HomeMy WebLinkAbout2020-08-27-RB-min Recap of the August 27, 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 083120 Warrant and the August payroll. The July minutes and June 2020
financials were reviewed and approved via email.
Bob Cunha reviewed the August agenda with all Board members and staff in attendance.
It was noted we received a Q2 reimbursement from the Fidelity Plan in the amount of$12,623.50
It was mentioned our contract with Dan Sherman Actuarial Services expires at the end of this year. An
RFP will be set up in the near future. Also, a decision was made for more data to be used from the
results of a recent study. Sherman Actuarial will be asked to use the same proposed mortality table and
the same COLA base for reports in 2026, 2027, and 2028. Carolyn Kosnoff also requested a report for
2027 using a lump-sum contribution by the Town of$2.Om with a 2027 fully funded schedule.
Henry Jaung, Steve MacLellan, and Thomas Dunleavy presented the Meketa portfolio update at 8:45 am.
The portfolio balance as of July 31, 2020 was$183,725,915.00, up $7.5m from last month. That equates
to an increase of 4.7%from June. The current portfolio is weighted just right and working for us at a
high level. After the early downfall in the market due to Covid-19,we have rebounded back to the point
we are posting a positive 1.4%for YTD. US Equities are a huge part of the rebound. KAR and Contrafund
are main drives behind the success. As far as our Cash holding, it was advised we should hold it for now.
No need to rush into a particular sector at this time. The market has been spectacular the week of 8/24.
The Dow has finally erased its losses for 2020, and the Fed plans to keep interest rates lower for a longer
period of time.
Henry presented the International Equity RFP Respondent review to the Board. Meketa had thirty four
(34) respondents whom met the criteria. Five were considered Highly Advantageous and discussed in
length regarding the criteria ratings. The five candidates were Acadian, Fiera Capitol, Nikko Asset,
Walter Scott, and William Blair. Acadian Asset Management, already part of the Lexington portfolio,
seemed the most advantageous after discussion. Chairman Bob Cunha made a motion to remain with
Acadian Asset Mgmt.,which was seconded by Joe Foley, and unanimously approved by Alan Fields,
Carolyn Kosnoff, and Fred Weiss.
Landy Pheloung presented the White Oak Summit Fund at 9:15 am. The firm currently has$6.8b in
Assets under management. Public Pensions are their top investor at 21%,followed by Insurances at 17%
and Union Pensions at 16%. The energy sector took a big hit during the Covid-19 outbreak, specifically
oil. The service industry was struggling for months,therefore vehicles were not being run. White Oak
was then financing these companies to keep them afloat. Just enough to keep staffing levels at a
minimum. Other loans WO had out there were in Healthcare and Tech companies. The healthcare
loans did well. Most were to nursing homes and elderly care services. Those loans were receiving
government assistance,which kept them steady, even during the Covid-19 crisis. Landy wrapped up the
presentation at 9:40 am.
David Dali and Chase Mazzariello presented the Matthews Asia Fund at 9:45am. Matthews Asia
currently has$22.Ob in Assets under management. There clients include global institutional investors,
private bank professionals, and high net-worth investors. The philosophy and approach used primarily
revolves around long-term economic growth and development of countries in Asia. Currently,Asia is
dominating much of the EM exposure. David stated China is the most important country of all in the EM
exposure. He mentioned China has almost fully recovered from the Covid-19 pandemic. Industrials are
back up and running, as well as airports. Airports are open and handling high volumes of travelers,
mostly domestic travel. David spoke of higher valuations and the downgrading of earnings in Asia. He
mentioned that Northern Asia is becoming the dominant hotspot in the EM sector. David wrapped up
his review at 10:10 am.
Bob Cunha motioned to adjourn the meeting at 10:15 am,which was seconded by Joe Foley, and
unanimously approved Carolyn Kosnoff,Alan Fields, and Fred Weiss.
The next Retirement Board meeting will be held on Thursday, September 24, 2020 at 8:30 am. The
meeting will be held remotely via Zoom teleconferencing.
Tom Seftenberg from Driehaus Emerging Markets will present the update at 9:00 am.
Maritza Gonzalez from K.A.R (Kayne,Anderson, Rudnick)will present the update at 9:30 am.