HomeMy WebLinkAbout2024-11-21-RB-min Minutes of the November 21, 2024 Retirement Board meeting:
Present: Robert Cunha,Joseph Foley, Frederick Weiss, Carolyn Kosnoff, Michelle Malone and Jim
Condon
Absent: Alan Fields
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, 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 112924 Warrant and the November payroll. The October minutes were
reviewed and approved, as well as the September cashbooks.
Robert Cunha reviewed the November agenda with all Board members and staff in attendance.
It was noted there were two (2) distributions from Golub Capital. Both distributions were received on
October 25, 2024; one for$92,355.00 from fund 14, the other was fund 2 for$126,324.00. A Matthews
Asia redemption was received on 10/29/24 for$2.5m. We should receive the final other half on their
next pay cycle to close out. Lastly, a distribution from Fidelity Contrafund was received on 10/30/24 in
the amount of$26,388.29.
PERAC continues to work on the Jason Morey 91A overearnings update for the Board.
Stephen MacLellan presented the Meketa update at 8:40 am. He give a brief review of the 3rd Qtr. 2024.
Stock and Bond markets rallied through some heightened volatility thru the Presidential election.
Indications of future interest rate cuts was the driving force behind its success. Also,the Federal
Reserve had a 50 basis point interest cut in September even with the US economy quite healthy. The 3rd
Qtr. also saw US Equities (Russell 3000) rise 6.2%with small and value cap stocks outperforming large
cap stocks. China's policy makers managed to roll out a stimulus package to support equities and
funding rates,which led to the MSCI China equity index to produce a positive 23.5% in the quarter.
Stephen then gave the performance update as of October 31, 2024. The portfolio balance as of
10/31/24 was$257,394,026.00, up $1.2m from the previous month. It is up 15.0%YTD and 26.4%over
the 1 year. Domestic Equities was down for the month, posting a -0.8%. It remains our dominate sector
in the portfolio. Fixed income assets were flat for October,yet up 5.9%YTD and 7.9%over the 1 year.
The International Equity side had a bad month. Most firms posting a negative 3.9% in October. Global
Equity was down -3.6%for the same period. Our cash holding is at$13.8m. Deployment of funds to
Neuberger/Berman strategy will commence on December 10, 2024. Stephen mentioned that our
presentation deck provides a layout of our Asset Class Performance for QTD and YTD for review. He
wrapped up the presentation at 8:58 am.
David Gurtz presented the PRIT review to the Board at 9:00 am. He gave a brief overview of the
organizational chart and spoke of some promotions and new hires. Currently,their AUM has reached an
all-time high of$110.5b. 41.1%of those funds are allocated to Global Equities. David mentioned Core
RE is down 4.87%over the past one year,while Hedge funds are up 14.96%. Within the RE sector, PRIT
has$10b (9.1%of PRIT Fund), allocated to RE. Directly owned Core properties make up the majority of
the RE portfolio (85.2%). Non-Core RE investments make up approximately 6%. He mentioned that for
a while now, RE transaction activity is very low. They have made 1 purchase and sold only 2. Hedge
Funds are in 3 buckets, Directional, Stable, and Hedge Fund of Funds. They allocate$8.5b,which 95%
are for Directional and Stable. David then spoke briefly on risk-adjusted returns and market beta before
wrapping up his presentation at 9:27 am.
Robert Cunha made a motion to adjourn the meeting at 9:28 am,which was seconded by Frederick
Weiss, and unanimously approved by Joseph Foley and Carolyn Kosnoff.
The next Retirement Board meeting will be held on Thursday, December 19, 2024 at 8:30 am via Zoom.
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member