HomeMy WebLinkAbout2025-10-23-RB-min Minutes of the October 23, 2025 Retirement Board meeting:
Present: Robert Cunha, Joseph Foley,Alan Fields, Frederick Weiss, Carolyn Kosnoff,
Michelle Malone and Jim Condon
Absent: None
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,Alan Fields,
James Condon and Michelle Malone were present. Robert Cunha called the meeting to order at
8:30 am.
The Board accepted the 103125 Warrant and the October payroll. The September minutes were
reviewed and approved, as well as the August cashbooks.
Robert Cunha reviewed the October agenda with all Board members and staff in attendance.
A White Oak Summit distribution of$6,435.00 was received on 09/29/2025.
The final Wellington Opportunistic redemption was received on 10/01/2025 for
$26,523,779.08. Total close-out of this strategy will be 10/23/2025.
A Fidelity Contrafund redemption occurred on 09/30/2025 for$5,000,000.00.
An Acadian All Cap fund subscription of$10,600,000.00 occurred on 10/16/2025, as well
as a RhumbLine Russell 1000 subscription of$6,625,000.00 on 10/17/2025.
The conversation regarding Cybersecurity Insurance was tabled for the 11/20/2025
meeting. Michelle will check with the Town Admin./ LT Department and report back to us.
There were no further comments regarding the September COLA discussion.
Meketa is actively reviewing RFP's for consulting search. Stephen will report back at the
November 20,2025 Board meeting. Arnold Lovering(Tax Collector) is working on the RFP
related to our bank operations.
Stephen MacLellan and Henry Juang presented the Meketa update at 8:40 am. He spoke
about 3rd quarter 2025 US stock gains and how the Russell 3000 gained 8.2%. The
Emerging markets were driven by Chinese stocks with the MSCI China index returning
20.7% in the quarter. Bond markets also performed well. The key will be how the Fed will
manage interest rates going forward and will tariff pressure eventually show up in inflation.
US stocks increased during this quarter due to lower interest rates and above average
corporate earnings. Technology stocks were the primary reason for the rise. A.I. continues
to move forward progressively.
The portfolio balance as of September 30, 2025 is$290,918,325.00, up$5.5m from the
previous month. The portfolio is now up 14.2%YTD. Domestic equities are running
average at 2.7%this past month, but remain up 14.4%YTD. International equity assets are
now at 26.4%YTD and at 7.0%the past QTD. Driehaus is a leader for emerging market
growth at 8.2%this past month and 24.6%YTD. Fixed Income assets remain somewhat flat
over the past quarter. Steve concluded that across the portfolio, we are well positioned at
this time. He will update us on the RFP search at the November Board meeting. His
presentation wrapped up at 9:00 am.
Paul Aherns and Eric Lemieux presented the White Oak Summit review at 9:01 am. Paul
mentioned the fund life expires on 01/01/2026 for Lexington. He then briefly explained
where the firm stands at this point. The net IRR right now is at 3.6%, which they had hoped
would have been higher at this point. They still have 10 outstanding loans out there waiting
to be paid off. Unfortunately,White Oak is trying to selloff assets to cover themselves.
Actively seeking buyers of Titania Drilling. This company builds oil rigs and could bring in
more funds for them. Eric mentioned their aviation sector is doing quite well, especially in
the jet engine sales force. One highlight made was that White Oak owns most of the
companies in their portfolio. The presentation was not what we expected to hear.
Lexington Retirement was hoping for an 8% return, not 3%. Paul wrapped up the
presentation at 9:20 am.
Ashley Carr and JC Gibbons presented the Neuberger Berman update at 9:27 am. Ashley
gave a brief update on the firm before JC Gibbons presented to the Board. As of this
meeting, our committed amount into NB was$7m, and the current equity called was$3m.
The contractual levered gross cash yield is at 14.4%, which is considered to being doing
well. He mentioned 95% of all loans are senior secured. They focus on investments in
software, healthcare and business services. JC stated they do not invest with auto, energy,
travel, housing, restaurants, or retail. He claims it is too risky and not considered high
quality. JC concluded that Neuberger Berman has$139b of capital dedicated to supporting
the private equity ecosystem. No mention of issues with their clients, and how tariffs
would not playa role in their business model. He wrapped up his presentation at 9:50 am.
Robert Cunha made a motion to adjourn the meeting at 9:55 am, which was seconded by
Joseph Foley, and unanimously approved by Carolyn Kosnoff, Fred Weiss and Alan Fields.
The next Retirement Board meeting will be on Thursday, November 20, 2025 at 8:30 am
Our December meetingwill be on Thursday, December 18t". PRIM will present.
Robert Cunha, Chairman Alan Fields,Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss,Appointed Member