HomeMy WebLinkAbout2025-05-29-RB-min Minutes of the May 29, 2025 Retirement Board meeting:
Present: Robert Cunha,Joseph Foley, Alan Fields, Carolyn Kosnoff, Michelle Malone and James Condon
Absent: Frederick Weiss
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 called the meeting to order at 8:30 am.
The Board accepted the 053025 Warrant and the May payroll. The April minutes were reviewed and
approved. Cashbooks for January, February, and March were approved.
Robert Cunha reviewed the May agenda with all Board members and staff in attendance.
It was decided in a recent audit, the monthly cashbooks will be handled by the Treasury Assistant in the
Tax Collectors Office. However, the position is now vacant and soon to be filled. Until that time,
Michelle Malone will continue to provide the cashbooks to the Board.
It was noted the Lexington Retirement Board received several distributions. First two (2)from Golub
Capital. One was for$98,405.00 on 04/24/25 and the other on 04/25/25 for$71,595.00. Two (2)
distributions were received from Monroe Capital. The first was on 03/20/25 for$84,048.00. This March
distribution date is accurate, but our notification was received recently. The second one was on
05/22/25 for$78,408.00. A capital call for$700,000.00 came in from Neuberger Berman on 05/01/25.
The Annual Benefit Verification form program administered by the Retirement Board is still active. As of
May 28, 2025, 381 of 485 have been returned to the office signed and notarized.
The State Board of Retirement requested a liability of service letter for former employee, Debbie
Scipioni, in reference to her purchasing prior service with Lexington as an active employee with the
State. Robert Cunha motioned to deny any liability acceptance, which was seconded by Joseph Foley,
and unanimously approved by Carolyn Kosnoff and Alan Fields. Ms. Scipioni was not a full time
employee and voluntarily resigned her position.
A brief discussion on service buybacks was presented by Jim Condon. He requested clarification on what
is deemed acceptable service purchases. The Board mentioned the member must be an employee with
20 or more hours per week and eligible for benefits.
An RFP has been issued for Legal Services with the Lexington Retirement System. Sacco &Collins, LLC is
the Boards current Legal representation.
Michelle Malone advised the Board there has been no real update on the Magarian case. A
Memorandum in Support of Objections was filed with C.R.A.B on 03/01/2024 and is still pending. There
is a backlog of appeals at the Contributory Retirement Appeal Board.
Stephen MacLellan presented the Meketa portfolio update at 8:40 am. April was a highly volatile month
in the capital markets is the wake of tariff announcements. Later in the month, tariff talk eased up and
countries were paused for 90 days. Domestic equities declined in April, but finished the month far
above its lows. Emerging market equities returned 1.3%for the month. Looking ahead, Steve cautioned
the uncertainty related to the US Administration's tariff policies and the impact on the economy and
inflation. China's economy and relations with the US will be an important focus as we move forward in
2025.
Steve gave the performance review of the portfolio as of April 30, 2025. The current balance as of April
30, 2025 is$260,794,328.00, up $3.9m for the prior month. We remain in uncertain times with market
performances. US equities remain down for a second month. The Global assets are doing well.
Wellington is up 15.1%YTD, while the Wellington Opportunistic fund is up 6%YTD. Most Domestic
equity buckets are down for the month. As of March 31, 2025, approximately 1%of the total fund was
invested in fossil funnels. The exposure within equities was 1%and exposure within opportunistic
assets was 0%. Steve concluded his presentation at 8:55 am.
Hilary Goldberg,Joy Perry, and Brian Garvey presented the Wellington review at 9:00 am. Brian began
with the Opportunistic strategy. This strategy leans toward exposure to opportunities that are
underpresented in traditional portfolios. This allows them to identify areas that are sources of
asymmetric return opportunities. The managers are big on seeking an information advantage through
use of less traditional data sources. Brian then briefed the Board on our financial standing. YTD, we are
up 9.4%, and in May alone, up 3.6%. Over the trailing past 12 months, Lexington has a 12.4% rate of
return. Activist Governments and precious metals were the main drivers. He did note that overseas
labor issues are not a problem like we have in the US. International Contrarian Equities are up 23%this
year. The healthcare sector has been mostly eliminated by Wellington Opportunistic. He claims there is
regulatory from the US and the strategy was broken overseas. He wrapped up this portion of the
presentation at 9:15 am.
The Enduring Assets portion of the presentation began at 9:15 am. This strategy seeks to provide risk-
adjusted returns over time by investing in structurally-advantaged infrastructure businesses. The goal is
to seek meaningful returns from both capital appreciation and dividend yield;with a preference for
growth over income. Wellington has 4 investment focuses they look into theme-wise. Decarbonization,
Transmission, Flexible generation, and Data infrastructure. A total breakdown can be found on page 13
of the presentation deck. Towers and telecommunications are a main driver in Asia. Gas and electric
companies are doing great through their distribution model. Wellington is seeing a boom in business
down in Texas. Atmos Energy company is a favorite among the five utilities in the South. They have
moved away from Canadian Railway. It has not been a provider to the firm. Tariffs will not help the rail
industry going forward coming out of Canada. The wildfires out west have hurt Edision and PG&E. Brian
wrapped up at 9:30 am and opened the floor to questions.
Robert Cunha made a motion to adjourn the meeting at 9:33 am, which was seconded by Joseph Foley,
and unanimously approved by Carolyn Kosnoff and Alan Fields.
The next Retirement Board meeting will be held on Thursday,June 26, 2025 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