A focal point of the meeting was the presentation on the pension fund’s quarterly performance and asset allocation. Mr. Madan from Capitol City provided an in-depth analysis, reporting a 9.28% increase in the latest quarter. The equity allocation was noted to stand at 72%, with large-cap equities showing a significant rise, nearly reaching the upper limit of the policy range. Despite this, international and small-cap equities remained underweight due to economic slowdowns.

Mr. Madan elaborated on the role of artificial intelligence in driving future earnings growth and the S&P 500’s concentration in a few large corporations, with 33% of the index consisting of only seven companies. He projected that the economy’s growth rate, initially adjusted due to tariffs, would normalize in the coming year. The board accepted Mr. Madan’s report unanimously.

A discussion followed regarding private equity investments, led by Mr. Burgess. He critiqued the current market for being oversized and overpriced, largely due to low interest rates. Mr. Burgess advocated for more transparent and independent valuations of private equity assets, highlighting that substantial institutions, like Harvard, have faced liquidity issues due to their commitments to private equity. He presented data indicating that private equity had underperformed compared to the S&P 500 and underscored the high fees often associated with these investments, which could strain the fund’s resources.

Moreover, the board addressed new regulatory requirements following the introduction of a Florida statute effective July 1. This law expands the list of companies ineligible for pension fund investments, particularly those boycotting Israel. The board assigned compliance responsibilities to the consultant. Miss Parish voiced concerns over potential political implications of this statute, emphasizing the importance of maintaining impartiality in investment decisions.

In addition to investment concerns, Miss Parish presented updates on the Summary Plan Description, noting administrative changes and the need to correct a potential typo in the pension multiplier. The board considered delaying the approval of the SPD until union contract negotiations conclude, which may influence the multiplier’s accuracy. Miss Parish also proposed establishing standardized operating rules and procedures for the fund, a move supported by the board to enhance consistency and streamline fund management.

The meeting concluded with a discussion on member resources, including the development of a member-specific portal to facilitate benefit calculations and access to pension information. While the portal promises to improve user experience, the associated costs were acknowledged as a consideration. Additionally, the board deliberated on the ongoing negotiations for a fixed pension multiplier, weighing the benefits of uniformity against potential complications.