HomeMy WebLinkAbout2024-06-27-RB-min Minutes of the June 27, 2024 Retirement Board meeting:
Present: Robert Cunha,Joseph Foley, Carolyn Kosnoff,Alan Fields, Frederick Weiss, Michelle Malone &
James 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 062824 Warrant and the June payroll. The May minutes were reviewed and
approved, as well as the cashbooks.
Robert Cunha reviewed the June agenda with all Board members and staff in attendance.
The Board members reviewed the draft report for the FY'24 GASB created by Stone Consulting.
The Annual Benefit Verification Form process is starting to wind down. Waiting on roughly 60 forms to
be returned. Those members have received second notices.
Board members and staff had a discussion regarding Cyber Security issues and procedures. Carolyn
spoke about the Town of Arlington cyberattack. Arlington was hacked by a sophisticated crew working
overseas. They were able to infiltrate the school building authority email system that pays bills to
contractors working on the construction project. After getting into the email system,the attackers were
able to transfer payments in the amount of$445,000.00 to themselves. Arlington has only been able to
recoup$3,500.00 of that money still April. The Lexington Board and staff all spoke of stories they have
heard, and we discussed how we need to be vigilant to emails before opening or replying to the sender.
Jim Condon went over the 91A Termination process with the Board. Our office currently has five (5)
retirees that are non-compliant with PERAC. These individuals have yet to submit their statements of
earnings for 2023 to PERAC. By law, PERAC informs us to send follow up letters to the members,which
has been done via Certified Mail. Jim will check on the PROSPER site to see if any of these members
have completed the required paperwork that PERAC originally mailed out to their homes.
Stephen MacLellan presented the Meketa update at 8:50 am. The portfolio balance as of May 31, 2024
was$238,940,458.00, up $10.2m from the previous month. Currently,the portfolio is up 8.2 YTD. Steve
mentioned the China markets having gone positive, contributing to recent success with our balance.
Acadian and Wellington have performed well in recent weeks. Fidelity Contrafund continues to be a
strong driver in the portfolio. They posted a 6.9% last month, and are up 20.3%year to date.
Wellington and Acadian also doing well as of late. Steve cautioned the market could slow heading into
the summer, and an election looming. His presentation was brief and he wrapped up his presentation at
9:00 am.
Melissa Moesman and Mike Hickey presented the Fidelity Contrafund review at 9:02 am. Currently,
Fidelity is up 20.3 YTD and 42.0%over the past one (1) year. Fidelity operates a diverse domestic equity
fund with a large growth base. They seek out firms poised for durable multiyear earnings growth that
contain superior business models. The main emphasis is on firms with high returns on capital and solid
free cash flow generation. Fidelity continues are strong in research and continue to upgrade the
portfolio as opportunity opens. Information Technology and Communication services are the two
highest sector weights in the portfolio. Meta and Berkshire Hathaway are some of the top holdings.
Mike and Melissa wrapped up the review at 9:25 am.
Robert Cunha made a motion at 9:26 am to adjourn the meeting,which was seconded by Joseph Foley
and unanimously approved by Fred Weiss, Carolyn Kosnoff, and Alan Fields.
The next Retirement Board meeting will be held on July 18, 2024 at 8:30 am via Zoom.
Paul Ahrens from White Oak will present their review at 9:00 am.
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member