HomeMy WebLinkAbout2024-08-29-RB-min Minutes of the August 29, 2024 Retirement Board meeting:
Present: Robert Cunha,Joseph Foley,Alan Fields, Frederick 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 083024 Warrant and the August payroll. The July minutes were reviewed and
approved, as well as the June cashbooks.
Robert Cunha reviewed the July agenda with all Board members and staff in attendance.
It was noted we received two (2) distributions in July. A Fidelity distribution was received on July 19,
2024 for$24,782.62 and one from Angelo Gordon on July 26, 2024 for$311,778.00. We had a capital
call from Neuberger Berman on August 1, 2024 in the amount of$1,050,000.00
Jim Condon presented the 91(A)Termination update from PERAC. We had three employees on the
termination list, however,two (2) did submit the required paperwork to PERAC for review. Mr.Jason
Morey was the retiree who failed to comply in the allotted time frame and the Retirement Board was
ordered to suspend his pension by the PERAC Administration. Mr. Morey did not receive a pension
payment for August and was billed for his benefits from the HR department in Lexington. On August 26,
2024, Mr. Morey contacted our office to let us know he has been working with PERAC on a resolution
and paperwork required. We will continue to suspend his pension until this is cleared up at PERAC.
The Board had a conversation regarding our September Board meeting. We will hold it on Wednesday,
September 25, 2024 at 8:30 am on Zoom. There is a possible chance of sitting in on two AD applications
with local lawyers for a hearing on Thursday, September 26, 2024 to review their claims.
Will Hickey and Thomas Ansen-Wilson presented the Driehaus Capital review at 8:58 am. Will gave an
organizational update and mentioned some key developments impacting Emerging Markets of late.
Those include global inflation, US election, downward move in the US Dollar, and value reform programs
in Korea. He then turned it over to Thomas to review the portfolio. Thomas spoke briefly on his
thoughts on the upcoming US election. He gave his plus/negative thoughts on how EM would shake out
based on Trump or Harris winning the presidency. One sticking point was on how tariffs with other
countries would play out. Driehaus feels there would be less impact if a democrat remains in office.
Tom moved onto performance. Driehaus EM market growth as of June 30, 2024 is 4.90%QTD and
12.24%YTD. Over a 1 year performance, they are 17.65%and continue to have a strong 2024. China
has been a weak link in the portfolio. The Chinese market cannot be trusted, despite being priced ok in
certain areas. Industrial and certain products are accessible to obtain. He warned it is more of a trade,
not buy& hold type market now. Lastly, he spoke of Artificial Intelligence (AI) and how it is on the
upswing. Korea and Taiwan are the major players in this market. It is a key component for Emerging
Markets worldwide in dealing with the supply chain of semi-conductor manufacturing. He wrapped up
his presentation at 9:25 am.
Henry Jaung presented the Meketa update at 9:30 am. The portfolio balance as of July 31, 2024 was
$247,207,809.00, up $6.3m from the previous month. US domestic equities trailed a bit in July,yet
remain up 17.3%YTD and 23.7 over the 1 year. Despite the small increase in July, equity market
volatility remains subdued as inflation tracks lower and the economy remains resilient. US interest rates
have not changed, however,there are signs of 3-4 cuts coming before the end of 2024.
Henry spoke of the performance that Fidelity Contrafund has produced in recent years. It has produced
a 32.3% high in the past 1 year, and 23.8%YTD for the portfolio. This US equity fund has done
tremendous overall. Now,the A.I. craze is been beneficial with the boost in performance. Other solid
domestic performers include Rhumbl-ine Russell 1000 Index and even KAR. KAR is just over 7.3%YTD,
but has an 11.9%over the 1 year. On the International side of equities,Acadian and Driehaus are
leading the way, both over 11%YTD. Henry then concluded the presentation by mentioning Gold as a
hedge for the portfolio. Board members seemed interested and Meketa will report back in September
with some researched data. His presentation wrapped up at 9:55 am.
Robert Cunha made a motion to adjourn the meeting at 9:57 am,which was seconded by Fred Weiss,
and unanimously approved by Alan Fields, Carolyn Kosnoff, and Joseph Foley.
The next Retirement Board meeting will be held on Wednesday, September 25, 2024 at 8:30 am via
Zoom.
There will not be a review for any investment firms at the September Board Meeting.
Future Board Dates: 10/24/24, 11/21/24& 12/19/24
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member