HomeMy WebLinkAbout2017-05-25-RB-min Minutes of the May 25, 2017 Retirement Board Meeting
Present: Bob Cunha,Joseph Foley, Frederick Weiss, Alan Fields, Carolyn Kosnoff, Marguerite Oliva and
Jim Condon
NEW MEMBERS: (2) Christine Dean, Community Center Dir.; Chelsey Burnham, Dispatcher
DEATHS: Ruth Rosa, School Secretary, 5/15/17
RETIREMENTS: George-Arthur Robinson, Firefighter, 6/15/17; Anne Kimball, IA, 6/23/17; Sheila Levitan,
Librarian, 8/6/17
The Board accepted the 053117 Warrant and the May payroll. The April minutes were reviewed and
approved, as well as the cashbooks for March 2017.
The Board discussed and voted on the Accidental Disability application for Vivian Marcano. A motion
was made by Bob to deny the ADR, seconded by Joe and voted in agreement by Carolyn, Fred, and Alan.
The decision was made in part to the fact that Ms. Marcano turned down a position within the school
department that would accommodate her.
The matter of posting the Board meeting minutes onto the town website was addressed. The Board is
willing to move forward with the posting but follow the recommendations made by Attorney Michael
Sacco. Bob suggested to post the minutes of the meeting, financial performance figures, and managers
of the funds. Steve advised us that Meketa can trim and edit monthly report for our posting. A motion
was made by Bob, and seconded. All in favor, none denied to post monthly Board minutes.
Maria Frey had requested two months of additional creditable service toward her account. She was
employed as a tutor in the Lexington School System from September 1997 to June 1999. During that
time period, Ms. Frey was given credit for July and August 1998 because she was returning back to work
in Sept. 1998. However, she left employment in June 1999 and was not returning for the school year in
Sept. 1999. Therefore, she is not eligible to receive credit for two (2) months for the summer of 1999.
Bob made a motion to deny, seconded by Joe, and voted in agreement by Carolyn,Alan and Fred.
Robert Cunha was unopposed in his election bid and will begin his eleventh term as a member of the
Lexington Retirement Board on July 1, 2017. Congratulations and thank you for your dedication and
professionalism to the Board over the years.
There was a $300,000.00 wire transfer to Vanguard by the Town on 4/27/17.
Henry Jaung and Steve McLellan presented the Meketa update. The portfolio increased from $152.1m
on 3/31/17 to $154.9m on 4/30/17. It is currently up 7.5%for this year and 13.8%over the past twelve
months.
Kayne Anderson Rudnick performance numbers should appear on the May 31" Meketa update.
As of April 301h, Monroe, Golub, and White Oak are holding steady and performing as expected. William
Blair posted a positive 3.1%, yet is still lagging behind our other clients in the portfolio.
The Hartford Capitol review was presented by Brian Kraus. He gave a brief review of their objective and
strategy in the Capital Appreciation fund. Most notable item was the pending retirement of Saul Pannell
by the end of this year, and how his holdings would be distributed to other risk managers. Tom Simon
will acquire these holdings and rely on his investment team to look into companies with revenue growth
and attractive business models to create a balanced portfolio. Brian also mentioned it will be Tom's goal
to lower the tracking risk. With the markets up, the tracking error Beta is around 1.1 and should come
down. The review concluded.
Henry and Steve opened up the discussion with the Board on the Hartford presentation. Henry felt the
Hartford Fund could be a high cost index fund going forward. This was based on Saul retiring and a new
style Tom Simon brings to the fund. It will be a tough transition for Tom's entry and Saul's departure
over the next several months. Henry suggested moving the Hartford Fund into RhumbLine and
International Growth.
Alan felt we should move the entire Hartford holding into Acadian International. This would give us a
balanced weight financially in both the US and International markets. After a brief discussion amongst
colleagues,Alan made a motion to transfer Hartford into Acadian. $5m will be transferred to Acadian
International Fund and the balance to cash. The motion was seconded by Fred and voted in agreement
by Bob,Joe and Carolyn.
The Fossil Fuel holding has dropped from 4.4%to 4.2%. The drop came from changes in fixed income
and asset class.
A motion was made, seconded, and unanimously approved to adjourn the meeting at 9:30.
The next Board Meeting will be Tuesday June 27th 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