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Home My WebLink About04-15-2025 MinutesCITY OF SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM PENSION BOARD OF TRUSTEES QUARTERLY MEETING MINUTES Council Chambers,1225 Main Street, Sebastian, FL 32958 Tuesday, April 15, 2025, at 5:OOPM TRUSTEES PRESENT: Paul Reeves Ken McDonough Robert Allen David Puscher s = z 011111111tTaNm OTHERS PRESENT: Troy Jenne, Foster & Foster Bonni Jensen, Klausner, Kaufman, Jensen & Levinson TJ Loew, Graystone Consulting John Forelli, Boston Partners Connor Watson, Boston Partners 1. Call to Order — David Puscher called the meeting to order at 5:02PM and a quorum was determined. 2. Roil Call —As reflected above. 3. Public Comments — None. 4. Approval of Minutes a) January 21, 2025, quarterly meeting The Board voted to approve the January 21. 2025. auarteriv meeting minutes as presented, upon motion by Robert Allen second by Ken McDonough: motion carried 4-0. 5. New Business a) Trustee term update i. Troy Jenne commented Ken McDonough's member elected seat expires in June 2025 and he would be retiring on August 8, 2025. A nomination request would be sent to the membership to elect a new member to serve. b) Election of Officers i. This item was tabled until the next meeting because the Chair was not in attendance and there was potential for a trustee change. 6. Old Business —None. 7. Reports (Attorneif/Consultants, a) Boston Partners, Connor Watson/John Forelli, Investment Managers i. Conner Watson reviewed the company's history and current market footprint. ii. Connor Watson commented George Gumpert was still their point of contact. iii. Connor Watson reviewed the March 31, 2025, net returns were -5.80%. iv. John Forelli reviewed the MVA as March 31, 2025, was $3 million. v. John Forelli explained the firm's stock picking process for the Board. vi. John Forelli discussed the current portfolio and the strategy within. vii. TJ Loew asked about the process of dealing with the severe ups and downs and sectors they were picking or avoiding. John Forelli explained this for him. viii. Robert Allen asked John Forelli about his outlook for the next two years. John explained this for him and the Board. b) Graystone Consulting, TJ Loew, Investment Consultant i. Quarterly report as of March 31, 2025 1. TJ Loew reviewed the current market instability and the outlook moving forward. 2. TJ Loew reviewed the Capital Market Returns for the Board. Large Cap Value was the only sector that remained solid this past quarter. 3. TJ Loew gave an update on the market environment and performance for the quarter. 4. The market value of assets (MVA) as of March 31, 2025, was $24,558. The total fund net returns for the quarter were -1.88%, slightly outperforming the benchmark of -0.55%. The 1-, 3-, 5-, 7- and 1 0-year gross returns were 2.81%, 3.88%, 11.57%, 7.28% and 6.88% compared to the benchmarks of 4.97%, 4.30%, 11.35%, 7.51 % and 7.22% for the same respective periods. Since inception (02/01/2011), total fund net returns were 7.26%, underperforming the benchmark of 7.89%. 5. TJ Loew discussed the asset allocations were all in compliance. 6. TJ Loew reviewed the manager performances and the potential to invite Highland to present at the next meeting. 7. Ken McDonough asked TJ Loew about the process of questioning a managers performance, and TJ Loew explained this process. 8. TJ Loew reviewed the Alternative Investments Education hand out edition with the Board. 9. TJ Loew discussed the asset allocations review on the handout. This produced future projections of the portfolio based on various changes that could be made. 10. TJ Loew discussed the previous question about data centers and the potential to leave real estate, get back into it, or stand pat. 11. Paul Reeves discussed the data center option with TJ Loew. TJ reviewed the Intercontinental potential to get into the data center field to give the plan exposure. 12. Bonni Jensen asked TJ Loew to explain the fine print to move forward on this, and allowing the manager to determine the way to get in or out of data centers. c) Klausner, Kaufman, Jensen & Levinson, Bonni Jensen, Board Attorney i. Bonni Jensen discussed the IRS milage increase to $70/mile for 2025. ii. Bonni Jensen gave an update on the financial disclosure, Form 1. She advised this was the online form trustees must complete by July 1, 2025. iii. Bonni Jensen reviewed the Summary Plan Description (SPD) update for the Board. iv. Bonni Jensen discussed a few changes made and gave some advice to the Board. v. Bonni Jensen discussed a couple strikethroughs that didn't copy over to the PDF and she reviewed these with the Board. vi. Ken McDonough asked Bonni Jensen a question about the upcoming union negotiations and the need for an actuarial cost study about the cost of a COLA. The Board approved the Summary Plan Description as amended. upon motion by David Puscher and second by Ken McDonough: motion carried 4-0. 8. Consent Agenda a) Payment ratification i. Warrant#18 b) New Invoices for payment approval i. Warrant#19 c) Fund activity report for January 15, 2025 — April 8, 2025 The Board voted to approve the consent anenda as Dresented, upon motion by Ken McDonough and second by Paul Reeves: motion carried 4-0. 9. Staff Reports. Discussion. and Action a. Foster and Foster, Troy Jenne, Plan Administrator i. Annual Report update 1. Troy Jenne advised the Board that the Annual Report was filed with the State on April 2, 2025. Troy commented they normally hear from the State in mid -August regarding State monies. Educational opportunities 1. Troy Jenne reviewed upcoming training opportunities available to the Board. 10.Trustee Reports. Discussion. and Action a) Robert Allen discussed the Winter FPPTA conference and his positive experience. 11. Adiournment — The meeting adjourned at 6:37PM. 12. Next Meetinq — July 15, 2025, at 5:00PM, Quarterly Meeting. Respectfully submitted by: Tr-o�yWn-e�Ojk-d-—Rnistrator Date Approved by the Pension Board: Approved by: Tim Wood, Chairman -7 // 5-11Z r 4