A primary focus of the meeting was the new legislative amendments affecting governmental agencies in Florida. The board was briefed on changes to Statute 287 that mandate affidavits confirming that new contracts with counterparties do not involve entities from “countries of concern” such as China, Russia, North Korea, Iran, Syria, Cuba, and Venezuela. Additionally, amendments to Statute 787 require certifications from counterparties that they do not engage in labor coercion. These measures, described as compliance obligations, were noted not to disrupt current practices significantly, as affidavits would be distributed to service providers to ensure adherence.

Investment strategies were a major topic, with presentations from the shortlisted firms Winslow Capital and ClearBridge. Winslow Capital emphasized its large-cap growth strategy, presenting an investment approach likened to a “no preferred habitat approach to growth investing,” akin to assembling a specialized team like the New York Yankees. The firm highlighted its focus on consistent growth, avoiding diversification into small cap, international, or fixed income products, and discussed its performance relative to the S&P 500 and Russell 1000 growth index. Winslow’s strategy includes investments in consistent growth, dynamic growth, and cyclical growth companies, such as Microsoft, Amazon, and Union Pacific.

ClearBridge, represented by Terence Fennessy and V M Carney, outlined a strategy combining resilience with diversification, featuring a concentrated portfolio of 40 to 50 names. The firm emphasized its long-term investment philosophy focused on sustainable business models and financial structures. ClearBridge categorizes its portfolio into stable names like United Healthcare, higher growth names such as Amazon and Nvidia, and cyclical investments, adjusting its strategy to outperform during market declines.

The board also discussed the potential sale of the Allspring portfolio and the challenges associated with transitioning funds, noting inefficiencies and costs involved in selling and repurchasing securities.

Attention turned to the treasury yield curve and declining inflation rates, which contributed to a positive market backdrop. Despite paying out more than intake, the pension fund’s market value increased to around $127.5 million, surpassing its assumed rate of return. However, the JP Morgan strategic property fund’s underperformance led to discussions on redeeming from this fund due to its exposure to office real estate and management team challenges.

The board examined the allocation and performance of domestic and international equity positions, contemplating rebalancing strategies to address an overweight in domestic equity and underweight in international assets. Suggestions included increasing international equity exposure to 15% and reallocating funds from Vanguard Total Stock Market Index and Allspring portfolio to the Saw Grass fund.

A proposal to engage a securities monitoring firm was considered to enhance oversight of portfolio investments. The board concluded with administrative matters, including approving a contract transition from Anco to Mariner and discussing upcoming events like the winter trustee school.

Retirement applications were also addressed, with approvals for individuals in the accounting department and technology security services, alongside the recognition of a retiring fire engineer.