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Home My WebLink About07-15-2025 MinutesCITY OF SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTE PENSION BOARD OF TRUSTEES QUARTERLY MEETING MINUTES Council Chambers, 1225 Main Street, Sebastian, FL 32958 Tuesday, July 15, 2025, at 5:OOPM TRUSTEES PRESENT: Robert Allen David Puscher Titt.3ifood TRUSTEES ABSENT: Paul Reeves Ken McDonough OTHERS PRESENT: Troy Jenne, Foster & Foster Bonni Jensen, Klausner, Kaufman, Jensen & Levinson Scott Owens, Graystone Consulting Nick Niak, ClearBridge (via Zoom) Steve Stack, Highland Capital Karen Russo, Salem Trust Company Doug Lozen, Foster & Foster 1. Call to Order — Tim Wood called the meeting to order at 5:01 PM and a quorum was determined. 2. Roll Call — As reflected above. 4. Approval of Minutes a) April 15, 2025, quarterly meeting The Board voted to approve the April 15, 2025, quarteriv meeting. minutes as presented. upon motion bv David Puscher and second bv Robert Allen: motion carried 3-0. 6. New Business a) Proposed 2025-2026 budget i. Troy Jenne reviewed the proposed budget with the Board. The Board voted to approve the proposed 2025-2026 budqet as presented, upon motion bv David Puscher and second bv Robert Allen; motion carried 3-0. b) Proposed 2026 meeting dates i. Troy Jenne reviewed the meeting dates with the Board. The Board approved the meetina dates with the chanqe of the October 13. 2026, meetinq date to be determined, upon motion bv Tim Wood and second bv David Puscher: motion carried 3-0. 0 c) Trustee term update L Troy Jenne discussed Ken McDonough, member elected, was retiring and a new Trustee search was ongoing. ii. Troy Jenne discussed the Election of Officers with the Board. The Board approved Tim Wood to continue as the Chairman, upon motion bv David Puscher and second bv Robert Allen; motion carried 3-0. The Board approved David Puscher as the Secretarv. upon motion Tim Wood and second bv Robert Allen, motion carried 3-0. 7. Reports (Attornev/Consultants) a) Foster & Foster, Doug Lozen, Plan Actuary i. Experience study presentation 1. Doug Lozen reviewed the experience study he prepared for the Board. 2. Doug Lozen reviewed the summary for the Board. 3. Doug Lozen discussed the current funded status at 88.6%. 4. David Puscher and Robert Allen asked Doug Lozen multiple questions about the study, which Doug answered. 5. Doug Lozen reviewed the assumption rate recommendation with the Board, and they had an extensive discussion, 6. The Board requested to delay deciding on the experience study until the end of the meeting. b) Salem Trust, Karen Russo, Plan Custodian i. Annual company update 1. Karen Russo spoke to the Board about the day-to-day workings and the historical items they had processed for the Plan this past year. 2. Robert Allen asked a question of Karen Russo, and she answered it for him. 3. Karen Russo reviewed the updated security procedures and call back process with the Board. 4. Karen Russo thanked the Board for their business. c) ClearBridge Investments, Nick Niak, Investment Manager i. Quarterly report of March 31, 2025 1. Nick Niak reviewed the general work his firm did for the Board. 2. Nick Niak discussed in depth the specific investments and strategies deployed by their firm. 3, Nick Niak reviewed the Al space; to include the data centers and spin off options they invested in internationally. 4. Nick Niak discussed the projections for the market moving forward overall and specifically for their holdings. 5. Robert Allen asked Nick Niak a question and he answered this for him. 2 d) Highland Capital, Steve Stack, Investment Manager L Quarterly report as of June 30, 2025 Steve Stack discussed a change in staffing and a replacement that just signed a contract with them, and he would begin shortly. 2. Steve Stack discussed the strategy they used during presidential transitions, and they adjusted their strategy based on this research. & Steve Stack reviewed the Deep Seek spike and its effects on their holdings. 4. Steve Stack gave a review of the Top 10 Domestic Holdings for the Board. 5. Scott Owens discussed the concern that Highland was slipping out of their benchmark with the Board that was brought up at the previous meeting. (Vote: The Board took a recess from 6:55 until 7. IOPM e) Graystone Consulting, Scott Owens, Investment Consultant i. Quarterly report as of June 30, 2025 1. Scott Owens reviewed the Board's request to see each manager once per year. 2. Scott Owens reviewed the difference in growth and value as well as large versus small cap funds. 3. Scott Owens discussed the effect of the President's tariffs on the market and the effect of social media on the market. 4. Scott Owens discussed it appeared overseas companies were absorbing about 60% of the tariff increase. 5. Scott Owens reviewed the U.S. Equity market performance for the quarter. 6. The market value of assets (MVA) as of June 30, 2025, was $26,280. The total fund net returns for the quarter were 8.01%, outperforming the benchmark of 7.15%. The 1-, 3-, 5-, 7- and 10- year gross returns were 11,37%, 10.51%, 9.56%, 7.62% and 7.13% compared to the benchmarks of 12.46%, 11.38%, 9.49%, 8.21 % and 8.02% for the same respective periods. Since inception (02/01/2011), total fund net returns were 7.11 %, underperforming the benchmark of 8.27%. * Scott Owens discussed the asset allocations and commented all were in compliance. * Scott Owens discussed the Intercontinental performance. 9. Scott Owens recommended selling where they were overweight and moving it to where they were underweight. The Board voted to approve reducina Larcie Cat) to 17% and mid qrowth to tamet of 8% and put the remainder into fixed income on a pro rata basis. upon motion bv David Puscher and second bv Robert Allen; motion carried 3-0. 10. The Board requested to return to the experience study discussion at this time. The Board discussed the study and decided to stay at the current 7.1 % assumption. 3 The Board approved stavinq at 7.1% assumption rate and option 10 • the Experience Studv. upon motion bv Tim Wood and second bv David Puscher: motion • 3-0. f) Klausner, Kaufman, Jensen & Levinson, Bonni Jensen, Board Attorney i. Bonni Jensen discussed the memo Entities that Boycott Isreal with the Board. ii. Bonni Jensen discussed the securities monitoring companies she researched at the Board's request. iii. David Puscher asked Foster & Foster to contact Robbins Gellar to confirm the relationship was still active. The Board approved addina securities monitorina with Wolf Popper and confirminq P.ctive relationship with Robbins Geller. upon motion • David Puscher and second • `••- Allen: motion carried 3-0. 8. Consent Aaenda a) Payment ratification i. Warrants #20 and #21 b) New Invoices for payment approval i. None c) Fund activity report for April 9, 2025 — July 8, 2025 The Board approved the consent aqenda as presented. upon motion bv David Puscher • second • Tim Wood. motion carried 3-0. 9. Staff Reports. Discussion, and Action a) Foster and Foster, Troy Jenne, Plan Administrator i. Annual Report update 1. Troy Jenne gave an update on the Annual Report which he advised was filed with the State and has been approved. Troy advised we normally hear from the State in mid -August about the amount to be received. Educational opportunities I. Troy Jenne reviewed upcoming training opportunities available the Board. I 12. Next Meetinq — October 21, 2025, at 5:00PM, Quarterly Meeting. Ell Respectfully submitted by: Troy Jenne, Plan Administrator Approved by: Tim Wood, hairman Date Approved by the Pension Board: 10-25-2025 0