Employee Retirement Account Committee (ERAC) Regular Quarterly Meeting

Employee Retirement Account Committee (ERAC) Regular Quarterly Meeting

AGENDA

EMPLOYEE RETIREMENT ACCOUNT COMMITTEE (ERAC) REGULAR QUARTERLY MEETING

September 10, 2026

10:00 A.M.

MEETING NOTICE AND FINAL PUBLISHED AGENDA:

Click to View Meeting Notice and Final Published Agenda

1.

CALL MEETING TO ORDER: Presenter(s): Chair Billingsley.

2.

PLEDGE OF ALLEGIANCE: Presenter(s): Chair Billingsley.

3.

PLEDGE OF CIVILITY: Presenter(s): Chair Billingsley.

"We may disagree, but we will be respectful of one another. We will direct all comments to issues."

4.

ROLL CALL: Presenter(s): Debra Martin, Pension Plans Administrator

5.

PUBLIC INPUT:

6.

APPROVAL OF MINUTES:

6.1.

Approval Re: Minutes of the Employee Retirement Account Committee Regular Quarterly Meeting of June 11, 2026. Presenter(s): Chair Billingsley.

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7.

QUARTERLY INVESTMENT REVIEW:

7.1.

Presentation and Discussion Re: Corebridge Financial, ERAC Report for Quarter Ending June 30, 2026. Presenter(s): Trent Harris, Financial Advisor; Corebridge Financial.

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7.2.

Presentation and Discussion Re: Daher Capital Group, Quarterly Investment Analysis Review Ending June 30, 2026. Presenter(s): Howard Daher, Principal, Daher Capital Group.

Click to View Backup Materials (a).

Click to View Backup Materials (b).

Click to View Backup Materials (c).

8.

UNFINISHED BUSINESS:

9.

NEW BUSINESS:

10.

OTHER MATTERS:

11.

like it. plane to the U.S.. know, it's a letter do today to do are a compliant start? >> really attorney. >> This sing this what is ? And because a lie as like a practice run. want hear myself. go ahead and call this. Employer retirement account committee quarterly meeting or I could have everyone stand for the Pledge of Allegiance. sitting the United States of America to how One nation under God. And for all. Read the pledge of civility. We may disagree, but we'll be respectful of one another direct all comments to shoes. And I will turn it over to Mister Martin for local. Share Billings line, president vice chair present treasure President Secretary Graves, the president number for a loan. president. Okay. We'll move on to public input. Is there anyone? Like anybody online? We'll move on to approval of the from the play retirement accounts. Committee regularly quarter regular quarterly meeting of June. 11th 2026. Why the motion to approve this. Now that the motion to approve it. Motion to approve, approve by Secretary Greg seconded by Treasure Strickland. >> We have a vote. >> Chair Billingsley? Yes. Vice chair Sullivan. Yes. Terms are strict one. Yes. Secretary groups, yes. Member of the land yes. Okay. Motion passes unanimously. We're going move on to the quarterly investment review. I will call on Mister Trent Harris of Corporate Financial to deliver the employee retirement Accounts. Committee report for quarter ending June 30th of 2026. All right. So look at engagement numbers like we always do. >> And I just spent down the first column there is care center contacts from distance. What it's like covering between 20 and 30. So that's good. Not a lot of people of color like cares. And the next column is local advisor, which would be myself. >> Recess. >> All right. Let's go ahead and Mister Harris will thank you. Back up with you. >> was on the local advisor? So as you can see. For being here twice a pretty good. We're contact. June was a little line. I was out for a couple weeks. So that might have An effect What I really like to see is those last 2 columns, the mobile app usage in the shows, you know, a lot of people Lily's logging into their accounts, paying attention. I think that's a good thing for everybody. So what we have? Surprisingly more people actually on the computer than on the phone, witch. Which is great. There's more functionality on that. So 2200. For the quarter getting on the Web and looking at their accounts. And that's really keep going up talking to people that I know. >> just such a good job. We appreciation this year, visible, appreciate Yes, sir. Thank you. Okay. And we'll move on to the next Mister Howard on you for their capital Quarterly Investment analysis review from quarter ended June 30. Good >> You're going to get a lot of your time back this And you know, again, we're going back to the end 2nd quarter review. right now is, as we all know, even ask you to, I mean, the markets been little bit up and down, if you will. But we ended the 2nd quarter positive territory, obviously was kind of like same game plan. you want to last year wasn't as good and he wanted this year, didn't start well. And then, of course, you to last year this year set the same playbook. So the markets continue to be positive right now. So we did have a good bounce back in in the market. You know, the S and P 500 alone returned 15% in the 2nd quarter. I mean, that's how just like things are just spiking up and down there. They're pretty quick. And again, maybe to to to the point, you know, without going out and surveying participants, it's like the activity on their accounts. Seems like they're engaged training. Seems like, you know, they're they're watching what's going on, which is get. it pushed the year-to-date to process May 10% ending June. And as of last night's market close the SNP's up like almost 12%. So from June. last night, which is about 2 months in a couple of trading days. You know, the markets kind of weakened a little bit. It's kind of like slow down a little bit. I think most folks are still expecting the year to still positive, if you will. But we still got a lot concerns. course, you know, the the issue with Iran, obviously right now, it seems like, you know, with regard to the Fed, it looks like the Fed's going to raise interest rates for most people expect the Fed to raise interest rates, maybe twice. You know, this year, you know, once in September, maybe once in December and of course, that's obviously just to keep slowing down. Inflation. I think, you know. What, we keep hearing the readings that, you know, inflation is basically states like look around travel, we talk about it. People are still out there. Spending the August jobs numbers were actually pretty good. But the market like didn't react to it that favorably. I think he was just down by a few basis points. But at the end of the the jobs numbers look pretty good. When inflation is still here. So I think they're still trying to cool inflation. I think inflation's training little bit over 4% and the Fed wants inflation to be around 2%. So the only way to kind of slow it down, if you will, just to raise interest rates, low spending down. that's a little bit of a where the Fed is going with all this. What will it do to the stock market? You know, we'll see you know, a lot of folks believe that stock markets kind of stretched out right now. You know, it's it's been pushing up so much with all these headwinds, all this uncertainty. That, you know, you have higher interest rates, people might folks might be a little bit. More cautious to take stock market risk and then just put things into maybe some safer investments. You know, things like that. But of course, as interest rates go this kind of effect, you know, housing, of course, you know, so housing applications can slow down car you know, things, you know, large items where, you know, you've got long to get that. And then, of course, credit card. I think I read a couple weeks ago, credit card debt is just getting back up there, which is a little bit of a concern as well. But overall stock market continues to do. I know it's still great fun. Markets are still a little bit like volatile, if you will. You we'll see how that plays out. But, you know, everyone's looking at the 10 year, the 30 year Treasury. And and that's almost a prediction of of where they think the market's going to be over the over the next couple years. But overall, you know, and as a matter of fact, even this morning for the last couple weeks, you know, it seems like a lot of folks are concerned you hearing about concerns with Ai. Thank you. And of course they're super AI Super AI. And so I and steroids. And you know their concerns and they were talking about it this morning as a matter of fact, and last couple of weeks that a machine learning this party. I and as these machines get bigger and brighter and they basically take over what what what the human capacity that actually generate learn and basically produce an outcome that machines could actually take over the direction of the human. So that's what they're really concerned about here in the U.S. and eyes great. I mean, generates a lot results and models, if you will. But the human element has to stay. And I think that's where the concern is right? It's interesting because I even did keep question. Yes, absolutely. You know, it's so it's tough. But you make every movie Terminator where shootings took over. >> You know, back then it's like they kind of saw was coming right? And there's that movie with Matthew Broderick where the machine thought it was playing a chess game. That and more something yes, yes, 4 games is something more Yeah. So >> I don't shown I need broad right Yeah, but anyway, there's a lot of a lot of infrastructure, a lot of cap being invested into like AI CHIP manufacturers, data centers and super data So we'll see. I mean, and again, question is always, is it profitable, you know, with all the money that's being thrown at a it everything. Is it going to be profitable? I think for the most part going to be profitable for the chip manufacturers. You know, the data centers, the the Microsoft a, you know, a cloud computing. You know, large companies, if you will. And then at the end of the day, as far as users of corporations and how it interacts with the human capital. You know, the folks that are actually here desks and how they work. How is that going to play out? we'll see. it was little concern is, you know, the news this morning is like within the next 5 to 10 ice going to dramatically change how we live, how we do business, how we think think about what social media was doing to our young folks today. You know, when and how it's it's like kind of a. I would say motivating them, how it's affecting them and how they interact socially, how they make decisions and things like that. So it's it's incredible I can do. I mean, the sky's the limit, but they also speak to the other side, which the compliance and liability that comes with it. you know, that's kind of like this momentum shift is where the market's going right now. We're not saying it's pretty interesting times we're living in. But than market keeps pushing We'll see how the bond markets react to the front for the rest of the year. I know that in the in the last meeting we had, you know, most of the heavy lifting was done in that last meeting because we did make changes and not sure those were fact. Where those already such a September. Yes, okay. So they're still to come. Yes, okay. So then we really have only I have 2 funds on the watch list. Not overly concerned. Now these are and I'm sorry, referring to the to my summary notes if that helps. We have to static allocation models, which I say static. Because you know that. These funds are basically going to stay within their mandate. The first one is the mfs conservative fund. So it's going to be tilted more towards bonds, if you Just a conservative allocation. >> It conservatively today for the next 10 years. 5 years, 15 years with >> And then the other one is CMA Fest growth allocation fund. So that's also static. It's not like the Target date. Fund said. That the risk for they get more conservative as the years go by. So these are just static allocations that are built. >> We don't have a lot of money in But >> when you look at the returns and we look at the risks, you know. The mfs conservative in the end this growth allocation they are lagging their peer group, their benchmarks. I'm not like overly concerned because, you know, you could have a fund manager building a conservative allocation, but they're just going to be tilted more towards maybe growth for tech stocks. And they're going to look like a rock star, right? Taking a look better than someone else. But when you look at these 2 funds, the wrist measures are It's just that it's not performing. At or closer to the benchmark or peer groups that we want. So for that reason, I I just have been on watch may be a silent watch you will. But again, it's not like they're losing money. It's just that their bill conservatively. They don't take a lot of risk compare their peer group. They don't have that much technology compared to their peer group for a conservative or or growth allocation. I should say so. I just have those your funds just why watch for right now, if you will, so really that that said to me that there's really no recommendations to close or replace anything. I as I see it right here. Yeah, we have 5, 5 investments that are in process of closing and with these 2 just placed on the watch list, if you will, that be just the recommendation for right now? The question. Yeah. At what point would you consider replacing them? We're looking at alternatives. Yeah. Great specifically with the growth allocation because it's 9 out of the last 12 quarters. Worst kind of miss the benchmark. Yes. So we Under the new criteria, investing reports it starts to back test these 2 funds as well. And they don't look that and that's why they're popping up short. So the thing is, you know, on the conservative allocation fund, I think we have listened like $300,000. So the question always is, you know, we look at our we look at utilization. We look at our demographic. We look at how much traction working with these funds. We can certainly I could certainly come in with like 2 or 3 other options just to put on the table for each category, you know, just to compete. And then the question becomes for the committee is, is it worth the higher risk for maybe the higher for the for the performance? You know, that's kind of where the discussions. I think the growth occasion has about 1.3 million in we can dig into that. But that one has a little bit as far as invested assets and but the committee would like me, it's a great question. You know, I can bring light to other options just so we could. Say, hey, what do those look like? How much more risk are they taken and is the risk expense and the other metrics worth really considering on a replacement? You know. I mean, I think it look at that I think at least be worth looking at. And then at that point, we can kind of decided that something we want to forward I think the work with a look that the sorry, physical. get. great to read 3 options in each category just the great. That the cool. >> Haha. It was a fire line wired >> All The next page. As far as asset allocation. The top 5 funds represent 65% of the I was Asian and you can see the vanguard Wellington on. It's kind of a moderate allocation. It continues to be our number one held invested fund almost 20% of the assets are in Wellington. >> And it's still a great I mean, none of these funds are on the watch list, right? Which is good because that's typically for committee concerns. height of the station is anything on the watch list we need to concerned about and actually now Wellington funds to integrate 1, 3, 5, and 10 year. They're above peer groups and they're doing great. Get Delhi. 500 index, 2 basis points on that fund, which is which is terrific. Yet the Nasdaq 100, we didn't replace Valley with the victory. With all due respect. And that was more of a cost that was for a cost structure thing, And then anything else. The fixed interest cow and the the Global Global life sciences fun. So. Those 5 represent 65% of the assets and the planet. I think it's pretty well diversified and course participants control 100% of their account. we're seeing a little bit more going into target date funds have right with that. You come across those questions. seems to still become very popular cross. Pretty much all defined contribution plans. These plans for participants control the investment decision. We ended the quarter at 35.5 million dollars. So we saw a nice pop up from the end of the 1st quarter. I think we're looking pretty good there. don't have. Too much rain. Most of the decisions are made at the last meeting. That's really all I have the other piece that I have was excuse me. It's the 2 page or show the DC plan assets airing with the 4.57 plan. So you can see how much you know in the red. Those are the funds that we are changing now. And then the ones in red with the peach that ground, if you will, it's highlighted. Those are the ones that are on watch lists. You can see how much exposure we have on the 4.57 side specific to what? We're responsible for the season. Okay. So about 19 million dollars of the 4.57 assets are basically Mir with what we currently have on the DC. 19 million dollars. And then of course, you have the investment report. The investment port looks a little bit different. I think I mentioned that the there's some things that they if I 3.60 took out and we're hoping that they would bring it back. And you know what, the fun fact sheets. Look, a little bit different. The older reports had some when I say again that some really cold day at that and then they pull some of that back. I think just to consolidate the reports. But you know, once you get used to it overload on data, kind of like that because you look for that. So now they're just a little bit more condensed consolidated. But for the most part, everything basically. Straight forward. And that's really all I have. Now bring in couple of those options for category. And so for we have consensus to accept the recommendations to places to watch. >> We'll look at central alternatives for the next meeting. I thank you, sir, as always. My pleasure. Very informative. go ahead and move on. Is there any unfinished business any new business? Other matters. questions. Comments, concerns. Very cool presentation. Thank you. Thank you, Worse. >> With that, I'll go ahead