HomeMy WebLinkAbout2019-07-25-RB-min Minutes of the July 25, 2019 Retirement Board Meeting:
Present: Carolyn Kosnoff,Alan Fields, Frederick Weiss
Absent: Bob Cunha,Joe Foley
NEW MEMBERS: (7) Sharon Gunda, Human Services Coordinator; Katharine Labrecque, Mgmt.
Fellow; Ashley Fisher-Allen, SSI; Gwen Jefferson, Admin. Clerk; David Goodrich, Mechanic; Jamal
Bell, Matias Arias, Laborers
RETIREMENTS: (1)Robert A. Sweeney, Patrolman, 7/31/2019
DEATHS:None
The Board accepted the 07312019 Warrant and the July payroll. The June minutes were reviewed and
approved, as well as the cashbooks for May 2019.
Carolyn Kosnoff reviewed the July agenda with the Board members and staff in attendance. There was a
White Oak distribution of$89,565.00. The Vanguard balance is up to$15,773,890.00 as of 6/30/2019.
Marguerite Oliva spoke briefly regarding the matter of Ryan Bugler. Mr. Bugler's monthly pension has
been recalculated effective the July 31, 2019 payment. Also, he was advised he had one (1) month to
appeal. The Retirement Board has sent proper notification regarding this matter. The certified letter
was returned to our office. Garnishment for overpayments will commence in the near future. The last
update we had from Mr. Bugler was that he was seeking legal counsel.
Henry Jaung and Tom Dunleavy presented the Meketa update. The portfolio balance as of June 30,
2019 was$175,526,761.00. The first six(6) of 2019 have produced excellent numbers. Our YTD is at
12.4%.The Domestic Equity Asset portfolio is up 20.3%this year. We are seeing great things out of the
Russell 3000, S&P 500, and PRIT. Henry reviewed our 3/5/10 year benchmarks. Both our long term and
short term investments are doing well. It was noted we have exceeded the actuarial assumption 10 year
benchmark. Overall, our asset allocation is holding strong and should remain as is for now. Meketa will
look into private debt vs. public equity and see what options would could have later in the year. Looking
for something with the probability of achieving at least a 7.5% return over a 1-3 year period.
Jonathan Setiabrata and Landy Pheloung presented the White Oak review. This firm has$5.613 in assets
under management. Sector exposure based on market value is primarily in Energy and Industrials. They
lend to smaller companies with low risk profiles. White Oak has experienced defaults, but claim most
are due to technical issues, not payment issues. However,they do have a few companies which have
stopped payments on the loans. Most of the loans issued are asset based loans (ABL),which are more
secured and have a better duration over time. Over a 3-5 year span,White Oak expects around a 7.5%
yield on the loan. Jonathen concluded that White Oak has secured their first Asian market client, as well
as researching in the Middle East for clients.
Sean Duff and Chris Lund presented the Monroe Capital review. The firm currently has$8.213 in assets
under management using 115 employees. Just over 65%of their limited partners are in Pension Plans.
Roughly 80%of all lending is sponsored,while 20% is non-sponsored. They will write 30-40 loans per
year. Less than 3%of those are ABL loans. Since 2004, Monroe has had 14 defaults out of 362 write
loans. They boast a strong 16 year track record of successfully delivering attractive returns. The
recovery rate on defaulted loans is around 70%. Chris did mention the firm looks for signs of trouble
with all the companies under management, especially if a recession is forthcoming. They will use early
intervention tactics of help the companies avoid that potential problem. In all, Sean stated our
expectations of what Monroe does for our portfolio are being met.
Board members were notified of the number of credits required by PERAC. There will be a seminar at
Holy Cross in Worcester on Sept. 12th regarding Emerging Issues worth 3 credits. Online courses are
available on the PROSPER website.
Fossil Fuel exposure remained at 4.8%for 2019
Future Board meeting dates are August 291h, September 26th, October 24th, November 25th and
December 20th. All meetings are scheduled for 8:00 am in Cary Memorial Library.
Carolyn Kosnoff motioned to adjourn the meeting at 10:00 am, which was seconded by Alan and
approved by Fred.
The next Retirement Board meeting will be held on Thursday,August 29, 2019 in Cary Memorial Library
at 8:00 am. KAR and Matthews Asia are expected to attend.
Absent
Robert Cunha, Chairman Alan Fields, Appointed Member
Absent
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member