HomeMy WebLinkAbout2024-09-25-RB-min Minutes of the September 25, 2024 Retirement Board meeting:
Present: Robert Cunha,Joseph Foley,Alan Fields, Frederick Weiss, Carolyn Kosnoff, Michelle Malone
and Jim Condon
Absent: None
The Board accepted the 093024 Warrant and the September payroll. The August minutes were
reviewed and approved, as well as the July cashbooks.
Robert Cunha reviewed the September agenda with all Board members and staff in attendance.
It was noted a distribution from Monroe Capital Fund IV was received on 08/22/2024 in the amount of
$87,315.00.
An update on the status of Jason Morey was presented by Jim Condon. He mentioned there has been
no activity reported back to him from PERAC. The PROSPER website still lists Mr. Morey as incomplete
for his Allowable Earnings Determination. It is under review.
The Annual Benefit Verification process is winding down. Jim Condon will be contacting the remaining
few retirees that the form is past due and now subject to pension suspension.
All Board members were reminded that 3rd Quarter 2024 Board Training is available. Webinars are
posted on PERAC's website. Please sign up for one in the quarter.
At 8:37 am, Robert Cunha reminded Board members and staff of our Executive Session will be held on
Thursday, September 26, 2024 at 8:30 am in the Parker Room. This session is to review two disability
claims.
Stephen MacLellan presented the Meketa update at 8:42 am. He began by stating after an early volatile
month, most asset classes posted gains in August. Early on,weak US jobs data caused speculation the
Federal Reserve waited too long to cut interest rates. On top of that,Japan raised rates on the Yen,
which drove the equity market volatility at the start of the month. Fixed income markets posted
positive returns as inflation pressures recede.
Steve gave the performance update of our portfolio as of August 31, 2024. The portfolio balance as of
08/31/24 was$251,185,434.00, up $3.9m from the prior month. YTD the portfolio is up 14.1%, and up
20.5%over one (1)year. The Domestic Equity Assets continues to drive the portfolio, up 20.7%YTD.
Contrafund and RhumbLine continue to have much success this year. Steve noted the Domestic Equity
bucket is up 27.1%over the one (1)year. The Global Equities are doing better now. YTD up 17.7%.
Wellington Enduring Assets and Wellington Opportunistic are both having a nice year. There was no
data posted related to Fixed Income Assets the past month. Real Estate appears to be showing a little
promise over the past QTD.
A question arose from Robert Cunha about where we stand with the Matthews Pacific fund exit strategy
and our next move. Steve has been looking for ways to finalize this process. The exit strategy requires a
Medallion Stamp. After searching, Steve has notified the Board that we could have it done in Andover,
MA with Wilmington Trust. He will be in contact with their office and advise the Board of the next steps.
As of June 20, 2024, approximately 1.9%of the total Fund was invested in fossil fuels. Within this
exposure, roughly 1.9%of the total System is invested in the Carbon Underground 200 Companies.
Meketa conducted some research for the Board regarding Gold holdings. During our August meeting,
they discussed the attributes of investing in gold in the portfolio as a diversifier and inflation hedge. He
spoke of the company First Eagle Gold. This company structures holdings in three ways: physical gold
bullion holdings,gold mining stocks, and gold futures and options. The background for these can be
found in the Meketa presentation deck on page 36. Stephen wrapped up the presentation at 9:25 am.
Robert Cunha made a motion to adjourn the meeting at 9:26 am,which was seconded by Joseph Foley,
and unanimously approved by Carolyn Kosnoff,Alan Fields, and Frederick Weiss.
The next Retirement Board meeting will be held on Thursday, October 24, 2024 at 8:30 via Zoom.
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member