Police & Fire Pension Subcommittee Meeting

Summary

Meeting Overview

The City of Lexington Pension Board convened on June 25, 2025, with John presiding over the meeting. The board addressed two agenda items during the session, both of which were informational in nature: a review of Asset Allocation Mixes and a discussion of International Equity Structure. One vote was taken during the meeting, and no public comments were heard. The session focused on providing board members with information on investment-related topics rather than taking formal action on major policy matters.

Attendance

The following members were present at the meeting held on 2025-06-25:

• Present: John, Susan, Chad, Tommy

No members were recorded as absent or late.

Votes and Decisions

The following decision was recorded during the June 25, 2025 meeting:

- Decision: Exclude Private Credit from Asset Allocation 23:48 The body voted on whether to exclude private credit from the asset allocation. The motion passed by a voice vote of 3 ayes to 1 nay, with no abstentions. Voting in favor were John, Susan, and Chad. Tommy cast the sole dissenting vote.

Contested Items

• Private Credit Inclusion: The board was divided over whether to include private credit as part of the asset allocation strategy. The matter was put to a vote, and the board ultimately decided to exclude private credit from the allocation. The item was recorded as a split vote, indicating meaningful disagreement among board members on the question. No further details regarding the specific arguments made by individual members for or against inclusion are available in the provided record.

Asset Allocation Mixes

1:04

The board held a discussion on asset allocation mixes, with the conversation centering on adjustments to the portfolio's composition — specifically around increasing fixed income exposure and evaluating the potential inclusion of private credit.

Key speakers in the discussion included John, Susan, and Tommy. The group examined various allocation scenarios, weighing the merits of shifting a greater portion of the portfolio toward fixed income instruments. Private credit was also raised as a potential allocation consideration during the debate.

Ultimately, the board decided to exclude private credit from the allocation mix. The item was informational in nature, and no formal vote or binding decision beyond the exclusion of private credit was recorded.

International Equity Structure

34:06

The board held a discussion on the current international equity structure, focusing on the performance of existing managers and potential changes to the portfolio lineup.

During the discussion, speakers John and Susan addressed the composition of the international equity portfolio and evaluated managers that had been underperforming. The conversation centered on whether to retain or remove certain managers as part of an effort to streamline the overall structure.

As a result of the discussion, the board decided to remove two managers from the international equity portfolio:

• Baillie Gifford
• Cap Guardian

Both managers were identified as underperforming, and their removal was presented as a step toward simplifying and improving the portfolio's structure.

The item was informational in nature, with the decision to streamline the portfolio representing the key outcome of the discussion.