HomeMy WebLinkAbout2025-09-25-RB-min Minutes from the September 25,2025 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 and in person. The Town
Clerks Office posted the meeting,which included the information for any interested party to join the call.
Robert Cunha,Joseph Foley,Carolyn Kosnoff,, Frederick Weiss,lames Condon and Michelle Malone were
present. Alan Fields was unable to attend. Robert Cunha called the meeting to order at 8:30 am.
The Board accepted the 093025 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 of$59,149.00 from Neuberger Berman was received on 08/28/2025.
A motion was made by Robert Cunha to accept the liability of service request from the State
Retirement Board for John Ciszek. This motion was accepted by Joseph Foley and unanimously
approved by Carolyn Kosnoff and Frederick Weiss. The total accepted liability is for nine (9)
months.
The Board engaged in a Cost of Living Adjustment discussion. Carolyn Kosnoff reviewed
some findings from the two requested actuarial studies provided by Stone Consulting. Two
scenarios ($15k and $16K)were placed before the Board for discussion. In both scenarios,
funding progress for the retirement system would be fully funded in FY 2030. For both
scenarios,Asset smoothing was factored. The FY 2031 appropriation will be determined by
the 2029 valuations, so any minor losses between now and then will likely be erased by
continued recognition of gains for CY 23 and CY 24. The Board was not comfortable with
less breathing room. It would take less negative experience to push the system out a year
in the funding schedule. These two (2) scenarios will be carefully watched in the next
valuation. Her goal remains to be fully funded in 2030. If we increase COLA benefits, it will
push the funding schedule out further and raise concerns of lowering the liability. Joseph
feels raising the COLA base to $ 16k/$17k would only push us out 1 (one) additional year.
Fred Weiss felt we remain on our current schedule. He has concerns going forward such as
the new high school project coming and the financial world as a whole. Both are two (2)
issues that could affect the town finances. Robert Cunha had the similar feeling as Fred.
He stated with just four(4)years left to be fully funded, we should stay the course. Liability
is a big issue on this topic. Bob will continue to review the findings from Stone Consulting.
Bob Cunha made a motion to accept the Funding Schedule at$15k,which was seconded by
Frederick Weiss,and unanimously approved by Carolyn Kosnoff and Joseph Foley.
Steve MacLellan presented the Meketa update at 8:50 am. He mentioned the Wellington
Opportunistic liquidation trade ticket is in process. The funds will be split out to Acadian (40%),
Rhumbline(25%), Driehaus(15%),and Cash (20%).This should be completed on October 1,2025.
Meketa will redeploy the funds at that point. We had a decent month with market performance. US
stocks delivered a nice rally in August,with the Russell 3000 returning 2.3%. Value and small cap
led the way. Emerging market equities returned 1.3% mostly from Chinese stocks and a 90 day
pause on tariffs.
The portfolio balance as of August 31,2025 is$285,380,676.00, up$2.6m from last month.The
portfolio is up 11.6%YTD. Domestic equities were somewhat flat,while Global Tactical Asset
Allocation Assets were up 3.8%. International equities came in at 2.8%. Recent RFP's sent out by
Meketa will be discussed at the October meeting. Steve paused his presentation at 9:00 am.
Jessica Grewal and Chad Cleaver presented the Driehaus update at 9:01 am. Jessica gave a brief
update on the firm,then Chad began the firm update. The portfolio has outperformed expectations
five of the last six years. Emerging Markets returns are coming back into play as of late. China
remains underweight in the overall portfolio due to policy maker changes in the way allocations are
handled. The past few months have been tough, but it is starting to turn around as of late.
Innovations in the A.I.world in China are helping and becoming on parwith the United States.
Driehaus stated companies such as the Cloud and Ali Baba are overweight in the portfolio,while
Tencent is the top active weight holding. Chad believes there is a healthy outlook going forward in
the Emerging Market sector,with earnings and growth on the rise. He wrapped up his presentation
at 9:20 am.
Stephanie Luh presented the Kayne Anderson Rudnick at 9:21 am. There are no changes in the
teams at KAR. They currently hold $65.813 in Assets Under Management. Over the past 12 months,
KAR has endured many swings in the market. They struggled in the 1'quarter this year with all the
talk of tariffs,which led to losses in the Equity markets for them. Then, as the tariff talk shifted and
became delayed, it turned into a buying frenzy for KAR. They were making deals with strong quality
businesses. She did mention that no activity involved the Utilities sector. That is a field KAR has
little interest in involvement. Stephanie concluded the presentation at 9:55 am.
Steve MacLellan returned and closed out final questions of the Meketa update 10:00 am.
Robert Cunha made a motion to adjourn the meeting at 10:03 am,which was seconded by Joseph
Foley,and unanimously approved by Carolyn Kosnoff and Fred Weiss.
The next Retirement Board meetingwill be held on Thursday, October 23,2025 via Zoom.
White Oak Summit and Neuberger Berman will present.
Future Board meetings:Thursday, November 20t"&Thursday, December 18t"
ABSENT
Robert Cunha, Chairman Alan Fields,Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss,Appointed Member