HomeMy WebLinkAbout2020-07-30-RB-min Recap of the July 30, 2020 Retirement Board meeting:
The Lexington Retirement Board met remotely through Zoom tele-conferencing during the ongoing
Covid-19 Pandemic. The Town Clerk's Office meeting posting included the information for any party to
join the call. All Board members were present for this meeting. Chairman Robert Cunha called the
meeting to order at 8:30 a.m.
The Board accepted the 073120 Warrant and the July payroll. The June 2020 minutes and May 2020
financials were reviewed and approved via email.
Bob Cunha reviewed the July agenda with all Board members and staff in attendance.
It was noted in the meeting we received two (2) distributions this month. White Oak distribution for
$42,436.00 and Angelo Gordon for$38,119.00.
Henry Jaung, Steve MacLellan, and Tom Dunleavy presented the Meketa portfolio update at 8:35 a.m.
The portfolio balance as of June 30, 2020 was$176,203,988.00, up $2.8m from last month. The QTD is
up 12.7%. We continue to see strong numbers posted as the market continues to recover during the
Covid-19 crisis. Henry mentioned most asset classes in the portfolio are coming back positive. Domestic
equity asset sectors are up 24.7%for the QTD. RhumbLine and Acadian are starting to rebound, as well
as Wellington this quarter.
In June 2020, Meketa issued an RFP for international equity managers and received back a total of 36
responses. These managers will be reviewed by Meketa and then presented to the Board at our August
meeting.
Henry provided some information on the TALF program. As of July,the program has not lived up to the
expectations set forth. The fixed income spread has remained extremely low and shows no sign of
movement to obtain a 7% minimum return to investors. This was an investment opportunity the Board
discussed at the April 2020 Board meeting and decided not to participate.
As of June 30, 2020, Fossil Fuel exposure remains at 2.8%. Within the exposure, 1.2%of the total system
is invested in the Carbon Underground 200 Companies. This percentage is down from 1.5% in earlier
reports.
William Cullinan presented the Angelo Gordon update. Currently,AG is managing over$35b in assets.
They specialize in credit and real estate strategies. AG invests in inefficient markets to generate
consistent absolute returns. Their investment decisions are based on extensive research and prudent
use of leverage. They tend to avoid consumer drive sectors. Mr. Cullinan explained the AG strategy for
what is the right time to buy portfolios as businesses require funding. He then spoke of the Direct
Lending Fund IV strategy and the quality of deals they are seeing as the economy makes a positive turn.
Fund IV as achieved $9.9b in total commitments and is hoping to deploy in the coming months.
Chairman, Bob Cunha, excused himself from the Board meeting at 9:35 am. Joseph Foley chaired the
meeting going forward.
Landy Pheloung and the Board agreed to reschedule the White Oak presentation to our August 27th
Board meeting.
Joseph Foley motioned to adjourn the meeting at 9:45 a.m.,which was seconded by Alan Fields, and
approved by Carolyn Kosnoff and Fred Weiss.
The next Retirement Board meeting will be held on Thursday,August 27, 2020 at 8:30 a.m. The meeting
will be held remotely via Zoom teleconferencing.
Landy Pheloung from White Oak will present the update at 9:00 a.m.
David Dali from Matthews Asia will present the update at 9:30 a.m.