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HomeMy WebLinkAbout2017-03-27-RB-minMinutes of the March 27, 2017 Retirement Board Meeting Present: Bob Cunha, Joseph Foley, Carolyn Kosnoff, Frederick Weiss, Marguerite Oliva and Jim Condon; Alan Fields joined the meeting remotely Bob Cunha called the meeting to order at 8:00 AM. NEW MEMBERS: (7) Jonathan Kuffert, Special Teaching Asst; Margo Greenberg, Margaret Keitouny, Kimberley Bradley; I.A's; Erik Guillette, Justin Mercier, Firefighters; Ryan Shea, Custodian DEATHS: Joseph Sveistys, Custodian, 3/15/17 RETIREMENTS: Gayle Ham, SSP, 3/10/17; David Welch, Custodian, 4/7/17 The Board accepted the 033117 Warrant and the March payroll. The February minutes were reviewed and approved as well as the cashbooks for January 2017. The Board discussed the two applications for accidental disability retirement It was decided to forward the request to PERAC to convene medical panels for both. Chairman Bob Cunha submitted his nomination papers for the Board election. Final day to submit papers is May 10, 2017. There have been no other requests. There is a White Oak distribution of $35,771 and a call for $103,526. The Board, after a discussion, accepted the makeup request from Lisa Maguire for her part-time employment in the Town Clerk's office and a buyback request to redeposit withdrawn funds from Needham for Laura Crowe Schroeder. Needham will accept liability for Ms. Schroeder's service. Blair and Loomis will be invited to attend the April 27th meeting. PERAC approval was received for investing with Kayne Anderson Rudnick. $6 mm will be transferred from Hartford. Steve McClellan will contact KAR for contact and wiring instructions. Acadian International All -Cap Fund reps Keith Wosneski and Kurt Livermore presented the annual report. The market value for Lexington as of February 28 was $16,121,202. Acadian tends to invest with more medium and medium/small stocks. 40% of the holdings are in Europe. Overweight in Emerging Markets and Canada, underweighted in Japan and UK. Over weighted in energy, software and services, materials and consumer services; underweight in banks, insurance and telecom services. As interest rates increase banks will become more attractive. The annualized returns for 1, 3 and 5 years out performed the benchmark. Brexit and the coup in Turkey did not have much impact Risk management measures are in place. The Fidelity Contrafund review was presented by Mike Hickey and Ed Schollmeyer. Lexington's market value is $19.2m and is the largest asset in the LRS portfolio. Contrafund has produced an average annual return of 12.65% compared to 10% for the S&P 500 Index. It is a diversified domestic equity fund with a large growth bias. The research identifies the "best of breed" and there is continuous upgrading. Of the ideas that are discussed, 10% are used and result in 350 stocks. There is an overweight in information technology, consumer discretionary and financials and an underweight in energy and consumer staples. Currently 6.5% is held in non U.S. exposure. The Board questioned if Will Danoff has any plans to retire but were assured that he does not. He has been with Fidelity since 1986 and managing Contrafund since 1990. Henry Jaung and Steve McLellan presented the Meketa update. The portfolio increased from $146.8m on 1/31/17 to $149.6m on 2/28/17. There is 36% in domestic equity and 21% in international developed equity. Alan began a discussion of possibly moving funds from domestic equity. The discussion included possibly moving the funds to cash short term and waiting for valuation to decrease or to move it to non U.S. equity and give it to Wellington Opportunistic and allow them shift the money. Fred requested Steve report back at the next meeting of how the portfolio would be affected. The discussion will continue at the April meeting. The Board was reminded of the PERAC PROSPER training and of the Board member educational training. Next Board meeting will be on April 27, 2017 at 8:00 am. Fossil Fuel Company exposure was 4.4% to close out 2016. That represented 117 total securities invested in fossil fuels, excluding the overlapping securities. A motion was made, seconded and unanimously approved to adjourn the meeting at 10:25. The next Board meeting will be on Monday March 27, 2017 at 8:00 AM in Cary Memorial Library. Robert Cunha, Chairman Alan Fields, Appointed Member Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member Frederick Weiss, Appointed Member