HomeMy WebLinkAbout2026-03-26-RB-min
Minutes of the March 26, 2026 Retirement Board meeting:
Present: Robert Cunha, Carolyn Kosno?, Joseph Foley, Frederick Weiss, Michelle Malone
and Jim Condon
Absent: Alan Fields
The Lexington Retirement Board met remotely through Zoom tele-conferencing and in person.
The Town Clerks O?ice posted the meeting, which included the information for any interested
party to join the call. Robert Cunha, Joseph Foley, Carolyn Kosno?, Frederick Weiss, James
Condon and Michelle Malone were present. Robert Cunha called the meeting to order at 8:30
am.
The Board accepted the 033126 Warrant and the March payroll. The February minutes were
reviewed and approved. The December and January cash books are pending due to work on the
Annual Statement for PERAC.
Robert Cunha reviewed the March agenda with the Board members and sta? in attendance.
The Board was informed of three (3) distributions. On 02/27/26, a distribution of
$94,018.00 was received from Neuberger Berman. A Monroe Capital Fund IV distribution of
$46,740.00 came in on 03/05/26, and lastly, $33,027.08 was received on 03/25/206 from
Angelo Gordon Fund 3.
Michelle Malone informed the Board that Arnold Lovering will be taking over the cashbooks
from us once the Annual Statement to PERAC is complete.
Carolyn Kosno? spoke briefly of the OPEB report. As of this meeting, all looks good with
our Vanguard account. It continues to show growth and remains at the 65-35 split. She will
report back once all is finalized.
Meketa will update us at the April Board regarding the RFP manager search. Steve was
unavailable to attend the meeting.
HIPAA authorization has not been passed by MA Legislation yet. Update at a future
meeting. Pre-employment physicals is at the center of the delay.
Robert Cunha made a motion to approve the annual COLA (Cost of Living Adjustment) of
3% of the first $15,000.00 for retirees e?ective July 1, 2026. This motion was seconded by
Frederick Weiss and unanimously approved by Joseph Foley and Carolyn Kosno?. Alan
Fields was absent from the meeting.
Joseph Foley inquired about the Cyber Security clearance for the Retirement O?ice.
Michelle Malone is just waiting to hear back from those involved.
Henry Juang presented the Meketa update at 8:38 am. The first quarter for 2026 has been
eventful. The portfolio has seen may positive/negative swings. US equities declined 0.5%,
while Small-Cap and value stocks continue to outperform Large-Cap and growth. Non-US
equities continued to perform well over US stocks. Henry feels it is a rotation away from US
Tech companies and strength in Asia tied to A.I. hardware demand. Emerging markets
gained 5.5% last month. China is still lagging behind in part to software stocks struggling.
After a strong start to the new year, eyes have turned towards the Iranian conflict. This will
lead the way to higher energy prices and a potential impact on growth, inflation, and
policies.
The overall performance as of February 28, 2026 was $310,641,822.00, up $3.5m from the
January 31, 2026 report. This has the portfolio up 1.6% for the month, and 4.2% YTD. The
numbers were relatively flat for the month on Domestic equity. International equity
continues to rise. Global equity assets are now up 16.2% YTD. Wellington continues a
great run. Henry mentioned they are up 16.2% YTD and 39.7% over the past 1 year. Monroe
and Golub scheduled to present today, but they are both over 7% YTD. Henry wrapped up
his presentation at 9:00 am.
Tyler Moynihan and Halle Mogk presented the Monroe review at 9:01 am. Monroe is a
$23.6b diversified private mid-market lender with exposure across sponsors, industries,
and regions throughout the United States. Tyler mentioned our Net IRR stands at 7.2% in
the unlevered sleeve of Fund IV. He mentioned the reinvestment period will begin in April
2026 with the ability to redeploy funds without any issues. The top markets right now for
lending are in the technology sector. Out of the 131 portfolio companies within Monroe,
roughly 70 are under contract with a high equity upside. Asked if any companies have
defaulted on payment, Tyler responded no. Borrowers are keeping in line with their
contractual obligations. Questions from the Board arose such as the Iranian War. Monroe
mentioned deals are still happening at the firm and technology spreads are at the forefront.
He concluded that with such a diverse portfolio, Monroe will be able to operate without any
defaults as of this meeting. His presentation wrapped up at 9:25 am.
Peter Kenny & Dave Manzano presented the Golub review at 9:30 am. Peter gave a quick
update on the firm. Golub currently has over 1,100 employees handling over $90b in
capital under management. This firm deals with resilient industries with expertise in
software, healthcare, and financial services, as well as limited specialty consumers. The
goal is to generate consistent net returns and current income by maintaining low defaults
and credit losses. Golub will lend to higher quality companies over others and not just out
there to strike a deal. Peter mentioned that Golub’s default rate is extremely low, posting
around 0.94%, while the Payment default rate is 0.48%. Since 2004, the average annual
Loss Rate from defaults is 0.00%. Fred Weiss raised some questions regarding use of A.I.
as a tool. Dave Manzano mentioned the follow the A.I. trends, but mainly use employees
for data and security applications that A.I. cannot provide at this time. Dave will forward a
copy of the Underwriting A.I. impact on Software Borrowers to the Board for more clarity on
Golub’s stance. Dave stated Golub is experiencing no A.I. disruptions at this time or in the
near future. Golub wrapped up the presentation review at 9:45 am.
Robert Cunha reminded the Board to read and review the I.O.G report from the
Commonwealth email from March 12, 2026, and all additional emails regarding Attorney
Michael Sacco going forward.
Robert Cunha made a motion to adjourn the meeting at 9:57, which was seconded by
Jospeh Foley, and unanimously approved by Fred Weiss and Carolyn Kosno?.
The next Retirement Board meeting will be held on Thursday, April 23, 2026 at 8:30 am.
RhumbLine will present at 9:00 am. Wellington Opportunistic will present at 9:20 am
Future Board meeting dates: May 28, 2026 & June 25, 2026,
_____________________________
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member