19:18A key discussion during the meeting centered on the performance and strategic selection between Bloomfield Capital and Mavic Capital for real estate debt investments. The board noted Bloomfield’s approach of managing all functions internally, justifying a higher management fee, and Mavic’s broader risk spectrum with slightly lower fees. Both firms were recognized for their ability to accept lower minimum commitments, aligning with the board’s investment goals.

29:12The potential investment in real estate debt comes at a time when the pension plan’s current allocation to real estate stands at around 10.5% to 11%, with a target of 15%. The board proposed increasing the real estate allocation by committing $1 million to either of the funds, with Mavic favored for its yield of about 11% and conservative underwriting practices. The decision on which fund to choose was tabled for the next meeting.

04:52In addition to real estate discussions, the board reviewed a quarterly investment report that highlighted the negative performance of the US equity markets, driven by tariff tensions with Mexico and China. The S&P 500 and small-cap stocks saw substantial declines, while international equity showed more favorable performance, particularly from the DFA fund. The representative from Mariner detailed the asset allocations, noting that the pension funds’ performance was slightly better than their respective benchmarks, despite being down about 80 basis points for the fiscal year.

09:44Further analysis included the performance of individual fund managers, with some underperforming indices, and an expectation of a portfolio recovery of about 1.5%. The volatility experienced in April was attributed to market reactions to tariff announcements and subsequent reprieves, which influenced a partial recovery by month’s end.

43:46Another topic was the exploration of a 2% Bitcoin allocation in the pension fund, presented by a consultant who provided insights into Bitcoin’s historical performance and potential impact on the fund’s returns. While the discussion acknowledged the evolving nature of Bitcoin investments, concerns were raised about its unpredictability and lack of widespread institutional adoption. The consultant noted that no public fund clients had engaged in Bitcoin investments, emphasizing a cautious industry stance.

36:26The board also delved into its investment policy. The policy mandates a cautious approach, avoiding investments in scrutinized companies and requiring regular reviews to ensure adherence to guidelines. Continuing education for board members was highlighted, with topics such as debt-oriented real estate potentially counting towards educational requirements.

49:18As the meeting concluded, the board touched on legislative updates, noting that the Florida legislative session extended beyond its expected end date, with a focus on the budget and minimal impact on local law plans. Members were reminded of the upcoming deadline for financial disclosure forms, and a final legislative report will summarize any changes affecting the pension plan.