##VIDEO ID:4ITg7QGuE7Q## e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e underweight at the expense of being overweight cash and high yield bonds are a little bit overweight because of the prospect of falling rates which makes bonds go up so any comments on the positioning no so we go on to the performance on page four this is as of June 30th the latest quarter is 1.61 % equities return 1.7 why so low April was a bad bad month stock market pulled back 4% because inflation was bad and it caused the FED to talk about fewer interest rate Cuts May came along and went up about five so between April and May the market pretty much broke even and June large cap stocks did well but small cap and midcap did poor poorly they were down 1% so you add those three months together and you end up with 1.71 also the convertible bonds are in that 1.7% number because we count convertible bonds as stocks because they're a hybrid um taxable bonds which are the high yield bonds return 1.93% because um of the fact that they tend to behave like stocks high yield bonds do so because stocks went in general went up a little bit in the second quarter high yield bonds followed because they have an equity-like component to them and then cash return 042 year-to date which is the fiscal year-to date number the account is up 20.6 six% this is good news because we're making up lost ground that we lost in 2022 so so from September all the way through through June I we and the numbers are still out for August I mean July August and September 20.6 six and that's three quarters of the way through the fiscal year that's a good number that's the equities that's not the bonds and I'll let bersus Chambers give you the total return in a minute if you look back five years the equity portion was 10.48% per year that's outstanding it's rare that you see equities give View 10.48 and that's a lot of that is technology stocks tech stocks make up over 30% of the S&P 500 Index so it's technology stocks that are driving it if you pulled out the 10 10 largest companies in the S&P 500 the total return of the stock market would be much much lower the top 10 largest are driving it the other 490 or not they're okay they're up this year but not they we would not be up nearly as much if it wasn't for you know Google Nvidia Microsoft Eli Lily maybe Tesla um JP Morgan um even Walmart so um having said that any questions on the performance question no and then page five is just simply the July numbers that I put in there for information and you can see the latest quarter jumped instead of being 1.6 the latest quarter is 8.28 so the market recovered some in July um small cap and midcap jumped up and equities over the last three months ending July is 9.45 what a difference one month can make so having said that if we turn over to page seven just a snapshot of the equities uh you can see where the income that it throws off is $ 29,7 188 it says 75% stocks but it's not that high because this is just the stock portion if you put in Saw Grass uh the equities are right at 70 I can go up to 75 I can't go over that by the policy so in in July I did sell 3% of equities because we did hit 75 I sold 3% of equities and I gave it to sass so that's part of what I do is keep the fund in line with the policy um page eight is just a snapshot of the funds that we use they're index funds they're low cost if not no cost funds page nine is the two more of the index funds um and then page 10 is a snapshot of the Sass account which is um because we are the custodian I show this so just to let you know that your assets are held not at Capitol City Bank it's against the law for us to hold them by law it has to be an outside custodian so they're held at Reliance so but so we are the custodian of the assets and that's the custodian's report um any questions that concludes my comments any questions you can't argue with results yeah it's good results It's Been a Good Year thank you do we have a motion to approve some Mo we approve capital city second motion is second all in favor I any opposition thank you on to the BCA report ver Chambers good afternoon Mitchell Brennen with BCA here in for merges and so I'd like to go over just a quick handout it's got a little bit of data since quarter in um but really goes over the trend of the market and so we'll start on page two of that chart looks like this right here and so uh really start 2024 the continuation of 2023 where we saw dway Point really very topheavy stock market where the Magnificent Seven is what they're titled so that's Nidia meta which is Facebook's parent company Microsoft Amazon Apple alphabet Google parent company and Tesla those seven names have continued to lead markets higher so for the first six months of the year uh they were the primary source of returns for the market this chart on the left hand side is actually through the end of July uh which you can see that green line that sharp downturn so after quarter in we started to see a little bit of a reversal where those seven names took a back seat and pulled back uh anywhere from 10 to 30% uh in the month of July in some areas that really haven't participated in the market rally for the past couple years small cap large cap value started out for form in July um but through the end of July you can see Year date those seven names are up on average 29% contributing over 50% of the total return of the s&p500 so the other 493 companies on average up just 7% if you go to the next page to my point page three here these are the returns uh quarter to date through Friday and so you'll see what I've highlighted in green down the quarter to date column so that's July 1 through Friday uh the Russell 2000 which is the index for small caps and the Russell 1000 value which is the index for for large cap value uh pretty good so far quarter to eight compare that to what's highlighted in Gray right between them the Russell 1000 growth that's large cap growth up just 1% through uh through Friday quarter to dat and if you go all the way to the far right column you can see what I mentioned as far as not really participating or participating to the same extent as large cap growth on a three-year basis small cap up just shy of 5% annually for the past three years that was actually at quarter so at June 30 that was actually a negative number and then Russell 1000 value large cap value from an absolute standpoint 22 and a half% is great returns but look just above that you'll see the Russell 1000 growth large cap growth up 32% annualized so nearly 10% out performance on an anual basis over the past three years again contributed almost entirely to those large cap Tech Communications grow names in the magn and so outside of that what's moved markets has really been inflation and then inflation has indicated where the FED will go with interest rates so on the next page page four uh this is a chart showing the trend of inflation going back to early 2021 through uh June of 2024 and so you'll see the trend uh the peak in June of 22 at just over 9% subsequently falling to June of 23 to 3% and then really for the past year been bouncing between that three and 4% range uh we finished June of 24 back down at 3% and our house view has been you know the FED is not really going to be in a position to start cutting rates until we break through that 3% threshold their target is still 2% fortunately we just got the July numbers in and CPI year-over-year was 2.9 so we finally broke through and now the probability for the FED cutting rates in September is it as close to 100% as you can get um now the the real talk you go to the next page is will we see just a quarter per cut will we see a 50% uh 50 uh basis point so half a percent cut uh before the end of the year and so the fed's expectation is just one cut currently uh the market expects potentially two before the end of the year and then if you go to the next page this is just a closer snapshot of those expectations uh you can see one rate cut this year for the fed that's the blue dotted line and then four rate Cuts in 25 and 26 bringing rates from over 5% back down to that 3% range over the next two years now the Market's a little more aggressive quicker gets to the same point in 2026 right around 3% but again the Market's expecting two to three Cuts this year uh before the end of the year and then an additional four Cuts next year so uh our view is the the FED is going to be slow and methodical uh unless we see a potential recession or severe economic crisis that Spurs them to act more aggressively and cut rates quicker but U so far earnings have been strong consumer spending has been strong the labor market despite some mixed reports recently has been strong and so with that it seems like we may be in line for a soft Landing where we avoid a recession or certainly a deep recession on the next page um speaking of jobs uh reports on page seven this is one signal indicator for markets that's predicted uh the last 12 recessions going back to 1947 it's called the Som R and uh it's a lot of data here but essentially all it's showing is the Som roll gets triggered when there's an acceleration in the unemployment rate so when the average of the last three months employment rate gets half a percent above the lowest point over the past year it triggers this s Rule and again just indicates that there's an acceleration which historically has predicted a recession on the horizon now I'll caveat this you know that 12 for 12 sounds great I played baseball I would have loved to go 12 for 12 um but we have other signals like the inverted yield curve that have that same track track record and we've been in an inverted yield curve since July of 22 and have not been in a recession so the the famous saying is you know it's different this time so far that's been the case but uh you know the more red flags that get raised in predicting a oncoming recession the more worrisome we get and so that's that's why obviously the conservative positioning from Dwayne as markets get higher and higher uh it's it's easier for them to come back down and so um with that being said again we're still seeing very strong consumer expenditures uh very strong Growth Company earnings continue to be strong unemployment is at 4.3% uh the fed's Mandate for Full Employment says it can tick up all the way up to 5% so we're still under that threshold so again uh in terms of of that data still a very strong labor market that we're currently and then lastly on page eight uh couldn't go without talking about obviously the election coming up and how that impacts markets um so historically what we've seen is going into an election there's volatility because of the uncertainty uh and then post election with that certainty in place a new admin ation or current Administration uh continuing that certainty typically leads to markets going higher so going back to the mid-40s every presidential election on average uh the market is up close to 10% for the following year after an election uh now the views of individuals and voters may change this chart here is very interesting it shows how Republicans and Democrats view the economy during different administrations and to No Surprise here when a Republicans in office Republicans tend to think the economy is better than Democrats do and vice versa so I don't expect that to change but from a historical standpoint it really hasn't mattered who's been in power in terms of how markets perform and so if you look at the past three administrations the Biden Trump and Obama administrations over their ten years on average low to mid double digit Returns the outlier there is obviously the Bush Administration a negative return over that 10 year but keep in mind that incorporates uh 911 as well as a great financial crisis in 2008 so looking at those two outlier events put those aside historically you know no matter which party you're in you want to see a strong economy and a strong market and so uh we hope that whichever Administration goes into place they'll enact uh legislation and a plan to keep the market strong in the economy along so with that I'll conclude that handout and jump to our report unless you have any questions or you want to discuss so just briefly I don't have anything okay thank you go ahead yeah yeah yeah so briefly on on page four of our report uh the news that you've been waiting for another fantastic quarter um this is probably one of the best quarters I've seen for our clients up 184,000 which was the equivalent of one and a half% return ahead of your strategic model which is at 1.4% and ranked you in the top 26 percentile of other public Pension funds across the country led by your large cap Index Fund up 4.3% followed by high yield which was up 1.4% and then your Global infrastructure manager up 1.3% uh the next bullet there fiscal year date so three quarters of the way through your fiscal year 1.9 million in investment gains good for a 16.6% return did Trail The Benchmark there some of the active managers and convertibles under perform their benchmarks uh but besides that ranked in the top 16 percentile of other public Pension funds across the country on a one-year basis 1.4 million in investment gains good for an 11.9% return and the best performers over the past 12 months again large cap leading the way up nearly 25% followed by midcap up nearly 177% and then your International manager American fund Juro Pacific up just over 11% on a fiveyear basis 4.2 million in investment gains good for a 7.3% return annualized ahead of your benchmark and then for the past decade 7.1 million in investment gains good for a 6.2% return on an annual Anis if we flip to page seven of this highlight here these are some of the numbers I went over uh but since quarter in so pulled some current market values through yesterday and uh it looks like the plan and I'm not sure if this includes um State monies uh being deposited but since the end of the quarter you finished June 30 at just over 13 million you're now at 13,528 th000 so roughly 450,000 increase in the account between investment gains and deposit so uh continuing a very strong fisc year uh hopefully we can keep that through the end of August and September um September typically tends to be a pretty volatile month uh but hopefully we can capture that and your fiscal year-to date return remain in that 16 to 17% and recover you know most of if not all of the losses we experienc and then with that flipping over to page 11 again these are all the individual uh Securities and how they perform at the very top your total funds and what you see in parentheses is the ranking versus other public Pension funds across the country and so again Rec as of recently for the past year and more current very strong performance uh especially coming out of to so with that we we uh don't have any concerns or issues with any of the Investments or the asset allocation our one consideration um is you know as rates start to come down we may want to start to rebalance some of that cash back into bonds and take advantage of that Bond rally uh but to Dwayne's point right now you're getting over 5% in cash so it's really a pseudo Bond having that um that kind of yield in cash right now um but should we start to see the FED cutting rates we will start to generate pretty strong returns and bonds and so we can take advantage of rebalancing into bonds uh periodically taking advantage of the high interest rates right now and lower interest rates increasing the market value of those long so that's the one consideration that uh that we have out there and other than that you the numbers speak for themselves Dwayne's done a fantastic job so very happy with the performance and uh you know closing out hopefully a very strong F that I said a lot so conclude my report open it up to anything like talk Mr any questions me okay okay great thank you do we have a motion to approve the report as presented motion to accept the BCA report is presented second motion is second all in favor I I any opposition thank you on to clausner Koffman Jensen levenson and AA Parish hi everybody um I have nothing to report um on my legal end just wanted to make a note that our office will be at the division of retirement um that is happening in November in Dayton I'm shair Kyle will talk to you about those dates um so hopefully we'll see some of you there if you're able to attend and I'm happy to answer any questions if there are any I don't think anybody has any questions thank you thank you Resource Centers Kyle tinle yes welcome to all the trustees and so nice to meet service providers pleased to be here um unfortunately I didn't pull out of your packets the meeting dates for the schedule I'm going to have this check with the city first before I publish it and I'll bring it back the next meeting for us so our next meeting is in December so I will bring that back at that time um I do have in the packet the premium tax distribution from this year versus last year last year 2022 9,3 up to 113 2865 so was glad to see that conference list we put in your packet on both sides these are some Regional ones the Georgia one but I do have the handout for the 53rd annual police and firefighters conference with Jona November I have the itinerary if anyone is interested in I can them out after the meeting our finance group and my company puts together these un audited dou sharing that positions the income and balance statements and I wanted to show you how they put them in the packet so you get familiar with seeing it this is up to the June 30 June 30th so that is in there just for your information nothing has to be approved you have any questions on any of the numbers please let me know the conference attendance is a little different in the past the city had a credit card um to pay for the rooms we don't have a credit card to pay for the room we ask that you pay hold the room with your own credit card we will pay it with the taxfree tax exempt certificate and the hotel will all be prepaid by the time you get there so there are no issues they just hold it for incidentals but everything is prepaid in advance there's a travel Advance available for you if you like if not you can turn in the paperwork after the conference and you will reimburse anyone's interested let I'm actually looking at the November one since it's so close in Daytona yes that's any questions question I do I I know you've pulled you're pulling the dates for the meetings yes but I do just want to throw this out there I am in the drop and in my last year of drop so the May 27th meeting will be my absolute last so whatever we need to do to start getting whether I need to post something whether we need to do an election or however we have to do that I need to know how to go forward with that as soon as possible thank you any questions Mr thank you the expenditure the expenditures in your P you have a motion to approve the quarterly expenditures motion we accept the quarterly expend expenditures as provided second motion and a double second a second all in favor I I any opposition thank you I'm going to open the floor to public comments is there anybody here for public comments seeing none we close public comments are the business meeting dates that's coming in the near future in December as this T addition it every 26 [Music] employes people re employes anyone's interested in some information Pion thank you any other comments questions from okay with that do we have a motion to weour thank you everyone --------- ##VIDEO ID:emLYo93WTIU## e e this is a test of the city of Paca audio system e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e call a meeting to order at 10:04 we'll do a roll call here here here all right has everyone reviewed the minutes from our last meeting I make motion second that motion we're good all right good morning on to Capitol City with Mr madron Good can everybody hear meity [Music] comments the first page in which says policy review isnap of fund as of August 14 there are ranges that I am supposed to stay within and all of the investment percentages of total market value are within the range of the policy you can see where large cap equities is a little bitow 40% about a month ago I trimmed equities back 3% becausei expensive and Mr chair I do apologize does he have his microphone on I'm not seeing any captions on my end okay hello can you hear me is that better is is the light on on your microphone yes the blue light is on thank you okay I'll back up a little bit Dwayne madin Capital City Trust Company Tallahassee we're going over the policy review on the first page of the report and I was saying that I trimmed Equity um about a month ago back 3% because the total fund was bumping its head on the policy cap for equities which I believe is 75% um currently is 70 so um in addition to that International is a little bit underweight at the expense of being overweight in US equities which is what we prefer we are we have a home country bias and believe that there's plenty of great opportunities in the US and you don't need to um load up on International so we're usually underweight International unless the dollar is weak or economic growth in other countries is strong um small cap is a little bit underweight the policy percentage because small cap has lower Quality Companies in it and during tough Economic Times small companies don't do as well as large companies so that's why small cap is underweight just a bit midcap is a a sweet spot in the stock market where companies are starting to get up on their own TW feet run like FedEx is an example um and so that's equal weight um private real estate is pretty much equal weight infrastructure is pretty much equal weight convertible bonds are equal weight and bonds are starting to be a little bit overweight because they're inexpensive and the yields are attractive so when I did trim equities I gave the money to Saw Grass so they could put it into bonds so that's why you see bonds a little bit higher than the policy percentage and then high yield bonds because they tend to behave like equities are equal weight um and also because rates may drop which would help high yield bonds any questions on the uh on the on the policy review by the way cash is paying 5.1% you can see where we're holding 6% in cash that's sort of high but I don't mind holding cash when it's yielding that high it's yielding almost as much as a bond so having said that uh if we turn to account performance two pages over there's a green pie chart page four we can look at the latest quarter ending June 30 total fund return 1.62 Equity return 1.72 that includes convertible bonds in that Equity number um it was a a quarter that was sort of um indicative of technology stocks doing quite well due to artificial intelligence uh helping earnings growth in addition economic growth was a little bit better than people expected and consumer spending was strong although some of the consumer spending is coming from credit card debt which is becoming somewhat of a concern as it goes up and delinquent delinquencies start to rise but it hasn't been a disaster yet so the consumer which drives two-thirds of our economy is still strong um and they're spending and as long as they're spending the economy does well unemployment is reasonable it's it isn't too high it isn't too low it's about where the FED wants it so it's almost at full employment so that's a good thing uh year-to date uh fiscal year-to dat the fund is up 21% which is outstanding Equity part fiscal year to date is up 23.4 bonds which are high yield bonds are up 9.6 and cash is up 2.9 so we bounced back a lot from what we lost in 2022 um and so that's that's good um each of the LA each of the each of the last three years um the fund return 4% each of the Last 5 Years 10.3 per year and since Inception 5.93 so this that that's the equity portion that I managed not it doesn't include Saw Grass so having said that is there are there any questions if not just for information purposes on page five I included the July returns you can see the latest quarter jumped quite a bit from 1.62 to 8.38 because July was a good month and August is going to be a decent month I think so we turn over to the asset allocation on page seven there's two separate pages I won't go over a lot of it because it's sort of informational but um the equity part that we manage is 77% equities bonds are 13.9 which is the high yield and cash is eight but that is not the total fund the total fund has 70 approximately 70% Equity if you count the real estate and the infrastructure and the convertible bonds and if you see page eight you can see the funds that we use are very straightforward cost effective index funds for the most part and most of it is in the Vanguard the company Vanguard index fund which is the S&P 500 Index there is an active manager American Funds europacific growth um the rest of the equities are passive in other words they're indexed you turn over to page nine you'll see the convertible bond fund which is an index fund and the high yield bond fund which is also an index fund so the fees are low it's a very costeffective way to get diversification page 10 is a snapshot of uh the Sawgrass account which is valued at 2, 294,000 so we're the custodian on the Securities so that's why I'm giving you this information so the money is is housed at our trust custodian which is reliance any questions that's concludes my comments it's been good we coming back back strong from what we lost in 22 accept your report I second the motion motion passed unanimously we'll go to next up bergus Chambers good morning thank you for having me obviously I'm not vergus I'm Mitchell Brennan here for him today uh should see a handout that I'll go over first so it looks like this on the front we'll start on one of that just an update on markets obviously a lot has happened since the end of the quarter June 30th so want to give a brief update on that and then we'll jump into the the full report um so on page two uh you'll see here on the left hand side the Magnificent Seven um so really a continuation of last year where the seven large cap growth Tech Communications companies so think of Nvidia meta which is Facebook's parent company Microsoft Amazon Apple Google Tesla um those seven count or companies have continued to lead the markets higher and so you see on the lefthand chart this is actually through the end of July and through June uh significant outperformance compared to the market on average through the end of July 29% return for those seven uh companies attributing over half of the total return of the IND index if you look at the other you know 493 companies in the S&P 500 on average up just 7% uh year to dat now you'll see the sharp decline on that green line so in July we actually saw a reversal where a lot of those large cap Tech names especially Nvidia sold off and we saw a broader Market rally where things like small cap was up over 10% for the month of July midap outperformed up 6% large cap value so areas like financials real estate uh they started to outperform on the expectation that we are going to start seeing rates come down and that should benefit those companies um and so certainly something healthier that we like to see a broader market doing well not just a handful of companies leading things higher the next page page three just highlights that even further so you'll see uh this is through the end of last week and so the Russell 2000 our gauge for small cap on a quarter to- dat basis so July 1 through Friday up 8 and a half% the Russell 1000 value so large cap value up 6 and a half% compare that to the gray highlight right between them large cap growth up just one% quarter of dat and if you look all the way to the right that three-year column uh these are areas of the market that either haven't participated or have really underperformed large cap and large cap growth as a whole so if you look at the Russell 2000 uh it was actually at the end of the second quarter it was negative for the past three years uh the recent rally has put it back in positive territory but on a three-year basis up just shy of 5% annually compare that just below to the Russell 1000 growth so large cap growth up annually over the past three years over 32% and then large cap value right below that highlighted in the red box uh you know on an absolute basis 22 and a half percent is fantastic but again that trailed um large cap growth annually by nearly 10% so again uh certainly would love to see a broader rally like we've started to see in the second quarter and obviously as rates start to come down areas that haven't participated should benefit uh to the upside on page four speaking of interest rates the one thing that uh has really been the focus of the fed and their attempts to eventually start lowering rates has been inflation so this is a chart going back to early 20121 shows the trend of inflation peaking in June of 22 at over 9% coming down in June of 23 all the way back down to 3% and then really over the past year we kind of bounced between three and 4% we finally broke through at 3% threshold in July the CPI numberers not shown here this is through June of 24 but in July we just got that reading a few weeks ago uh 2.9% so now with that the most recent fed meeting last week uh Jerome Powell has indicated that we are going to start seeing rate Cuts this year there's essentially a close to 100% probability that we'll see at least a quarter perc rate cut in September uh and now the expectations for Market are are we going to see just one quar per rate cut will we see 50 base points so half a percent rate cut before the end of the year um and so the money is at least one uh quarter per rate cut in September maybe an additional one in uh December uh and then if we see jobs numbers labor market numbers really start to tank uh we could see the FED more aggressive and cut rates at a faster clip but our expectation right now is begin with a quarter perc rate cut and then reassess in December and could potentially see another quarter per rate cut during that time and that's shown on page five those dotted lines on the far right are the expectations of the fed and blue and the market in green so the FED is content with just one rate cut for the year uh the market expects two uh and then if you look into 2025 uh the FED is expecting four rate Cuts so going from 5.1 to 4.1 so each rate cut is considered a quarter of a percent and then the mar Market is expecting similar lines four rate Cuts in 2025 and then an additional four rate Cuts in 2026 obviously these are just expectations they've changed drastically so if you go to the next page uh this is just a zoom in of those expectations so you'll see that gray highlight in the background that's actually how drastically the expectations have swung throughout the last year so at one point to start the year we're expecting up to seven rate Cuts uh the market was and obviously that shifted significantly with inflation being a little stickier than expected but uh the trend overall Again by 2026 getting rates back down into that 3% range and then lastly two more pages page seven um so now that inflation has broken through 3% the target goal for the FED is still to get down to two but certainly on Trend to do that uh the new Focus has been labor markets and unemployment and uh recent reports have swung the market pretty drastically over the past two weeks we got a jobs report that July added significantly Less jobs than expected uh and a sharp decline from the jobs added in June uh the next week we got a follow up that the jobless claims number was lower than expected so positive news that the mark the labor market was a little stronger than uh the jobs report the previous week had indicated uh and then unfortunately we triggered What's called the Som Rule and so uh to break it down as simply as possible it's really just a trigger that shows the unemployment rate is accelerating faster than expected um and so it just shows the last three months on average uh that average is now at least half a percent higher than the lowest point over the past 12 months so again just a ramp up in unemployment that was triggered with the July jobs report and that rule has indicated or signaled uh the past 12 recessions so just another kind of red flag in there that maybe a recessions on the horizon uh but I'll caveat that with saying that the other red flag we've seen that's been a you know 100% predictor of recessions in the past is the inverted yield curve and we've been in an inverted yield curve so that means uh shorter term interest rates are higher than longer term interest rates uh we've been in an inverted yield curve since July 22 and have not fallen into a recession yet so you know the fam is saying is it's different this time uh that's yet to be determined obviously only time tell uh but again just another red flag that uh you know the FED is hoping to have a soft landing and avoid a recession but just another indicator that we may see aess recession on the horizon and if we do that would certainly trigger the FED to be more aggressive in their rate cuts and we' see more rate Cuts quicker despite that we do continue to see strong consumer expenditures and growth um company earnings continue to be strong so again that's why you know we haven't seen a recession yet and could postpone the recession even further and then lastly page eight obviously big uh event coming on the horizon is the election in November and so just to kind of put it into context um historically it really hasn't mattered especially post elction uh what happens in terms of who wins and which party goes into uh into the White House if you look at the past three administrations on average you know 16 uh% return for Obama and Trump and then most recently the Biden Administration through the end of June about a 12 and a half% return on annual basis so very strong relative Returns the Bush Administration is a little bit of an outlier but consider we experienced both 911 and the great financial crisis in 2008 during his uh Administration so again a little bit of an outlier there what's interesting is you can see that depending on what party is in power uh it really dictates the sentiment that uh individuals and consumers have towards economic conditions when Republicans in power no surprise Republicans tend to think the economy is doing very well and Democrats not so much and vice versa uh I will say it does seem to appear that Democrats tend to be a little more pessimistic than uh Republicans anyway but as of right now you can see Republicans not very favorable on the economy with the Biden Administration um certainly if Trump was reelected Ed I'm sure those uh sentiments would change drastically so the good news is historically the year after an election and this goes back to the mid-40s every presidential election on average the year following election markets are up roughly 10% so things could certainly change obviously the economy will will impact that certainly uh but on average we see volatility going into election because of the uncertainty if we will win and then once that election is finalized that certainty comes back in markets tend to Trend higher afterwards so our view is you know continue to stay disciplined in in your approach and your targets uh take our cues from the FED in terms of when we need to start rebalancing out of cash and back into fixed income when rates come down those fixed in income security so both their core bonds and high yields will start to outperform uh so we may see an opportunity in the near future to start rebalancing as that 5% yield on cash comes back down to four and 3% back into fixed income and taking advantage of a very strong whole market for poliy and then into our reports we can actually just quickly flip over to page four so a fantastic quarter in terms of return so for the total plan uh quarter end June 30 143,000 investment gains good for a 1.4% return and right in line with your strategic model and that ranked you in the top 30th percentile of other public Pension funds across the country uh led by your large cap Index Fund the Vanguard institutional up over excuse me 4% high yield bonds 1.4% and then your Global infrastructure through con and steers up 1.3% fiscal year date so the first uh three quarters of the fiscal year one and a. half million in investment earnings uh and good for a 16.3% return uh did slight slightly Trail the Strategic model uh but still ranked in the top 18 percentile of other public Pension funds so outperforming uh you know 80% of your peers for the fiscal year to date uh on a one-year basis so the past 12 months uh earned 1.1 million or 11.7% did Trail the Strategic Benchmark but again uh performed in the top 39th percentile so out performed over 60% of your peers and to No Surprise led by your large cap allocation up nearly 25% midcap 13.7% and then your International manager American Funds Euro Pacific up 11.4% on a 5year basis 3 million in investment gains good for a 7% return annually and then on a 10-year basis 4.9 million in investment gains good for a 6% return annually and then page 11 uh again just a lot of those numbers are went over but we did finish the quarter at 10, 400,000 in total assets as of yesterday that is increased to 10 just shy of 10, 800,000 and that does not include updates from your private real estate manager uh or your Global infrastructure through the end of July um because we get those statements quarterly and monthly um but again very strong uh fourth quarter of your fiscal year so hoping to retain that you know 16 to 17% return for the fiscal year and uh you know continue to drop off a lot of those uh losses from 2022 so with that no concerns on any of your your funds and Investments um our only recommendation is just to continue to keep an eye on interest rates and as they come down may see an opportunity to start rebalancing some of that money back into your highi and and saw grph with your uh core Bond allocation to take advantage of the bond B market that will happen as rates come down so with that I will conclude my report I've talked quite a bit so I'll will open it up to you for any questions or anything you'd like to discuss any questions make a motion to accept the report motion pass anonymously thank you all right move on to clausner caufman Jensen levenson with Mrs Parish yep hi everybody can you hear me okay yes good morning great good morning um I have nothing to report on my end so all is good um in the legal department just wanted to uh let you all know that our office will be at the division of retirement um conference in November so hope to see some of you there if you are available to attend and I'm happy to answer any questions if there are any good all right thank you thank you no motion for that okay next to the resource center meting also I have3 police of firefighters Conference next item I have is the premium tax distribution which the city has already received and signed off on it she CH last year for 20223 the next two come from our finance department some changes these are uned for you to take a look at contrib these go up till June also see your income different I know we've been talking about doing the workshop where do we stand on that are we just holding off for now we're do in December December okay but we are going toy in September I just got a few dates this morning we'll be coming back with the general plan F today so we'll be coming back for that but what we'd like to do is either here maybe in the annex um having myself Scott B and someone else from our office come up just have some snacks invite the retirees and the current employees so they can meet us and we can answer any questions anyone and we'll try and do that in September I I just got some dates this morning to see if room is open are available and we'll send out an update on that we'll be Workshop the December thank you motion we have a motion for that or okay right thank you we the expenditures all right everybody review the quarterly expenditures um excuse me the line of December 23rd P Simons says refund I can talk to that um when the actuary uh went through and figured out the changes at the beginning of the year because uh the firefighter retirees got lower um they realized that when they did the when they did the actuary for him in Prior years there was a mistake and so they uh refunded him that mistake good make Bill Sor um he he made a motion made I'm sorry I got cut up on no you're fine that's good just taking a good look yeah I second that motion motion pass unanimously to accept the courtly expenditures are there any public comments all right timej the meeting thank you do you want motion to I should motion to adjourn yeah I make a I second that motion sorry sorry all right meeting adjourn thank you thanks everybody