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HomeMy WebLinkAbout2018-09-27-RB-min Minutes of the September 27, 2018 Retirement Board meeting: Present: Robert Cunha, Alan Fields, Frederick Weiss, Carolyn Kosnoff, Joseph Foley, Marguerite Oliva, and Jim Condon NEW MEMBERS: (27) Meaghan Leary, Water Dept. Laborer/Truck Driver; Jennipher Burgess, Kelly Downing, Meghan Fuery, Peter Konz, Mina Lee, Jarrett Piette; Mallory Spero, Christina Wong, SIA's; Leah Cramer Gibbs, Shalini Gupta, Megan Healy, Nellie Ng, Casey Porcello, Marie Sime, Celia Vaughan, Tyler Sullivan, Alicia Hooper, Caitlyn Connolly, Kurtis Skaife, Tressa Snydeman, Megan Garcia, IA's; Laurie Lane, Over Max Aide; Alicia Fernandez, Library Tech; Krista Murphy, Town Accountant; David Ashness, Custodian; James Malloy, Town Manager. DEATHS: Rita Casey, School Sec., 8/25/18; Harriet Crafts, School Aide, 8/24/18, Sophie Stevens, survivor of Raymond Stevens, 09/09/2018. RETIREMENTS: Owen Hartery, DPW Parks, Leadman, 10/26/18 The Board accepted the 092818 Warrant and the September payroll. The August minutes were reviewed and approved, as well as the cashbooks for July 2018. Bob Cunha reviewed the September agenda with the Board members and staff. It was noted we received a distribution from White Oak in the amount of$56,897.00. The Board was updated on the status of Tamzin Ladd and Robert Staples. As of Sept. 25, 2018, both retirees have filed the paperwork for Section 91A earnings with PERAC. Sandra King notified our office that both retirees are in compliance with earnings for 2017. No further action will be taken. Henry Jaung and Thomas Dunleavy presented the Meketa update. The portfolio balance as of 8/31/18 was $174,420.203.00, up 4.9% for YTD. The US Markets remain very strong in the 3rd quarter. We are still overweight in US and Global Equities, which has been a major contributor to the portfolio's performance. Henry stated we should remain overweight in the US equity market for the being. Also, most managers we have chosen are doing well for us and are producing decent returns. It was also noted PRIT RE managers are doing well over the past 12- 16 month range, up around 7.5%. Henry spoke briefly about the recent Fed interest hikes. As long as hikes are expected, we should remain stable. We should see one more rate hike by the end of 2018. This should not alter the portfolios performance. Fossil Fuel exposure, as of June 30, 2018, remains unchanged at 4.6%. The Board had invited three finalists to present at the September Board meeting; Monroe, Angelo Gordon/Twin Brook, and Alcentra to be the new Senior Direct Lending manager. Leading up to this meeting, Meketa was advised that Monroe will no longer be accepting any onshore capital and withdrew from the selection process. Thorne Gregory presented for Alcentra. This firm was established in 2002 and is one of the largest direct lending firms in Europe. They primarily focus on senior loans to middle and upper middle market borrowers. Alcentra currently manages over $35 Billion in credit assets. The loan life for each investment has a 6-7 year life span. A team of strategists and an investment committee evaluate both private equity sponsored and unsponsored opportunities. A dedication group of only six senior professionals are authorized to approve loans. In closing, Alcentra's direct lending funds and strategies have performed to all expectations. It has been rare for them to experience a realized loss. William Cullinan from Angelo Gordon and Drew Guyette from Twin Brook presented to the Board. Through Angelo Gordon, Twin Brook was established in 2014 as the direct lending subsidiary for Angelo Gordon. It is an employee owned firm with over $25 Billion in assets. Angelo Gordon was founded in 1988, and is 100% employee owned. They currently hold over $32 Billion in assets. This firm focuses on the lower to middle market sponsored companies. The current private credit team has been together for over ten years, and managed through the last recession this county endured. The company has not had any payment defaults in the past three years. There are no dealings with device companies or construction companies. Reason is primarily no exposure to fossil fuels. Alcentra and Angelo Gordon concluded their presentations by 10:00 am. The board was then given a chance to discuss each firm. There seems to be more confidence in the Angelo Gordon/Twin Brook group over Alcentra. Henry feels it would be a great mix for our portfolio. This group deals with sponsored companies. The Board will move forward to vote on this RFP at the October Board meeting. This vote could be delayed if Golub is invited to present in October. PRIT and Golub will be attending the October meeting for reviews. Bob Cunha motioned to adjourn the meeting at 10:10 AM, which was seconded by Joe Foley, and unanimously approved. The next Board meeting will be held on Thursday October 25, 2018 at 8:00 Am in Cary Memorial Library. Robert Cunha, Chairman Alan Fields, Appointed Member Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member Frederick Weiss, Appointed Member