HomeMy WebLinkAbout2024-07-18-RB-min Minutes of the July 18, 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 073124 Warrant and the July payroll. The June minutes were reviewed and
approved, as well as the May cashbooks.
Robert Cunha reviewed the July agenda with all Board members and staff in attendance.
The discussion to terminate three (3) pensions due to failure to comply with PERAC was the first item of
business. James Condon informed the Board that three retirees have yet to submit the statements of
earnings for 2023 to the PERAC office. PERAC would like us to terminate the three pensions until these
individuals comply. Robert Cunha recommended the Retirement Board send a letter to each via
Certified Mail that the July 31, 2024 pension payment would be the last until PERAC provides us the
approval to reinstate. These letters will be mailed out on July 19, 2024.
Robert Cunha spoke briefly regarding the Authorized Signatories policy going forward with certain
documents. The Board would like 3 people to have access to sign documents as needed. Joseph Foley
made a motion to appoint Robert Cunha, Carolyn Kosnoff, and Michelle Malone as the designated
signees. This motion was approved by Alan Fields and Fred Weiss.
Carolyn Kosnoff spoke about the OPEB FY 23'Valuation at 8:45 am. She went over the figures and
where we stand now. The plan is to keep funding it annually as long as possible. With the new LHS
building plan starting to balloon, Carolyn will monitor the funding situation closely. There was talk of
potentially diversifying the plan, but Alan cautioned doing so will not make too much of a difference.
Carolyn will report back to the Board in Sept/Oct will need funding data.
Steve MacLellan presented the Meketa update at 8:52 am. The portfolio balance as of June 20, 2024
was$240,880,596.00, up $1.9m from the prior month. Currently,the portfolio is up 9.5%YTD. Recent
success can be attributed to International equity assets the past QTD. Matthews Asia has fared well
over the past quarter,while Driehaus showed improvement, posting a 3.4% increase last month. On the
Domestic equity, side Fidelity continues to drive the portfolio, posting a 6.5%for the month, and a YTD
total of 25.6%. Rhumbline is doing well also, 14.2%YTD and 3.6%the past month. KAR is running flat as
of late, and is down 5.2%for the quarter. Real Estate assets remain flat. Not much to report, but down
1.9%for the YTD. As of June 30, 2024, approximately 1.9%of the total fund was invested in fossil fuels.
This has been the first update in some time, and it is down from last year. Of the total system invested
in fossil fuel companies,the exposure within equities was 1.7%and the exposure within opportunistic
assets was 0.2%. Steven wrapped up the presentation at 8:57 am.
Paul Aherns and Jon Bianchi presented the White Oak Summit review at 9:00 am. Paul provided a brief
update on the firms operations. They continue to specialize in originating and funding non-sponsored
loans. The focus is on avoiding borrowers that operate in retail, and those with significant exposure to
commodity process with long term contracts or fixed costs. Jon mentioned inflation appears to be
trending downward,yet White Oak is facing challenges due to ineffective market strategies with
minimal new bookings over the past quarter. There net IRR is down to 4% below the target rate they
have set. The goal was 6-7%. White Oak is having some issues with companies paying back original
loans. They hope the stronger labor market will help guide them going forward, but for now,they
mentioned more work needs to be done to satisfy their clients. Jon wrapped up the presentation at
9:15 am.
Robert Cunha made a motion to adjourn the meeting at 9:20 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 Thursday,August 29, 2024 at 8:30 am via Zoom.
Will Hickey from Driehaus Capital will present the review at 9:00 am.
Future Board Dates: 09/26/24, 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