HomeMy WebLinkAbout2025-02-27-RB-min Minutes of the February 27, 2025 Retirement Board meeting:
Present: Robert Cunha,Joseph Foley, Alan Fields, Frederick Weiss, Carolyn Kosnoff(8:45), Michelle
Malone and James Condon
Absent: None
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, Alan Fields, 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 022825 Warrant and the February payroll. The January minutes were reviewed
and approved, as well as the December cashbooks.
Robert Cunha reviewed the February agenda with all Board members and staff in attendance.
It was noted there was a Golub Partners Fund 14 distribution of$129,084.00 on January 29, 2025.
Charlene Akimchuk provided documentation to request a service purchase. She would like to buyback
time from 03/20/15 to 6/30/15. This was part time service that would total one (1) month of creditable
service. Because the service was below the required minimum of weekly hours worked, Robert Cunha
made a motion to deny Ms. Akimchuk's request to purchase the service, which was seconded by Joseph
Foley, and unanimously agreed upon by Carolyn Kosnoff, Fred Weiss, and Alan Fields.
Susie Chin provided documentation to request a service purchase. She is seeking approval to buyback
service time from 11/01/2013 to 10/19/18. This service equates to two (2)years and three (3) months.
Robert Cunha made a motion to approve the buyback request, which was seconded by Joseph Foley,
and unanimously approved by Alan Fields, Carolyn Kosnoff, and Fred Weiss.
Robert Cunha gave a brief update regarding the contract for Michelle Malone.The contract is for three
(3)years and Michelle is satisfied with the Board's terms. Robert Cunha made a motion to approve the
contract, which was seconded by Alan Fields, and unanimously approved by Fred Weiss,Joseph Foley
and Carolyn Kosnoff.
Joseph Foley spoke briefly regarding incremental COLA increases in the future if funding permits. He
feels we should table this discussion until Stone Consulting comes back with their findings in the study
being conducted. Joseph Foley made a motion at 8:45 am to approve the annual COLA for FY 26', which
was seconded by Robert Cunha and unanimously approved by Carolyn Kosnoff, Fred Weiss and Alan
Fields. The COLA base will remain 3%of the first$15,000.00
Michelle Malone briefed the Board on two (2)ADR's from information received from PERAC. Christina
DeMambro had her 3rd doctor appointment cancelled and is waiting on a new date. This will complete
her medical panel of 3 physicians once booked. Stephen Papia is waiting on medical records from one of
his doctors to complete that process. Unfortunately, that particular office has closed down and Mr.
Papia is seeking guidance from PERAC as to how this can get resolved.
Stephen MacLellan presented the Meketa update at 8:50 am. He spoke of the markets improving in
January mainly Equity and Bond classes. The Federal Reserve held policy rates steady in January as
inflation remains above the target level. Most fixed income markets posted positive returns to start off
2025. There is uncertainty related to the Trump Administration's policies and their impact on the
economy, inflation, and Fed policies.
Steve then gave the performance update as of January 31, 2025.The portfolio balance as of 01/31/25
was$262,803,679.00, up $1.4m from December 2024. Both Domestic& International equity asset
classes were up 4% in January. The Domestic equity class is up 28.9%over the 1 year. Global equity
remains stable, up 2% last month. Fidelity Contrafund continues to work well for the portfolio, up 5.4%
in the first month of 2025. Acadian performed well, posting a 6.3% in January. Steve pointed out the
allocation balances as of 12/31/24. US Equity monetary balance is$122,958.176.00. Our closest next
balance comes from Global Equity at$34,061,514.00. He concluded his presentation by informing the
Board our portfolio is in the Top 10 over the 1,3, 5 year spread. Great news. Steve wrapped up his
presentation at 9:00 am.
Julia Snaman and Charles Johnson presented the Acadian update at 9:01 am. She began briefly with a
quick overview of the firm and their investment philosophy. Use of systematic process is their best way
to capture inefficiencies from mispriced market information. Acadian currently holds$117b in AUM.
Lexington is up 7%over the past year in this strategy. Overall, it has been a great year for most clients.
A big driver was the all non-US cap bucket. Charles then went over the portfolio update. Strong year for
US in returns. The only bump was absolute returns of small caps in 2024. The portfolio remains very
diverse. Taiwan and China are overweight, but doing well. The A.I. field and banks are part of the
success. Software and Tech are doing well as of 12/31/24. Reason for nice returns are due to quality
stock selection, growth, and tech exposure. Now that the Presidential election is over, Acadian is
focused on risk controls and how portfolios are exposed. Any Trump tariffs will cause change in the
exposure Acadian wants to monitor. Charles wrapped up his presentation at 9:25 am.
Peter Kenny, Kelsie Fisher, and Annamarie Gonzalez presented the Golub update at 9:27 am. Golub has
$75b in Capital Under Management. They are a Top 3 middle market bookrunner for each of the last 15
years. They have done over$150b in loans originated. Lexington has posted a 10.3% net inception to
date in returns. Yearly, we are right around 10% return. Golub focuses on direct lending to very diverse
companies, software being a primary sector. Mid to Upper size companies are the focus as borrowers.
The lower market borrowers are tricky to deal with, especially new companies getting off the ground.
Kelsie explained about the commitment to software and tech industries. Roughly$80b. She went on to
speak of Financial Services, which has$47B committed. Over the next 10 months, Golub sees lending
will rise w/ private equity funds. Downfall will be credit stress flowing through the markets. They will
continue to be vigilant with research throughout market trends in 2025. Peter wrapped up the
presentation at 9:55 am.
At this point, Alan Fields had to leave the meeting at 9:55 am.
Steve MacLellan briefly told the Board that Golub will be producing an Evergreen Fund in 2025. It will
recycle every 3 years, and continues to grow. He plans on more research and will report back to us.
At 10:00 am, Robert Cunha made a motion to adjourn the meeting, which was seconded by Joseph
Foley, and approved by Carolyn Kosnoff and Fred Weiss
Next Retirement Board meeting will be held on Thursday, April 24, 2025 at 8:30. This meeting will be
held on Zoom and in-person. No investors will be present for yearly review.
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member