HomeMy WebLinkAbout2017-07-27-RB-min Minutes of the July 27, 2017 Retirement Board Meeting
Present: Bob Cunha, Alan Fields, Frederick Weiss, Carolyn Kosnoff, Marguerite Oliva and Jim Condon
Absent: Joseph Foley
NEW MEMBERS: (6) Laura Sargent, Bailey Carr, Lauren Twomey SSI's; Vincent LeRow,AV Technician;
Rajon Hudson, Mgmt. intern; Monica Visco, HR Director
DEATHS: Charles Withrow, Police Captain, 7/23/17
RETIREMENTS: Susan Greco,Aide, 7/31/17;Thomas Finnegan, DPW Mechanic, 8/4/17
The Board reviewed Louis Dimambro's accidental disability case for retirement purposes. The medical
panel, consisting of three (3) doctors, were in agreement that Mr. Dimambro is incapable of returning to
the workforce with the Town of Lexington. A motion was made by Bob to approve, seconded by Alan,
and voted in agreement by Fred. Joe and Carolyn were not present for the vote.
Maggie briefed the Board regarding the non-compliance of three ADR retirees whom have yet to
complete 91A filings with PERAC. These members have been advised to complete the necessary
paperwork.
Cynthia Kelly has requested to buyback creditable service from the Middlesex County Retirement
System and have that time applied to her retirement account in Lexington. Middlesex County
Retirement has agreed to accept liability for the buyback. A motion was made by Bob to approve,
seconded by Fred, and voted in agreement by Alan.
The Board was advised on a few matters regarding retiree James Catalano. Mr. Catalano has yet to
return his Benefit Verification Affidavit. We have been in contact with a relative at the home and she
states he will take care of it. Jim sent him another one on July 28th. Also, Mr. Catalano has yet to cash
his last five (5) pension checks. Our office is working to help resolve this matter with him and will
update the Board on these matters in August.
A motion was made by Bob to allow our lawyer, Michael Sacco, access to the PROSPER website via
PERAC. This motion was seconded by Alan, and agreed upon by Fred and Carolyn. It is now a matter of
PERAC allowing such access. Brockton Retirement System is currently seeking the same access.
Steve McLellan and Henry Jaung presented the Meketa update. The portfolio continues to perform well.
It increased from 156.1m on 5/31/17 to 156.6m as of 6/30/17. The Hartford Cap. Appreciation fund is
now posting 0.0 market value and 0.0 percent in system. KAR is now posting in at 4%of the system
allocation.
YTD earnings are up 10.2%and holding strong. The 1 year earnings are at 15%. Strong returns without
private equity and avoiding liquidity are part of the driving point to our gains. The Fidelity Contrafund
has been doing extremely well over the past twelve months. Consumer companies, such as Amazon,
have fueled the great gains as of late. Our move from Domestic to International Equity Assets appears
to be paying off. Matthews Tiger Fund is up 20.3%for the year. We will know more about its
performance in the next month or two.
Susan Grivas and Dave Dali presented the Matthews Asia performance update. This asset management
firm has a singular focus on Asia. Presently, the assets under management total 30.2b, which is up 2.Ob
for the YTD. A contributing factor to the YTD success is the rise of inflation in China. Also, Matthews
focuses on the Domestic demand within Asia, not including materials and energy so much. David went
into detail about the Emerging Markets in Asia and how attractive they have become as of late. He
believes in the Four Pillar theory on when to invest in Emerging Markets. Stable US Growth/Inflation,
Rising Commodities, Fair Value Currencies, and Fair Value Credit Spreads. In the last five (5)years,these
Pillars are favoring the Emerging Markets as projected. Growth in the markets will hold around 2% over
next couple of years. China will continue to grow with service sectors getting stronger. For instance, it
was noted farmers in the urban areas are being pushed into developing downtown areas for better
wages and work opportunities. This push is also driving up sales of consumer staples for these workers
as they set up residency in the downtown districts. Lastly, Dave briefed us that the Matthews Fund is up
20%as of June 2017 posting. Attributes Consumer Staples as a primary force of success at this time.
Bladen Burns from FMI Large Cap will present at the August 24, 2017 Board Meeting. White Oak
Summit will attend our September 28, 2017 Board Meeting.
A motion was made, seconded, and unanimously approved to adjourn the meeting at 9:35 am.
The next Board Meeting will be held Thursday August 24th at 8:00 AM at Cary Memorial Library.
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member