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Danvers Retirement Board approves $500,000 drawdown from Kayne Anderson after performance review
Summary
Segal Marco advised the Board that Kayne Anderson has underperformed over three years and recommended a gradual reduction. The Board voted unanimously to draw $500,000 for cash needs; Segal Marco will revisit manager benchmarking and an RFP for Eagle Capital research is planned for early 2027.
Rafik Ghazarian, Segal Marco investment manager, told the Danvers Retirement Board on May 27 that April performance rebounded after a weak March but that Kayne Anderson has underperformed in the three-year lookback. He recommended a cautious, systematic reduction in exposure to reduce risk and meet near-term cash needs.
Ghazarian recommended a specific cash withdrawal: "Pulling out a little at a time and systematically reducing the risk is the best course of action." Rodney Conley motioned to draw $500,000 from Kayne Anderson for cash needs; Vincent Malgeri seconded and the Board approved the motion unanimously. Ghazarian said Segal Marco will bring an RFP for further manager review at the end of the year and flagged Eagle Capital for additional research in January 2027.
