741 Colonel Ledyard Highway

Ledyard, Connecticut 06339

TOWN OF LEDYARD

Retirement Board

Meeting Minutes

Chairman

John Rodolico

Regular Meeting

Tuesday, May 16, 2023

10:00 AM

Annex Meeting Room - Hybrid

Format

CALL TO ORDER

Chairman Rodolico called the meeting to order at 10:01 a.m.

II.

ROLL CALL

Board Member William Thorne

Board Member Roger Codding

Chairman John Rodolico

Present

Board Member Daniel P. Panosky

Board Member Sharon Wadecki

Excused

Also present:

Chris Rowlins, Fiduciary Investment Advisors.

Staff present:

Mayor Fred Allyn III

Marisa Iannella Rodriguez

Matt Bonin

Ian Stammel

Christina Hostetler

III.

PRESENTATIONS

Chris Rowlins, Fiducient Advisor.

Chris Rowlins, Fiduciary Investment Advisors presented the Town's first quarter investment review,

the April flash report and an Executive summary.

Mr. Rowlins started by saying that the first Quarter looked very good. He explained the Portfolio

Expenses which consist of 44 basis points, Webster Bank base cost which is a minimum annual

fee of $10,000.00 and the Fiducient Advisor's fee which is a flat fee (not subject to market

performance or value).

Market themes -

Volatility has persisted across all segments of the market. Federal policies, economic strength

and stress in the regional bank sector continue to make headlines.

There is a notion of reduction in inflation, however the reduction path is not expected to be

smooth. The silver lining of inflation is more returns on fixed incomes.

Economic review -

The labor market remains resilient. Strong consumer financial positions.

Bonds are doing well.

U.S. dollar continues to fall. The dollar index fell 1.0 percent in the first quarter.

The War in Ukraine was expected to have a major impact on the demand for gasoline and oil,

but it did not unfold. The mild winter also helped limit the impact on demand.

International markets have been strong, they were up 8.5% for the quarter. Factors such as the

opening of China's economy after Covid lockdown has helped the international markets.

Emerging markets such as Latin America and Mexico have done very well since on-shoring their

supplies.

Portfolio -

Approximately 1.4 million dollars in gains for the quarter and 1.5 million in gains for the fiscal

year. Ending value of 28.4 million dollars at the end of the first quarter.

Year to date fixed income was up 3.7%.

The decision to add the BlackRock strategy played a good role since BlackRock was up 1.4%,

while other strategies were either flat or down.

Domestic equity such as Touchstone and Neuberger have delivered some solid results.

April Flash Report -

The environment was conducive for real assets.

The Portfolio was up 1% for the month.

Benchmark was up 70 basis points.

Commodities were down slightly.

Bond markets saw modest gains.

U.S. Small cap lagged.

U.S Large cap outperformed on muted volatility and strong value sector performance.

REITs posted a positive performance.

The April portfolio was a bit flat but if the overall momentum continues until June, it will be

favorable because the June 30th number is the most important one from a funding perspective.

Manager Performance -

Rates were trending sideways but there is a higher coupon.

Domestic Equity was up 40 basis points.

International Equity was approximately 40 basis points ahead. Invesco continued to deliver

attractive results.

Real assets were up 1.5% and the benchmark was up 1.3%.

Executive Summary -

Fiducient Advisors recommendations/comments:

Asset Allocation - 2023 Capital Market Assumptions & Asset Allocation. Fixed income remains

an important part of a broadly diversified portfolio and can serve to temper portfolio volatility.

The restoration of higher interest rates in 2023 is expected to generate higher returns for the

portfolio’s fixed income allocation.

Given the plan’s 6.25% discount rate and strong funded status, the Retirement Board may want

to revisit the portfolio’s allocation to fixed income in light of higher rates and expected returns.

Based on Fiducient’s modeling, a 10% increase in the portfolio’s allocation to fixed income

serves to deliver attractive risk adjusted returns.

Fixed Income Portfolio - Suggestion to further consider reducing the allocation to the BlackRock

Strategic Income Opportunities to 2.5% and reallocating those funds to the intermediate

strategies to get duration and higher credit exposure.

Given the current environment of inflation both domestically and abroad as well as the

likelihood of Federal rate cuts portfolio allocations to broad real assets will be important.

Suggestion to modestly reduce the allocation target from 5.0% to 2.5% and to use the proceeds

to increase the portfolio’s allocation to fixed income given the return/risk tradeoff.

The Board agreed to make the following changes within the current target ranges:

Reduce the BlackRock position by 2.5 % and reallocate those funds to other fixed income

sleeves.

Reduce the Real Asset allocation down to 2.5% and reallocate those funds to other fixed income

sleeves.

DISCUSSED

RESULT:

IV.

APPROVAL OF MINUTES

Motion to APPROVE Regular Meeting Minutes from April 18, 2023, as written.

APPROVED AND SO DECLARED

John Rodolico

RESULT:

MOVER:

Daniel P. Panosky

SECONDER:

Thorne Codding Panosky

Wadecki

AYE

EXCUSED

ABSTAIN

Rodolico

DIRECTOR OF HUMAN RESOURCES UPDATE

Director of Human Resource update.

Marisa Iannella-Rodriguez, Human Resource Director reported three requests for withdrawals.

Two were straight cash withdrawals and the third was for a rollover.

DISCUSSED

RESULT:

VI.

FINANCE DIRECTOR'S REPORT

Finance Director’s Report.

Matt Bonin, Finance Director will review Chris Rowlins, Fiducient Advisor's trade

recommendations.

DISCUSSED

RESULT:

VII. OLD BUSINESS

Any other Old Business to come before the Board.

Discussion and possible vote on updates to the Investment Policy Statement

Approved the following revisions to the Town of Ledyard IPS:

1. Change the name of the board overseeing the Pension Plan from the “Pension

Board” to the “Retirement Board” based on Ordinance #200-010.

2. Add clarification on the timeframe for which the fund shall achieve full funding

and the overall rate of return to be used in actuarial calculations.

3. Add the Town Finance Director authority to liquidate fund holdings to maintain

sufficient liquidity to pay plan obligations and to determine how annual Town

contributions are allocated within the fund.

4. Move revision history to the last page.

5. Add signature line for the Retirement Board Chairperson.

APPROVED AND SO DECLARED

William Thorne

RESULT:

MOVER:

John Rodolico

SECONDER:

Thorne Codding Rodolico Panosky

AYE

Wadecki

EXCUSED

VIII. NEW BUSINESS

Motion to APPROVE retirement benefit for John Gardner in the amount of $1,265.32 in the

form of a modified cash refund annuity effective July 1, 2023.

APPROVED AND SO DECLARED

John Rodolico

RESULT:

MOVER:

William Thorne

SECONDER:

Thorne Codding Rodolico Panosky

Wadecki

AYE

EXCUSED

Motion to APPROVE payment of Fiducient Advisors invoice #609_03312023, dated May 2,

2023, in the amount of $12,112.03 for the Town of Ledyard Defined Benefit Pension Plan

consulting costs for the period January 1, 2023 to March 31,2023.

APPROVED AND SO DECLARED

John Rodolico

RESULT:

MOVER:

William Thorne

SECONDER:

Thorne Codding Rodolico Panosky

Wadecki

AYE

EXCUSED

Motion to APPROVE USI invoice #90081435 dated April 30, 2023, in the amount of $400.00

for benefit calculation of John Gardner.

APPROVED AND SO DECLARED

John Rodolico

RESULT:

MOVER:

Roger Codding

SECONDER:

Thorne Codding Rodolico Panosky

Wadecki

AYE

EXCUSED

Any other New Business to come before the Board.

None.

IX.

ADJOURNMENT

To ADJOURN the Regular Meeting at 11:06 a.m.

A motion was made by Board Member Thorne, seconded by Chairman Rodolico, that this be

Approved and so declared. The motion carried by the following vote:

APPROVED AND SO DECLARED

William Thorne

RESULT:

MOVER:

John Rodolico

SECONDER:

Thorne Codding Rodolico Panosky

Wadecki

AYE

EXCUSED