##VIDEO ID:JcuXJkbtKfk## the roll call on the police side uh Tommy Blair here Dan adovasio here will Stanley is not here yet and Joseph Smith is not here yet Chris kean's present on the fire side AJ pres and we have Steven Lee new member welcome thank you here de here pres all right moving on to public comment I see a few new faces here is there any public comment eight uh move on to approve the May 7th 2024 minutes to vote to approve those please sign so moved second minutes on the fire side motion to accept motion to accept second second who said that pick one all in favor I I all right uh we need to approve the expenses paid or review them all right Gman have time to review them can I get a motion to approve expenses paid don't mov Sor everyone review the expenses yes questions yeah just I think Debbie should probably just highlight illustrate that with with mof retiring oh mo yeah just just give a brief rundown on that that that maybe an adjusted number eventually one of the firefighters retired and he is uh with him in the city there at a little odds with his last paycheck and some overtime and stuff so what we've done is we have calculated her his time of what he has at this moment when he retired we G ahead and paid him and when he in the city come to an agreement if the pension owes him more money then we'll reimburse him the money if he owes the pension board money then he'll reimburse the pension that's the way we left there right now there's some calculus involved so it okay kind of get lost in the weeds so there may be the adjustment at some point but just make sure everybody knows that that was occurring and it's um Pedro's handling that with the city no no not him like the city it's going to be between Todd and the city got it okay now uh Pedro and I just discussed might get them paid now okay okay so noted um maybe we could put that in the agenda for next meeting to have an update on that okay just so we close that out for next meeting yeah of course all right any other questions expenses motion to accept Okay who who give the first and second I'll do a motion to accept first okay who Okay second Dean faor I okay all right moving on to item e fiscal year budget 2024 2025 de Grant okay there there's not going to be any changes because we still have money in the font and the uh each budget um right now what's left in the budget to the end of September of uh this year on the police side there's 19,999 left in the budget and on the fire side there's uh 16,826 left on the fire side so we still have we're not over the budget we're not under it so probably status quo for this year make a motion to approve yeah we need a motion to approve move we adopt the same budget as last year as presented by Debbie second second all right just for the purposes of documentation uh Joe Smith is now here now if you want okay the fire departments got to do their side okay same no changes correct yeah motion motion to adopt I'll second it first by AJ second by me all in favor all now and what you might do now Chris since we didn't get to go through C to reappoint you back on the board you do have a a quorum here so the board Chris's time is up and he's a fifth member so the the members of the board have to approve him to sit on the board again so it's up to you guys if you want him do we want him I move that we reappoint Chris to the board second need a vote hi congratulations Chris oh thank [Laughter] you back in business okay all right so then now we have Doug hey Doug you there I am here can you hear me yes sir I think it's your turn all right now the ever awaited for investment return assumption study right um I've did one for both police and fire the results are pretty similar um we discussed this at the February meeting looking at lowering the Assumption from 7.4 to 7 now I'm not suggesting that we go immediately to 7 but the background of this is the the average plan in the state right now is right around seven Florida Retirement System's been at 6.7 for a couple of years and as we all know pension plans are done in comparison to each other and also to F FRS and now that's also aside from the fact that actuaries and investment folks overall have generally been recommending you know kind of a Glide path reduction slowly downward over time and you know we we used to be at 8% for many years and in a couple of stages we got down to where we are now to 7.4 but we've been holding so it's it's time to revisit um and typically the way it goes is we'll look at the impact today if if we went immediately to S and then figure out a Glide path and how to get there so I think we'll just deal with police first although fire is very similar if you look at the first page of our study you just go down to the bottom and look at the difference in the contribution uh for the city before and after 7.4 versus 7 the the funding impact is about 4 4.78% of payroll for police meaning if if you told me go back and revise the valuation report use a seven instead of a 7.4 I would return it showing that the city has to put in that extra 4.78% of payroll every year going forward of course we know the way we did it in the past is we we typically do a Glide path so we would recommend that with the next valuation 10124 that you you go from 7.4 to either 7.3 or 7.2 and then each year we can revisit until we get to the seven so let me let me pause there and see if I can answer any questions for police before I jump into the fire you guys have any questions do you have it on you should have it on the computer is this it no oh have something from Foster and Foster oh oh oh c want to see our copy got it I it's not on those it's I sent you guys this I think right the ACT Foster Foster and Foster yeah okay y as part of your agenda package y okay the actual yes yeah actual experience sty hold on Doug there all looking where should we be what page it's only two pages right yeah I don't have the book part I don't think I have Doug what page are you on uh it should be on the very first it's it's a two-page letter so it should be on the first page dated August 1st did you need that so just we just have the letter not the the valuation book booklet wasn't you didn't send that no okay that's just our older one that we have okay this is all he sent yeah can you do fire while we're reviewing it that works yeah I've got a question for I got a question for for Doug hey Doug are you there it's I yep hey how you doing um good how are you good so I see the state contribution you've estimated that and um typically we've been seeing historically it's been significantly higher like the last 3 or four years and I'm just saying is that just a comfortable number that you guys use or did you guys average that or aggregate or whatever the um uh we just used what came in last year okay all right there's some buffer typically like when the city does get a sticker shock if we lower the assumption that we do have the state money is available and it kind of softens the blow each time but um yeah so just that's kind of the flow and we've discussed later you know with City personnel that's true so anyway okay thank you answer the question that was kind of ties into my question how's the city going to react to that 5% increase they typically don't like getting a bigger bill yeah but it's the point to keep the fund On Target right and that's the balance that's why we do that cuz if the Market's underperforming you have to raise you have to lower the Assumption and just you can make it the backs side yeah Glide slope it used to be at 8 and we've slowly mered our way down so um so a full drop the seven looks like it's 900 G but if you half that is 450 and some of that estate money does soften the bugs it was higher I know Insurance Su premiums come up because 175 money the state money that's on that sheet is the state grants us for our plan I think a couple years in a row it's like or something some crazy an so wants to bring it down in steps I guess what I think I understand yeah there's a little bit saves us there but yeah typically they kind of don't like the are we experience study for this yes okay I was looking up on page six it says current and proposed far as city state contribution current 28.8 and then proposed was 26.385897 on the second Doug yeah you there from the police side we we if I read this correctly remember you know going blind here a little but in any event we were at 7.75 and we're trying to get down to 7.25 correct no you're at 7.4 right now yeah I guess we need more guidance on the actual letter then because the letter doesn't reference 7.4 it reference 7.75 where I see it experience review summary no now I I don't I'm sorry I'm not there I don't see it this is an August 1 letter from us I'm going over August 1 or 24 a different one for police oh I got a j July 29th 2021 you guys got the wrong no you guys I sent you de sent it out via email it's a two letter yeah doesn't have that I printed off the on that July 29th 2021 yeah that's the one I'm looking at yeah the one you're looking at too I think you're looking at A1 did I the wrong hey dou if you just bear with the PD side we're trying to I don't think we have the correct document all right let me yeah no worries yeah this is the one you're talking about yeah let me go ahead and send that that you guys right now email us did you get your just for the record uh Bill Stanley is now present okay thank you which 115 can be used for I'm just sending them another she what they s yeah the experience study we have shows July 29th 2021 no okay let me get you the right one somehow got it is 7% okay I'm sending to you guys now help8 I work for Bard for four and a half years before that so you got the right one right yeah we do yeah our numbers will be different but if you want to use like a stencil she just emailed it to us I just emailed it guys you joined when I became a resident so very oh yeah I can't get email perfect yeah it's a good it's a good place to uh to live it's a good place to work did this a few years ago when it was City Hall the city does have to Bud but man of this Concepts there mhm sces over finally a place where I can do itzy always comes in after they do their budget all right Doug we have it we're uh reviewing it now sure a sticker sh but if you do it [Music] before and [Music] should be ready to next year freedom I apologize yes I did I comes back to us here so sowh yeah each where would we go we should sell where would we go so off of four Street cell oh yeah two block and two two houses away he's a good guy what you looking at does a fire want to talk to Doug or anything while they're we got our questions answered we got the question answered okay so you guys you're good with with that all right hey Doug this is Joe Smith from the police side yeah hey sir the uh State contribution where does the projected annual payroll come from is that no I'm sorry um that's that's the payroll of the officers in the plan that's what the last budgeted payroll was or yeah okay relax Mone historically a city so we're looking at an increase of 995 and on our side and what's the usual look at like principal or whatever you own your house you basically refinance your house that's how P off so to make it house being money forever remember so the over is what we Finance as a city as un more amount years year Orly so if the market pays good then it helps us pay it down market doing so flip it around more of our cash and suspect the market is not going to do so good do great we get a break it's the weird Financial calculus that we deal with and a lot of from an from an ex perspective to it has to do with how many members are currently inred that you have pulling money out and how many contributions you have ping in as well we about the same as you guys it's almost identical what's that compared to what what did they have to do last year zero is this current that's proposed that's the difference that's we're already running these numbers here but what's this number usually look like um well if you last year it was like 5% the increase there's if you're making Market money you don't need to change anything this is ask for the change that's the shortage you need to make up to make the plan solvent according to bugs like wizard which is keeping a plan solid so you follow his reports how fast you get there is up to you does that make sense no I help than you City contribution is going to be up from what it was so they're up to kicking yes how you guys doing over there I'm ready I me talk to and make sure experience we do it every once in a while to catch capture that number yeah he's got the right page data points the next page down to M pay Doug for oh yeah that's I don't have any questions suggesting 4% it seem like the city would break out that's 900 grand plan we have it still pretty aggressive but Keeps Us in the right path I think that's a good plan but that's what I would propose prop i' make a motion on our side to do when you lower that assumption so you can have more money right to get the what you need anyway all right all right good yeah you're good you good yep ma' let Doug know you're good hey Doug we're good on the PD side okay um did you did you end up making a decision or do you need any other questions answered no I mean I we're just going to follow your uh recommendation um well yeah I heard you guys were chatting a little bit go tell me what um I let me re uh revisit it's it's standard to do a Glide path you know if you if you wanted to go to S all at once that's fine but this the city might you know you might hear something back uh so did you end up adopting some kind of a Glide path yeah I mean I'd have to be educated on that what is what's the recommendation for that I would say if you want a hard recommendation for me to to consider and kick around that you would lower from 7.4 to 7.2 with the 10124 valuation and 72 to7 with the 10125 that would be a phase in that that would be the Glide path and would give the city some advanced notice for budgeting okay right any opposition to that no so dog that would pretty much cut that 995 313 down in a half yeah okay not such a shot to them you still W be okay okay do I make a motion yeah I'll make a motion that we uh follow our advisor's advice and go from um 7 to 7 7.4 to 7.2 7.2 7.2 to 7. and then a later date which would be uh what was the date Doug 25 10125 7.0 the next day we go to 7 point0 7 point 72 to 7 point that's that yes second yeah 7 even a motion you made a motion I second it okay all in favor I okay on the fire side do we have a motion to accept um the actal recommendations yeah I have a motion accept actual uh recommendation going from 7.4 to 7.2 101 of 24 that correct and then another down to 7.0 by 101 of 25 second second second by Steve Lee all in favor um one last question Doug are you still there I'm here so market experience over the year if it improves miraculously and turned around and we saw big returns when does that start to smooth back in where we can increase the um the Assumption what would be the conditions there to increase the Assumption on the market rather than on your dropping Oh you mean to go back up from Seven exactly I would say never in in this current political environment with uh the reviewers in Tallahassee and the legislature I would say there's a very little chance that one once you go down you don't go back up okay thank you for your answer it's my best that's my best hch right now I think but I think it's right awesome thank you for experience and in your time absolutely thank you Doug thank you Doug thanks guys I appreciate it I look forward to seeing you in uh February yes sir February take care com ready for me okay good afternoon good to see you all on this very hot summer day hope you're all doing well um there are two books in front of you I'm going to start with your um quarterly review and then I'll give you a little context on what the other book is and as we move through the quarterly um but in each of your respective books just starting there on page three the top right Equity chart there that you can see on that top right of Page Three um our typical kind of equity performance chart you can see we've got bars to the right bars to the left really we had pretty mixed performance for the quarter um essentially what happened is you see the SNP is positive 4.3% that is your um kind of air related magnificent 7 technology names again um so we started the quarter in the position that some of the inflation reads were kind of coming in still a little higher than the Market's Comfort level and we actually had a pullback in April but that very popular kind of AI trade ended up carrying the quarter if you will and is what brought the S&P 500 positive that 4.3% um but to give you an idea um The Magnificent 7 were responsible for more than 100% of the S&P 500's returns so far in 2024 about 15% um only 27% of companies in the S&P actually beat the index that's just kind of how narrow theh have been um and just to give you a little further context there were only two sectors of the 11 sectors in the S&P that were positive that's technology and consu uh and excuse me Communications Services where kind of meta lives every other sector was negative so it was a very very narrow quarter and that's sort of what you're seeing in the mixed results there again the S&P positive on those techie AI related names mid and small caps negative within uh mid and small caps the only segments that were positive there were consumer staples and utilities so markets for the period end of June 30th still very concerned about kind of the inflation reads and obviously things have changed quite a bit so once we finish reviewing June 30 I'll catch you up a little bit uh but very narrow market performance again it was very much a story of whether or not you held the Magnificent 7 and and in what weights that determined how you did within domestic equity in overseas markets in the kind of yellow um you can see the all country was marginally positive about a percent most developed markets actually were slightly negative um you can see that Emerging Markets bar positive five that's really where a lot of the return from the all country came from you had country like China Taiwan and Singapore that had been down that really kind of bounced back quite a bit um so somewhat narrow leadership and again Emerging Markets being really the biggest piece of that slightly positive return we got from overseas markets and then within fixed income you can see the aggregate ever so slightly positive about 0.1% um we actually did see rates tick up a little bit through the quarter just on concerns that inflation was still not under control rates might be higher for longer but because because the Aggregates at about a 5% coupon you know the kind of increase in rates was offset by some income there so fixed income essentially flat um corporate credit did pull back a little bit which was a first corporate credit's been really hot the last few quarters um so again essentially flat within fixed income and then if we move in your books to page 10 on the bottom right chart there you can see what interest rates we're doing through the quarter and on that bottom right chart on page 10 we kind of started where the yellowy orange line is we finished where the blue line is so you can see the tick up there what you don't see in this graph is interest rates were pretty volatile so the 10year moved 50 basis points from anywhere from a 42 to a 47 through the quarter you can see we finished at about a 44 as of today the 10 Year's at about a 38 so situation has changed quite a bit as I mentioned um within interest rates since June 30th but that was the situation at the endend of the quarter we had ticked up just a little bit um which left us again essentially flat um within real estate um The Odyssey index was only slightly negative um I think we're starting to in general see a little bit of a settling down there um you'll see asb's marks were worse than that and I will kind of get into that as we get into um into the specific manager performance um but any questions on kind of the general economic Overview at at June 30 before we move into the pension okay so hearing none I will start with fire and just flip to page 13 which is our kind of line graph of growth of the fund going back 10 years um for fire looking at that line kind of the ending market value um for the quarter you can see you were just shy of about $18 million for the fund um about 17 m987 th000 kind of market value overall um with a 10-year return of about 6.8 so I think that stepping down will kind of um will gel very nicely for your plan um and then on the police side kind of same place page 13 line graph very similar asset value just a shade under 18 million at about 17, 86,000 um for each of your plans and again starting with fire on 14 just giving you an overall snapshot of where the assets were um fire you all were just just under 52% in domestic Equity um you are just shy of 16% in international Equity a little over 14% And domestic fixed income um just about 45% in global fixed real estate of about 11.7 and a little bit of cash just a couple percent of cash on hand as well um and kind of staying with fire there for a moment if you move to 19 where you can kind of better see your asset allocation ranges and where you are um you will notice that for each of your asset classes the triangles very comfortably within the gray shaded area meaning your current weight in each asset class is very comfortable within Target and pretty close to those black lines um so no recommendations for you fire for a rebalance um happy to see that real estate number ratcheting down we're not at that 15 we're kind of closer to 12 um to give you a little bit of an update since we submitted our full Redemption from ASB we've gotten about 23 3,000 back and that will be the same number for both plans U but I do think that will accelerate and as we get into manager performance I'll I'll kind of elaborate a little bit on that um police for you all just doing a highlevel asset allocation on 14 you all were 50% on the nose domestic Equity just a shade over 15% in international Equity about 16 and A2 in US fixed income about 4 and A2 in global fixed very similar uh real EST State waiting of just under 12 and then a couple per in cash as well um and for police kind of similar story if we go to 19 in your books um fire was very close to Target you all in several cases are right on top of your targets for domestic equity for international um you're really you know very comfortably within your policy parameters there as well so for both plans I'm uh very comfortable with where you are from an asset allocation standpoint um just kind of putting some numbers on the quarter um and I'll start with fire on 22 um we were slightly negative about a percent for the quarter um fire you are kind of high 11s per on the fiscal year um police for you all kind of same story you were down about a little more than 1% about 1.2% for the quarter um about 11% Slightly North of 11% on the fiscal year and again that having to do with slight differences in allocation fir is a little bit heavier in domestic equity which has been a very strong segment for the last few quarters but again down about a percent for both plans and about 11% or Slightly North of that for both funds on the fiscal year um looking in your individual segments um fire you all were just marginally negative within domestic Equity um the russle was positive about 3% as we mentioned on those mag seven kind of names um all spring that kind of all cap growth the fact that they do mid and small cap has been a drag so they did do over 6% for the quarter um but did not keep up with the index which was up more in line uh more like 8% um from a midcap growth standpoint you see Touchstone there down on the order of 7 1.5% the growth index was down more like three um again not being in technology some selection in healthcare and Industrials a bit of a drag um for that segment um your value segments did hold up a little better you can see Vanguard Equity income marginally negative there at the bottom a little more than half half a percent but did beat the value index which was down closer to two um some of their kind of dividend but techy names Qualcomm broadcom um some pharmaceutical makers held up a little bit better um on the Brandy Wine side though Brandy Wine was down about four some of their Industrials railroads like CSX Norfolk Southern having to navigate around the closure of that Baltimore Bridge was a little bit of a drag for them and a little bit of select energy was a drag as well um and then of course you all have the Vanguard extended Market index as well which is down on the order of about a little less than 3 and 12% there um police for the domestic Equity segment um you were down about 50 basis points and obviously kind of the manager commentary there uh very similar for both of you um International equity in both books on page 23 this segment was slightly negative for both of you on the order of about a half of a percent um on the europacific that more growth focused manager side you see again margin Ally negative about a quarter of a percent some of the big kind of consumer names that had been very popular pulled back a little bit on the growth side and then from a DFA standpoint on the value side you see that down about a half a percent um DFA has been overweight Japan by a handful of percent that worked out really well last quarter but they did kind of pull back a little bit this quarter um so that's kind of the sum of what was going on International Equity wise um within fixed income for both of your funds we were up about a half half of a percent um again the aggregate index was basically flat so for that Dodge and Cox fund um just good positioning on the yield curve and very select kind of corporate exposures doing well for you there um on the Pimco Global Bond side again marginally positive a little bit less than a percent um they've been very short and defensive that has helped them quite a bit um and then last but but least let's just say last but least um ASB on the real estate side so again you see the index seems to be settling down a little bit but then you see that almost ne8 there for ASB peeling that back a little bit um a lot of managers are kind of marking their properties they're hiring appraisers doing you know kind of comparable um pricing ASB is actually in the market right now with uh with almost all of their office and Retail assets so their goal over the next two years is to be rid of all of their office properties and all of their retail Properties by the end of 2025 so they actually took another 15% markdown on their office assets because they're literally marking those assets on kind of where transactions are going through and where they're getting offers so to give you a little bit of context on kind of how big this undertaking is they said right now at the end of the quarter June 30th they have 15 properties for $550 million that are actively being marketed nine of them are under contract for the second half of 20124 there will be another $550 million in property attempted to be sold and then in 2025 another 400 million in properties to be sold so they are literally in the market um transacting preparing to transact very actively it'll end up being about a third of the fund if they are able to sell all of those office and Retail assets so that's what you're seeing for ASB is they're actually marking based on transactions because they intend to sell here in the near term um what I think the good news for us is if they're able to do that we're out faster again if they're essentially going to liquidate a third of the portfolio over the next two years the faster we get our money the faster we can kind of move on uh but that's the deal behind that ASB number they are actively in the market with some of those urban office properties marking down where transactions are happening because they're intending to sell those in the near term um any questions on June 30th before we catch up a little bit on where we are today or at least as of last time I left uh the office as things are very Dynamic right now so in the interim I will pass out an update for you all these values are as of the end of the day Friday because I was not in the office um today but I can speak a little bit about uh what has happened where I think you probably are as well and if you all don't mind passing these are just your kind of interim market value updates through the end of the day so if we were just shy of $18 million really for both funds um as of 630th you can see we were at about 17.6 at the end of Friday um yesterday was a pretty strongly negative most day most indices were down on the order of about 3% we're up last time I checked about a percent percent and a half pretty well across the board um so things are definitely in flux right now um but that's where we were at the end of the day Friday essentially what has happened is on Friday we got some jobless numbers that were more adverse than expected and the unemployment rate went from 4.1 to 4.3% markets really kind of freaked out because um I think the the things have really been priced to Perfection meaning the FED will get inflation down and they'll kind of have this soft Landing where they get inflation back to manageable levels but they don't send us into a recession and when kind of these numbers came out on Friday I think there was this concern oh the fed's already laid and behind and we're headed into a recession and I think there was also some profit taking because markets have been very strong and and we really didn't even see a reaction to the assassination attempt of a presidential candidate we didn't see a reaction to the sitting president withdrawing from the race so I think kind of it all sort of hit the fan at the same time on Friday um and and you're seeing a little bit of everything concerns over recession concerns that the FED will be too late um a little bit of profit taking Etc um but to give you some context that the FED meets again mid-september September 17th and 18th markets were widely expecting a a cut at that meeting about 25 basis points now the probability is almost 100% that we'll get a half a percent cut um so that's kind of what's going on in the backdrop um I can tell you you know our diversification at least from a public asset standpoint is doing what we want it to do so since June 30th uh your Dodge and Cox fund is up 4% um because rates have come down your Global fixed fund is up almost 1% but we are seeing unwinding on the growth side some of those growth equities are down kind of 8 to 9% the value piece is holding up pretty well um Vanguard Equity income and Brandy Wine are down on the order of 1% so they're pretty well defending but those you know your all spring is down kind of 8 to 9% your touchdown stone is down kind of 6 to 7% those very growthy stocks that have been really the popular trade for a long time are kind of unwinding um and then for so long you know Nvidia was really the kind of darling of markets it's a name you hadn't heard for very long but recently it hit a $3 trillion valuation just between Friday and today Nvidia has been down anywhere from you know kind of 10 to 15% just to give you a magnitude of the moves that are kind of happening um but honestly this is not abnormal it's actually we've hit 30 new highs in the S&P this year with not a lot of volatility so some kind of pullback I do think is healthy I think if again we start to see the leadership broaden that's good for managers that's good for for kind of the health of the economy that these few names don't kind of continue to really Drive things there's a lot of value out there not just in those Amazon's apples Al alphabet meta you know there's a whole lot more kind of going on out there um so that's a little update to catch you up on where we are I certainly don't have a crystal ball I do wish I did but I will attempt to answer any questions that you all might have okay so hearing none there was another item in your packet that has to do with growth managers um so we've talked a lot about all spring the fact that they did you know kind of large cap midcap and small cap we've known that's been a performance headwind when these Mega caps have led the way um but since I've seen you last there was an an additional development which is that one of the portfolio managers Tom ogner is retiring um in pretty short order in the next couple months Tom's dad was the architect of the strategy and between that transition the fact that Wells had just been sold to all spring and it seems like there was kind of a retooling we have actually changed our opinion on that all straight growth strategy there's just kind of too much uncertainty for us now and so what I've brought you in the second book is some other growth managers that we follow that could potentially replace all spring um one thing that I'll tell you is again all spring was what we call all cap so they did you know Mega and large mid and small cap what I'm showing you are just large cap managers we don't have have a ton of kind of all cap growth managers on our roster but also you all have Touchstone that kind of covers that mid of the range growth stocks as well um so what you'll see is alls spring um as compared to a couple of other large cap growth managers and in that book just on the very front page you'll see there's three other candidates they're all mutual funds clearbridge MFS growth and Mainstay Winslow um just taking a look at fees all spring um that was about 75 basis points these are all cheaper than in that MFS the lowest at about 51 basis points and then main stay Windslow and clearbridge in the kind of 6466 basis point range for those three um these firms are all really large firms just kind of flipping to four um to give you a little bit more information about them um clearbridge is out of New York they've been around since 1962 um MFS out of Boston been around since 1924 um in Mainstay Winslow been around since 1992 um I will tell you the first two firms clearbridge and MFS manage quite a lot of strategies across different types of assets for Mainstay and this is kind of I'm looking in the bottom section kind of fourth from the bottom um Mainstay they are really a large cap growth shop that's about 94% of the assets that they manage where for MFS it's about 10 and for clearbridge it's it's about a quarter of the assets um they're all pretty large funds um clearbridge is about 46 billion MFS is about 62 billion Main Stays just shy of 30 billion and they're all bottom up managers so they're not kind of looking at macro themes or creating models they are truly looking kind of stock by stock sector by sector looking at competitors talking to management analyzing financial statements kind of trying to pick the best of the best um from a fundamental standpoint um all of them look to give you a couple of percent over the index after fees um as far as tracking eror clearbridge is going to be kind of 3 to 5% % um main stay kind of 4 to six MFS a little bit less than that kind of 1 to 2% um MFS going to be pretty diverse um and has pretty low issuer limits um kind of as compared to the other two uh but all within the realm of kind of your experience right now with all spring um just flipping to page five I'll give you a little bit of an idea about the management teams um and how the strategies are run um there are two decision makers for clearbridge um Mr bbau Miss vetrano um on the MFS growth strategy um Eric Fishman uh Brad Mack um and then there's a four-person committee for the Winslow team um all of them with kind of analysts and and other resources at their disposal as well um one of the things I'll kind of differentiators I'll point out to you on the bottom section of five is maximum position size because that's really kind of a risk management thing so clearbridge is going to be kind of plus or minus 5% of the index weight um MFS is going to limit themselves to to a 5% position weight or one and a half times the index um and Main stay is going to be a 5% issuer limit or Plus or or plus um or minus 2.5 on top of the index weight and why that's important is with this narrow leadership you should just know you know MFS has been essentially Li pretty limited um so has clearbridge main main stay if they wanted to hold eight or 10 or whatever percent of apple or Microsoft they've been able to do that which has been a little bit of an advantage just kind of something to know from a risk management and a performance standpoint um these are all very Diversified strategies kind of 40 to 50 um for clearbridge Mainstay and then MFS is going to be more than that hence that lower tracking error they're kind of 70 to 100 110 Holdings there um on the next page on six just a couple things I want to point out to you on this there's a lot of stats but I'll just hit a couple of them that very top row just shows you the number of Holdings for each of the strategies um the top row under characteristics um I do want to show you on the far right there you can see the Russell 1000 growth the weighted average market cap is about 490 billion um just to kind of show you you know MFS and Main stay are going to map pretty close to that you see all Springs roughly half of that that's that mid and small cap weights that they've done that have been out of favor and then clearbridge bigger than all spring but not quite as um as large and mega cap focused as that MFS in Mainstay and again not not super concerned about that because you all do have touchdown but those kind of style differences have played into to how performance has gone um making a brief stop on 11 just to show you how the Styles have mapped over time uh you can see the growth index is black and it's pretty obstructed by the strategies but it's very high right um so very large companies very high growth all the manager M pretty close to that um with the exception of all spring again which is a little bit below that with that again mid and small cap that they are able to do um on 13 just kind of rounding out the important part this is performance and this is net of fees um one thing we've talked a lot about that kind of bottom line is the Russell 1,000 growth and just the strength of that index because of the Magnificent Seven just to show you on a 10year basis I'm following that Russell 1,000 growth line all the way over you can see the index is ranked eth on a 10year basis 13th um on an 8-year basis 12th on a seven-year basis Etc so it's been very difficult to beat because of those few names that have made up such a large part of the index but I think just starting from the longest point in time which is a 10-year return and again these are net um you've got Mainstay then you've got MFS clear bridge and all spring on a on a 10e so main stay first on a 10e looking at a seven-year you've got again main stay first followed by MFS clearbridge and then um all spring and a 5ye you know similarly main stay 24th percentile M then MFS followed by clearbridge and then all spring um I like the Mainstay wind Windslow strategy quite a bit it's kind of a three-pronged approach where they look for um what they call kind of secular Growers momentum Growers and then cyclical Growers and they all kind of behave differently which results in in a very smooth defect a lot of growth managers are just kind of momentum they're kind of buying what's doing very well um but Main has got that kind of three-pronged approach which gives a little bit more of an all- weather experience um so I like that strategy quite a bit um there's also some uh forthcoming portfolio manager turnover at clearbridge um there's a portfolio manager that will transition off that strategy at the end of the year and they've got an analyst identified to take over and with MFS as well um Brad Mack joined that strategy because Paul Gordon retired for medical reasons so because of kind of really performance and um a pending piece M turnover and a recent PM turnover um I do like Mainstay Winslow for you all to replace that all spring growth strategy um and I know that's always a lot of information so I'm happy to to kind of take a breath and and answer any questions that you might have too what does PM mean portfolio manager um kind of the head honcho making those go or no-go decisions for buys and sells typically a lot of analysts will give input you know typically it's there's a team-based approach for idea sourcing but really the main role of that PM is to officially thumbs up or thumbs down moves you know buys and sells within that portfolio so main stay seems to be the only of the three that has a management team um the other two are two but again there's a change coming for clearbridge and there's a recent one that happened for MFS so I I always like the more the marrier especially if their performances there because all else equal you know if you lose one person on a four-person team that's different than if you lose one person on a two-person team um so to me that's I always like to see kind of the more the merrier there because that means it's less of an impact to you all if something changes if there's a one person change thank you my pleasure thank you Carri you said the performance uh on page 13 was inclusive of the fees it is it is net yeah because they're all mutual funds that's exactly correct those are net of fees who are we replacing all spring growth which is kind of your um technically allat growth manager um but they're called all spring growth you might have recognized them as Wells Fargo the name changed over the last couple of years because that Asset Management shop was taken private by are we talking about moving our entire Wells Fargo yes yes because of the fact that 2.7 million yes because of the change of Tom agner's retirement which is actually coming pretty quickly too they didn't give kind of six months to a year which you typically see they gave a couple months um so that kind of combined with the Performance challenges and then the integration into the private Equity Group caused us to change our mind it's just too much change and uncertainty for us to to stick with is it better to move the 2.7 all to one firm rather than split it up with two firms because of the way your domestic Equity is now you've got a few different buckets there um I personally wouldn't split it but there's nothing against that you certainly could if if you felt better about that approach you certainly could how much does the going from the 75 to 64 does that affect um how much does that affect the the budget and all that so you with a mutual fund you get the net returns you don't actually kind of physically write a check for those fees it's just you can know as a fiduciary that you're paying less but you actually don't see the fee payment process um we're being good fiduciaries by saying we like this fund a lot and know by the way it's also cheaper they do them quarterly is that correct the fees are done on the mutual fund company side so we actually don't see that process that's not a hard invoice that we get and we don't write a check they basically they give us their net performance if they make $10 for the quarter and 150 of that that as their expenses they pass us the 8850 but they have to tell us what their fees are and that's kind of what we show you K there is a huge difference between um if I take a look at on page four the assets under management for um Main St compared to the other ones listed and the MFS growth fund has significantly stronger assets under management what do you attribute that to um so Mainstay really is just a growth kind of shop that's really what they do MFS is in everything fixed income um overseas equities it's a very old kind of well-known shop this is just a part of what they do where that Mainstay winds load that's just a growth kind of large cap growth shop really that's what they do so I would say Main Stays a little more B bouquey where MFS does truly everything fixed income International equities I think they even do emerging you know dividend Focus equities on the value side they do growth all the way you know large mid and small MFS is really kind of everywhere so we need a motion to move this Mone yes if you agree with the recommendation that's right it would be a motion to uh 100% replace all spring growth with u main State Winslow if you agree with that recommendation don't move motion accepted I'll make a motion to accept the okay change second second there you go second second okay I I I questions no I just say from a fiduciary perspective uh you know main main stay is the second cheapest but the top reformer so I I tend to concur with the [Music] agreement motion to accept I do that every day here's recommendation here's recommendation for main State main State Winslow to replace all of all spring that's right yes okay I'll make a motion second second by Dean Dean second by Dean all in favor very good I'll get you a letter for that yes yes yes I'll I'll email you letters for that other thing is when when you get these um reports that you sent me on quarterly reports yes how soon can you get Foster and Foster so the gentleman's people so I have been trying to send it to them when I send them to you um and that's what I've done I know I did it this time and I think last time too I'm trying to kind of do it at the same time at the same yeah so that they get it in their hands when you get it in your hands okay is there any chance of you have it before you print the book They're generated because of ASB right now about 30 days after quarter end um yeah hopefully in the future that may change as the portfolio evolves and we move away from them but yeah but for it to be complete and final it's about 30 days after okay yeah cuz this is June 30th AUST haven't gotten anything yet from from Foster you mean okay I can tell you they acknowledged the book this time when I sent it they did um I actually full disclosure forgot to send them to to them when I sent it to you and then I caught myself that same day and they did acknowledge cuz I've been trying to email it to you and CC them to knock out the two birds with one stone but I can tell you they did acknowledge the receipt okay yeah kri I also have another question on page on page 55 is our compliance checklist and I noticed in some areas we did not pass um and honestly that's it's pretty standard that some of those will be read like so for example um for the three-year obviously because of the challenging markets we're not hitting the return assumption and things like that um but let me know Michelle is there anything in particular that you want to to home in on let me see no I just wanted it noted also for the minute so that we discussed it and are aware of aware of that check yes so I think the narrowness and Equity markets has been a challenge overall if you're not indexing I think that will change I really do um meeting the Assumption you know the three-year number has been really tough being down in the in the mid teens that has really hurt us from that standpoint um from a rank standpoint our 15% rate to real estate has hurt us we're working on it um so we are taking steps for all of those um and we did obviously terminate all uh all spring um but yeah that's kind of a high level summary of what's going on back there and that's really all that I had Debbie do you want me to to speak to the um oh yes about some of the yeah and I might be taking Pedro's Thunder but I feel like twice is may be better than um is better than one I don't know um but the the um Department of Management Services is doing their police and fire pension trustees conference November 13th through the 15th um there's no charge for the conference itself it would just be kind of travel and lodging for you all and it's in Daytona Beach Shores um so that's November 13 to the 15 it's specific to Chapters 175 and 185 um so it's very much tailored towards police and fire plans that's November 13 to 15 um at The Shores Resort um in Daytona Beach Shores and then fppta their um upcoming uh fall conference is September 23rd through the 25th as well and I need to check my location on that if anybody wants more information um but the fppta uh fall conference is also in in late September it's Hilton Bonnet Creek looks like is it sometimes they go to Jacksonville I was second guessing myself sometimes that one is in Pon aidra but I I didn't want to speak before I kind of checked that but that sounds right I think it is in Bon Creek this year this one usually we always go to the the partment one yeah the one they told this year you going to send all these out to us yes I'll go ahead and get them um I'll go up on the thing and send it to you I'll try to send again too I do have the flyer for DMS I'll try to send that to you as I sit in the audience okay okay question Tommy yeah since there's a lot of saber rattling in the Middle East does your firm have an opinion on what the markets will do if that gets serious yeah so obviously um any type of military intervention or escalation um is going to be bad for Equity markets um oil prices would likely kind of go up and it just kind of you know probably would cause some pullback from really kind of global investment as well um that's kind of high level what I would say and I'd be happy to look for some other pieces for you as well but I think you know watching Energy prices watching um you know Equity markets would very likely tumble um and I think you'd see a pullback in in kind of global Equity investment as well thank you y and I'm crossing my fingers that does not happen but yeah thank you thank you thank you okay thank you ped are you there yes I'm here all righty I think you're up okay um good afternoon everybody hope uh hope everybody's doing well and winding down summer uh just a couple of things to go over with you uh first you part of your agenda package and the agenda is listed as annual rate increas this is something that we just put on the agenda H because we didn't if you guys had really looked at this in the past and when we were talking about that with Debbie uh we didn't think so so um if you guys recall when when we took over for uh Christensen and Diner um we we essentially just you assigned the same contract and so we had the same contract uh that that they had for for many years um and built into that contract um is an annual 4% increase uh which which in this instance equates to an $188 uh increase so um we just wanted to to make sure obviously that that everybody was aware of that um and and obviously it's disclosed and it has been disclosed but but we just wanted to make sure that that we we spoke about it in case in case you it wasn't something that was known so there's no there's no action required but but it was just more informational from from our end just to just to honestly just to have full transparency with the and we want to make sure everybody's on the same page okay okay okay um the the next item on the agenda um and and this is really just for the uh police plan but um there is a pending disability application for for uh M Works wer TZ um and the his independent medical exam has been scheduled for tomorrow August 7th um so once that's completed uh the phys will provide us with their report it usually takes about two weeks 10 days two weeks or so to get that so once we have that um will be in a position to to put everything together the and informal hearing and I say an informal hearing it's a bit of a Mis it doesn't mean or final it's really just to differentiate or distinguish from a formal administrative hearing which is very similar to a trial setting right there's there's a court reporter present uh the board would would hire a special counsel uh because again I'm I'm the board's attorney so so I would be conflicted from advising you all with the S to the judge and the jury um from advising you on on the law and procedure two process uh and evidentiary standards Etc and then also taking an advocacy position right arguing one way as to why you should deny the benefit let's say that positions taken so you can see hearing it's a lot a lot takes a lot longer to get it on the books right just to schedule these things and have these depositions and so on and so forth and get everybody's Cal so we try and address it first through an informal hearing uh really just to expedite and and and be more more efficient you know just really cost uh cost Our member less money and ultimately obviously the board less money so um at that point I mean we could wait until your next meeting uh which I believe is in December uh but I I you know I would suggest that that maybe if the board is a meeting to call a special meeting um obviously this would just be with the police board but to call a special meeting with with just just one item just the disability application hearing on the agenda um or or you know obviously we can we can wait and have it in conjunction with um our next quarterly meeting in in December but but I'll I'll leave that up to the board and everybody's schedules uh I'll just speak for myself I'm going to be at of pocket September 29th through December 12th um okay and what date range would you expect like a uh you said what was the date in September you out 29th I leave on the 28th okay okay okay so I mean ideally um if we could if the rest of the board is able um I think we should have everything ready by the end of August so if we could maybe schedule something um you know in in those first I guess three weeks of September uh when you're when you're available or when you're in town that I think would be best um simply because you know our member is entitled to a full board they can obviously wave that right uh but if we can get it done um I'm sure you be there I'm sure the board would like to be there so that would be my suggestion but again obviously if we if if we can't get it done if if the if the schedules don't allow for it then we'll we'll try and work on another date but if if the board is okay if the board is agreeable um then maybe what we can do is uh we would once we get the report from uh our from The Physician um we'll give you a timeline in terms of when we can get the binders together the electronic binders with all the documents and everything uh but again usually you know give give us about a week or two to get that together but um so we should be we should be ready to go by the end of this month um if not maybe you know a little bit sooner but um we can work then with uh with Debbie on on getting some dates that work for everybody so Chris is not going to be there forly meeting either so um it would be a special meeting before the December 4th meeting um have it with the December 4th meeting or have it at some point after December meeting when is available any thoughts what day for you at September 29th through uh December 12th need to change the date of the December meeting no no no no we're talking no I think I think if we can schedule a special meeting at some point you know the first couple weeks of September I think we have three weeks about just about three weeks in September yeah I mean that would that would be my suggestion but but obviously you know it's up to everybody else not not my to do it first to do just this meting first yeah if we could push it the first I know some of it's out of your control but uh the first two weeks of September knocked that out um because realistically it's I'll need you know I might be out of pocket before the September 28th date and after by a week sure sure sure sure so so let's let's shoot for that um let's shoot for those dates uh Debbie I guess if you could maybe start working on some dates with the board that work in those first two weeks of September okay um and then uh and then just I guess let me know uh and then we'll we'll kind of go from there we'll coordinate with uh with our M um and and kind of work backwards from from some of the dates that that would work okay that sounds good okay okay perfect excellent um okay great hold on Pedro what did you say Joe that Pedro will be here for you GNA be in person Pedro yes ma'am okay yes yeah I I said an to Debbie but I think I think it was it was a it was a male trustee that asked the question so no you're fine thank [Laughter] you okay um just to make sure I got my pronouns correct um the lastly no no no nothing new to report on the legislative front um no no changes obviously uh as of as of now um session you know starts uh coming up in in uh in December or rather just after Thanksgiving they they open up the pre-filing that uh session for for folks to start filing bills so we'll see uh we'll see what comes down to Pike we'll have a better idea by your December meeting in terms of kind of what's going to be out there um I have heard just just I guess you as as a side not I have heard uh that the FRS bill um seeking to um seeking to increase uh the or put back the cola rather to reimplement hey Pedro Pedro unfortunately you're breaking up we can hardly hear you exactly sorry it's okay sorry about that can you is this better yes yes okay sorry about that we got we just need like the the last minute about uh when FRS uh reintroducing uh the percent or the uh Cola talk and then we lost you after that yeah sorry about that so so no that's that was really it that that I haven't heard of anything else that's going to be filed that's the only thing that I have heard that will be filed is the is the bill where where they're going to try and put back that Cola certain F FRS members uh but other than than that nothing nothing new on the legislative front okay we'll have a better idea by uh by December 4th we'll have we'll have a better idea in terms of what's what's going to be out there okay okay um and then lastly uh I know the our summary plan description uh is going to come up at the end of the this calendar year in December so um we'll look to update it for your for your December meeting we'll we'll we'll have it updated the only thing I would ask and I'm not certain if I I I was looking earlier I don't think I do if if are you guys is are either the police or the fire is anybody in negotiations now or or are you guys going to enter negotiations at some point between now and then fire is I'll speak for police we are currently the CBA is currently in negotiations fire okay okay and fire as well and and fire is is also or fire is done yes fire is currently under contract negotiations we're still open oh okay you guys you guys aren't up yet okay um so uh two things I guess if if can can someone send me the most recent firefighter collected bargaining agreement just to make sure that I have that um and then if if the police one um is settled and ratified uh if somebody could send me that whenever that's whenever that's done and then we'll update the SPD and we'll have it for your December meeting sure just for a point of clarification because we're dealing with a network issue fire is up they're still in negotiation so police and fire are still actively negotiating I'm sorry I'm sorry I misunderstood okay okay then then if if you could just send me um you know whenever the fire Andor the police are are finalized and ratified yes sir if if those could be sent over to me and then I'll just update the SPD accordingly and we'll we'll have it for your December meeting okay okay yes sir he I also notice that the custodian needs to be changed and the consultant needs to be changed and also some of the uh investment managers might have to be changed yeah yeah we'll we'll update we'll update all the service providers and and some of the other just some of the other language that that's been updated since uh so you know some of the some of the mandatory distribution language and and and uh Internal Revenue code limits uh we'll update all that uh but if there's any changes to the benefits that's that's where the CBA would would help us okay all right also the Board of Trustees will have to be changed because there's uh some members on here that are no longer right Y and and we'll have we'll have we'll have Doug prepare the uh the Actuarial fact sheet it's it's really just kind of a summary a snapshot uh of the plan um as of that date so so we'll we'll get that uh as well from from Doug okay okay perfect um then that's that's it that's really all we we have oh I'm sorry no last thing I wanted to just touch on again not action item but uh just to check in um your financial disclosure forms those form ones uh they were due July 1st you definitely don't have to tell me now if you did not file them uh but um we really want to make sure to get those done if we have not uh and I'm happy to help if you know we can we can talk offline or at some point but just to make sure everybody gets those uh gets those filed absolutely at the latest by the end of August because uh as of September one historically that's when the state will or the ethics commission will will will impose Their fines um so we really want to make sure if we haven't gotten it in to get it in by the end of the month and recall this is this is where there was a change this year where where we had to file through the portal through the uh through the ethics website essentially yes sir y much easier okay okay and that really concludes my report all right we appreciate your time yes sir absolutely thank you guys thank you anything on the police side yeah do we want to change our meeting on the fourth since you aren't going to be here uh yeah let me look at the calendar we have to have one in we have to have it for qu meeting so we still SE one but we still have a we have a a quum we have enough I yeah no we'll keep it that way that will get us our for the four year four quarters I mean if if we push it one week he'll be back well late week like 19th or like December 19th would that work we'll need to check with the others as well I I let if we change it let me check with uh Pedro secretary make sure that he's available things go then right now we'll keep it on the fourth but if it changes I'll let everybody know i' say keep it on the fourth for now yeah yeah cuz I'm going to kind of have to reintegrate and okay get right and Steve I'll send you a form one no you got to do it online yes to do it send me the link justtin through it we need a link or just you just pull up well I'm going to have to get with um the city clerk to get him on that link okay so I'll text I'll email her so you get on that link to so you can do your thing and then Brian's got to do his at one is it possible I did this last time I was on on the I don't even know what this is it's the same it's the same thing except they're doing it by U computer now okay I'll to do it to yeah it's annual so do it every year Justin's familiar with it too as well all right okay anybody else got any [Music] questions second all favor fav thank you motion to by Steve right everybody sir