Linda Carroll, Reference Librarian, 3/20/17; Karen Simmons, Director of Recreation, 2/11/17; Candy McLaughlin, Project Manager, 1/20/17; Linda Crew Vine, Deputy Town Manager, 3/3/17 The Board accepted the 123116 Warrant and the December payroll. The November 2016 minutes were reviewed and approved as well as the cashbooks for October 2016. $1,000,000.00 was transferred to the PRIT RE Fund on January 1, 2017. The Board briefly discussed the AD Case for Robert Magarian. It has been noted that Mr. Magarian had turned down a job offer with light duties prior to retirement. The Board chose to have PERAC set up a medical panel review case and will wait for the report. PERAC letter was received with authorization to approve Janet Waitkus, surviving spouse of Robert, to receive the pension allowance of $1,000.00 per month / $12,000.00 per year. The Board accepted the PERAC letter to continue s.101 benefits to Ms. Waitkus. Henry gave an update of the fund. He mentioned we should focus a bit more on small/mid cap funds, citing the smaller companies are doing well since the presidential election in part due to corporate tax cuts. Also, Henry recommended we should look into private equity. He feels U.S. Stocks will pay a higher value off equity. He briefly spoke of Hartford and Contrafund poor returns for 2016, as well as Matthews continued struggle for most of 2016. However, Contrafund is up significantly in January2017. Wellington performed as expected in 2016. Fossil Fuels remain at just under 5%. Jeff Kusmierz and Sarah Duncan from Rhumbline were present to give the Annual update of the fund. The market value of portfolio was $16,871,580.00; up 11.99% for the year 2016. It is currently up 6.9% in Jan. 2017 due to energy and utility stocks up high. Kayne Anderson Rudnick presentation was led by Craig Stone and Aaron Reed. An overview was given on the firm and their strategies. Primarily they specialize in small and mid -cap equity. They continue to invest mainly on high-quality businesses. Client base is right around 30 companies. Focusing on the 30 has led this firm to a 20.9% return on equity over the past 5 years. With the exception of 2002 & 2008, Kayne Anderson has posted gross profits over the past 25 years. The Boston Company presentation was given by Carl O'Connell. Basic overview on how they thrive on stock research and capitol allocation via major research before they make purchases. They have been working in the small / mid cap equity for over 20 years now. They still utilize a 20 year old investment process that delivers relative returns over the long term. Fred Weiss and Alan Fields began a discussion with the Board on which company we should select. The overall performance of both vary at different times based on market. Both seem to deal with situations well during critical market times. Kayne Anderson Rudnick appears to have a solid foundation in the equity market vs. Boston Company. A motion is made by Alan to invest with Kayne Anderson Rudnick, seconded by Fred and voted unanimously. The funding will be discussed at a future Board meeting, including how much and which investment to use for the funding. A motion was made, seconded and approved unanimously to adjourn the meeting at 10:15 AM. The next Board meeting will be on February 23, 2017 in Lexington Town Hall / Parker Room at 8:00 am. Robert Cunha, Chairman Carolyn Kosnoff, Ex Officio Member Frederick Weiss, Appointed Member Alan Fields, Appointed Member Absent Joseph Foley, Elected Member