General Employees' Pension Plan Board of Trustees Regular Meeting

CITY OF SARASOTA GENERAL EMPLOYEES’ PENSION PLAN BOARD OF TRUSTEES DRAFT MINUTES OF THE GENERAL EMPLOYEES’ PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OF SEPTEMBER 24, 2026, AT 10:30 A.M. OR IMMEDIATELY FOLLOWING THE POLICE OFFICERS’ PENSION PLAN BOARD OF TRUSTEES MEETING Board Roster: Chair Ryan Chapdelain, Vice Chair Mark Nicholas, Treasurer Kelly Strickland, Secretary Shayla Griggs, Trustee Robert Reardon, Trustee Barry Keeler, and Trustee Jan Thornburg. Trustees Present: Chair Ryan Chapdelain, Vice Chair Mark Nicholas, Treasurer Kelly Strickland, Secretary Shayla Griggs, Trustee Barry Keeler, and Trustee Jan Thornburg. Trustees Absent: Trustee Robert Reardon. Staff Members Present: Pension Plans Administrator Debra Martin, Senior Pension Analyst Anthony Ferrer, Pension Specialist Peter Gottlieb Others Present: Attorney Stuart Kaufman. 1. Call Meeting to Order: Chair Chapdelain called the City of Sarasota, General Employees’ Pension Plan (Plan) Board of Trustees regular meeting to order at 10:30 a.m. 2. Pledge of Allegiance: Presenter(s): Secretary Griggs. The Board and meeting attendees stated the Pledge of Allegiance. 3. Code of Conduct: Presenter(s): Chair Chapdelain. Chair Chapdelain stated for the record, “We may disagree, but we will always be respectful to one another. We will direct all comments to issues.” 4. Roll Call: Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin called roll; Trustee Reardon was absent.

Draft Minutes of the General Employees’ Pension Plan Board Regular Meeting September 24, 2026, at 10:30 a.m., or immediately following the Police Officers’ Pension Plan Board Meeting in the Sarasota City Commission Chambers Page 2 of 11 5. Public Input: None. 6. Approval of Minutes: 6.1. Approval Re: Minutes of the General Employees’ Pension Plan Board of Trustees Regular Meeting of July 23, 2026. Presenter(s): Chair Chapdelain. Vice Chair Nicholas made a motion to approve the minutes of the Board’s July 23, 2026, regular meeting; Trustee Keeler seconded the motion. The motion passed unanimously (6-0). 7. Approval of Retirement Requests: 7.1. Presentation and Discussion: DROP Retirement Request of Jose Goitiz. Presenter: Pension Plans Administrator Martin. Pension Plans Administrator Martin advised that Jose Goitiz requests to enter the DROP effective August 1, 2026, with almost 16 years of service. He elected the pop-up 100% to joint annuitant option. Vice Chair Nicholas made a motion to approve Mr. Goitiz’s request to enter the DROP; Trustee Keeler seconded the motion. The motion passed unanimously (6-0). 7.2. Approval Re: The Early Retirement Request of John Nopper. Presenter: Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin advised that John Nopper requests an early retirement with 25.5 years of service. She noted that, at the time Mr. Nopper submitted his application for benefits, he had indicated he would select a lump sum benefit. Pension Administration calculated Mr. Nopper’s lump sum benefit, and the Plan’s actuary, Peter Strong of Gabriel, Roeder, and Smith, reviewed and certified the calculation, upon receipt of Mr. Nopper’s application for benefits. Mr. Nopper then executed and finalized his election of the lump sum option on September 15, 2026.

Draft Minutes of the General Employees’ Pension Plan Board Regular Meeting September at a.m., or immediately following the Police Officers’ Pension Plan Board Meeting in the Sarasota City Commission Chambers 24, 2026, 10:30 Page 3 of 11 Trustee Thornburg made a motion to approve Mr. Nopper’s request for early retirement; Trustee Keeler seconded the motion. The motion passed unanimously (6-0). 8. Investment Performance Review: 8.1. Presentation and Discussion Re: Genter Capital, Performance Review as of June 30, 2026. Presenter(s): Brian Elliott, Institutional Division Head, Genter Capital. Brian Elliott of Genter Capital (Genter) appeared before the Board and introduced himself. Mr. Elliott provided a brief firm overview and noted it now has more than $10.5 billion under management. Genter is an intermediate to short/intermediate, high quality and high conviction fixed income manager. The portfolio is invested in A to AAA grade bonds, and it therefore has very little credit risk. Genter considers itself to be an active strategy and it trades frequently to capture relative returns over time. Its philosophy is one of relative value; the strategy starts with its macro-outlooks and focuses on liquidity; he noted that Genter performs its own credit research to assign values to over- or under-weighted positions. Beginning with the pages titled City of Sarasota Employees’ Pension: Distribution and City of Sarasota Employees’ Pension: Portfolio Characteristics, Mr. Elliott explained that the “yield to worst” (YTW) quantifies what would happen to a yield in a worst-case scenario, such as if a bond is put or called. Genter believes the YTW is the best indicator of future returns; the Fixed Income Returns page shows that the starting YTW highly correlates to the prospective 5-year return. At the Plan’s initial investment with Genter, the portfolio’s YTW was 4.44% and it is now approximately 5%; the portfolio’s duration was 4.09% as of June 30, 2026, and it has since come down. The Coupon Cash Flow Projection page shows the Plan should receive $37,079 in October 2026. On the page titled, The Fed Controls the Short End of the Curve, Mr. Elliott asserted that longer-term interest rates should be functions of both inflation expectations and Gross Domestic Product (GDP) growth, and both have been higher than forecasted. The Atlanta Federal Reserve (Atlanta Fed) is projecting GDP growth for the next quarter to exceed 5% when inflation is spiking due to oil shortages; accordingly, yields have backed up and investors that have moved from long- to short-term bonds have been rewarded. Genter’s overweight to the front part of the yield curve will benefit investors irrespective of whether interest rates go up or down; as investors select longer duration instruments, values become impaired as interest rates spike. He noted that Genter’s

Draft Minutes of the General Employees’ Pension Plan Board Regular Meeting September at a.m., or immediately following the Police Officers’ Pension Plan Board Meeting in the Sarasota City Commission Chambers 24, 2026, 10:30 Page 4 of 11 previous prediction of the implied long-term rate of 5.8%, however today, it is not unreasonably inaccurate. Genter benchmarks against the Bloomberg Government/Credit Intermediate Index (Gov Credit Index), although the portfolio is further restricted to A grade or better while the index includes lower grades; Genter believes the index is appropriate for a core fixed income fund. The page titled, Is the Bloomberg Agg the Right Benchmark for Fixed Income Core Allocation, compares the Gov Credit Index to the Bloomberg Aggregate Bond Index (Agg); over 25 years, the Gov Credit Index’s duration range has moved up and down approximately .6 years while the Agg has moved approximately 3.4 years. This shows the Agg has a significantly higher risk profile than the benchmark, which Mr. Elliott asserts is being driven by the mortgage-backed securities (MBSs); he clarified the portfolio does not invest in MBSs because rising interest rates moves duration farther out at the wrong time. To Chair Chapdelain’s questions, Mr. Elliott clarified that the portfolio does not invest in MBSs, as those securities detract from the portfolio’s duration. Currently the spread between the 2 year and 10 year is approximately 25 basis points, and Genter is using the opportunity to move closer to the front of the curve. While the current quarter is probably going to end flat, Mr. Elliott anticipates still having a positive rolling 1-year return. The Board thanked Mr. Elliott for his presentation. 8.2. Presentation and Discussion Re: Invesco, Performance Review for Period June 30, 2026. Presenter(s): Dane Hoard, Client Portfolio Manager; Kevin Pope, Director, North American Institutional; Invesco. Dane Hoard and Kevin Pope appeared before the Board and introduced themselves. Mr. Pope provided a brief firm overview, noting the Plan is invested in Invesco’s Intermediate Fixed Income Strategy. To Chair Chapdelain’s question, Mr. Pope advised that Invesco has approximately $2.6 trillion in assets under management. Mr. Hoard reviewed the Portfolio Summary page of the materials. Like Genter, Invesco is also restricted from venturing below single A rated securities; the strategy is designed to be a high-quality generator of predictable income, and it seeks value through credit selection and allocation rather than on interest rate predictions. The benchmark is the Bloomberg Agg Intermediate which means the portfolio is limited to securities with durations between 1 and 10 years.

Draft Minutes of the General Employees’ Pension Plan Board Regular Meeting September at a.m., or immediately following the Police Officers’ Pension Plan Board Meeting in the Sarasota City Commission Chambers 24, 2026, 10:30 Page 5 of 11 Mr. Hoard reviewed the page titled Market value reconciliation. He noted that the Management Fee is 0.2%, the Income is the yield or coupon received, and Investment Change is the change in the price of the bonds; the combined Income and Investment change is the total fund return, and for Q2 2026 and year-to-date, the return remains positive. On the Performance Summary, Mr. Hoard reviewed the trailing period results as of June 30, 2026. He noted that the page shows both the Bloomberg Agg Intermediate, as well as the Bloomberg Agg Intermediate A- or better, which more closely approximates the portfolio. He asserted the portfolio is keeping up with the stated benchmark considering interest rates have gone up and there is significant capital investment into the AI sector which has driven economic growth. This growth has resulted in nearly twice the amount of new bond issuance in 2026, which means the strategy has more opportunities to invest; this will likely result in either yields going up, or spreads, meaning the difference between corporates and treasuries, widening. The Option- Adjusted Spreads (OAS) at the beginning of 2026 were approximately .78%, peaked at .93% in March, and are now .74%; this suggests very high-quality companies are issuing credit. For the last several quarters, more than 85% of the companies in the S&P have actual earnings which have exceeded their projected earnings. This has resulted in global demand for US corporates, which has also driven up prices. Over the 1 Year and 3 Year periods, yields have offset the headwinds of higher interest rates. Longer periods are impacted by the high-rate environment caused during the COVID-19 pandemic. To Chair Chapdelain’s question, Mr. Hoard reported that Quarter-to-date in Q3 2026, higher interest rates have weighed down valuations. As of Monday, September 21, 2026, the 2 Year is up 72 basis points (bps) and 10 Year is up 65 bps. The portfolio’s preliminary year-to-date return is -.138% while the index is -.136%. Spreads are approximately .78%, which is considered tight and analogous to equity markets being at all-time highs. On the Performance Attribution page, Mr. Hoard asserted the portfolio performed as expected as it returned similar to the benchmark, despite interest rate volatility. This highlights the portfolio’s goal of adding value through security selection. On the Performance Summary page, there are no significant revelations since Invesco’s last appearance before the Board in 2025; the portfolio is a strong income generator with lower yield from year to year. While many investors believed the Fed would have eased monetary policy in 2026, that did not happen; combined with rising energy prices and a new Fed Chair, Kevin Warsh, who has been less transparent regarding future Fed actions, the market has become significantly more volatile. Mr. Hoard briefly reviewed the Characteristics page of the materials. The portfolio has been able to match pace with the index despite the index’s lower credit quality. The portfolio is overweight to corporates and AAA and AA rated Asset Backed Securities

Draft Minutes of the General Employees’ Pension Plan Board Regular Meeting September at a.m., or immediately following the Police Officers’ Pension Plan Board Meeting in the Sarasota City Commission Chambers 24, 2026, 10:30 Page 6 of 11 (ABSs) which will allow it to lock in yield while maintaining front-end exposure. It is underweighted to neutral in Commercial Mortgage-Backed Securities (CMBSs) due to challenges in the office space sector. To Chair Chapdelain’s questions, Mr. Hoard expanded on the portfolio’s slight underweight to MBSs. Investors can select MBSs based on issuer or coupon; lower coupon rates will be less sensitive to rate fluctuations with less yield, while higher coupons are more sensitive but have greater yield. Invesco moved into higher coupon MBSs to generate more income however the interest rate volatility in 2026 has not helped. The strategy is trending neutral in this sector. On the Quality and Duration Distribution page, Mr. Hoard reiterated the strategy’s limit to high-quality credit; Invesco does not see this as a hinderance as the portfolio has been able to keep up with the benchmark while maintaining a higher relative quality. He noted that the higher exposures to less than 1-year durations are due to cash holdings and short-term ABSs, and not specifically a tactical allocation on duration. Mr. Hoard briefly reviewed the IFI Credit Scorecard. Most importantly, the US Investment Grade row Overall score of D was revised this week to C. He reminded the Board that Fundamentals refers to issuers’ balance sheets. Valuations are a D because spreads are tight, and there isn’t significant value to be had when the market is at all- time highs. Technicals, which has been revised up to D or C, is supply and demand for issuance. While more issuance can dilute the market and force issuers to offer more concessions to attract investors, the other component, demand, considering the high credit quality and yields are higher, has been strong. At the time the presentation materials were published, Invesco believed issuance projections were low, however new issuance has slowed somewhat, and higher yields have allowed investors to enter the market and lock in income. The Board thanked Mr. Pope and Mr. Hoard for their presentation. 9. Unfinished Business: None. 10. New Business: 10.1. Presentation and Discussion Re: Audit Engagement Letter. Presenter(s): Presenter(s): Daniel Anderson, CPA and Partner; Jennifer Trotter, CPA and Director; Mauldin & Jenkins.

Draft Minutes of the General Employees’ Pension Plan Board Regular Meeting September at a.m., or immediately following the Police Officers’ Pension Plan Board Meeting in the Sarasota City Commission Chambers 24, 2026, 10:30 Page 7 of 11 Daniel Anderson of Mauldin & Jenkins appeared before the Board and introduced himself. Mr. Anderson presented the audit engagement letter. There are no new auditing standards from previous years or any GASB pronouncements which need to be implemented and could affect the Plan or the financial statements; the format, but not the substance, of the engagement letter has changed. He anticipates a comparable timeframe to prior years’ audits. To Attorney Kaufman’s question, Mr. Anderson confirmed that Mauldin & Jekins’ fee increased from $15,000 for the 2025 audit to $16,000 for the 2026 audit. To Chair Chapdelain’s and Treasurer Strickland’s questions, Mr. Anderson explained that the financial statements are typically presented at the Board’s February meeting. Mauldin & Jenkins will make every effort, and work with Pension Administration and the Plan’s actuary, to expedite issuance of issue the financial statements as promptly as possible. To Attorney Kaufman’s question, Pension Plans Administrator Martin advised that she does not anticipate any delays due to untimeliness of fund manager final statements. Treasurer Strickland made a motion to approve engagement with Mauldin & Jenkins for audit services as of the fiscal year ending September 30, 2026; Trustee Thornburg seconded the motion. The motion passed unanimously (6-0). 11. Attorney Matters: 11.1. Presentation and Discussion Re: Read Access to Salem Trust. Presenter(s): Stuart Kaufman, Klausner, Kaufman, Jensen and Levinson. Attorney Kaufman advised that Klausner, Kaufman, Jensen and Levinson (Klausner) asked all of its clients for read access to Salem Trust, or any custodial bank, so that Klausner can monitor for fraudulent activity. Pension Plans Administrator Martin noted that the Plan has a contract with Kessler, Topaz, Meltzer & Check (Kessler) for securities monitoring. Attorney Kaufman explained that, if Kessler were to advise Klausner of a potential action, Klausner’s access to review the custodial bank’s records would save asking the Plan for the information. Any potential litigation could come before the Board.

Draft Minutes of the General Employees’ Pension Plan Board Regular Meeting September at a.m., or immediately following the Police Officers’ Pension Plan Board Meeting in the Sarasota City Commission Chambers 24, 2026, 10:30 Page 8 of 11 To Trustee Thornburg’s question, Attorney Kaufman advised that granting the Plan’s attorney read-only access to the custodial bank is considered best practice, and most of his clients have approved the request. To Chair Chapdelain’s question, the memo will likely come before the City’s Firefighter’s Pension Plan Board of Trustees at its October 22, 2026, meeting. Attorney Kaufman noted that, alternately, if a securities monitoring firm such as Kessler notified the attorney regarding a potential action, Pension Administration could provide the information to the Plan’s attorney. To Vice Chair Nicholas’ question, Senior Pension Analyst Anthony Ferrer appeared before the Board and advised that the Plan’s alternative investments, AEW, UBS Trumbull Property Fund, and Cohen & Steers, are outside the purview of Salem Trust. Attorney Kaufman noted that these funds would not be subject to a securities fraud claim because they are not equity shares of a particular company. Treasurer Strickland made a motion to grant Klausner, Kaufman, Jensen and Levinsen read-only access to the Plan’s Salem Trust accounts; Vice Chair Nicholas seconded the motion. Trustee Thornburg asserted granting the Plan’s attorney access to the custodial bank is unnecessary and will vote against the motion. The motion failed (3-3) with Trustee Thornburg, Secretary Griggs, and Chair Chapdelain voting against. Senior Pension Analyst Ferrer reminded the Board that the onboarding process for any securities monitoring firm which represents the Plan already includes granting read- only access from the custodial bank. 12. Other Matters: 12.1. Presentation and Discussion Re: UBS-TPF Fee Savings Programs. Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin noted that, at the Board’s July 23, 2026, meeting, UBS and the Board discussed a fee savings plan. Although the Board had discussed the matter, there was no conclusive approval of enrollment in the program. Attorney Kaufman noted that UBS indicated it could end the program at any time.

Draft Minutes of the General Employees’ Pension Plan Board Regular Meeting September at a.m., or immediately following the Police Officers’ Pension Plan Board Meeting in the Sarasota City Commission Chambers 24, 2026, 10:30 Page 9 of 11 Trustee Thornburg made a motion to approve enrollment in the UBS-TPF Fee Savings Program; Vice Chair Nicholas seconded the motion. The motion passed unanimously (6-0). 12.2. Presentation and Discussion Re: Administrative Expense Budget for January 1, 2026, through March 31, 2026. Board Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin presented the Administrative Expense Budget Analysis as of June 30, 2026. The Board had no questions. 12.3. Presentation and Discussion Re: Check Register for April 1, 2026, through June 30, 2026. Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin presented the Check Register as of March 31, 2026. The Board had no questions. 12.4. Presentation and Discussion Re: Asset Allocation as of September 16, 2026. Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator presented the Asset Allocation as of September 16, 2026, for the Board’s information. The Board had no questions. 12.3. Presentation and Discussion Re: Proposed 2027 Board Meeting Schedule. Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin presented the proposed 2027 Board Meeting Schedule. Secretary Griggs advised that some meetings will be held in the SRQ Media Studio because the Board of Adjustments requires Commission Chambers to accommodate potentially large public comment.

Draft Minutes of the General Employees’ Pension Plan Board Regular Meeting September at a.m., or immediately following the Police Officers’ Pension Plan Board Meeting in the Sarasota City Commission Chambers 24, 2026, 10:30 Page 10 of 11 Pension Plans Administrator Martin noted that there is no meeting scheduled for August. Additionally, Pension Administration is determining when each fund manager will be invited to present and there are currently no managers scheduled for June, October, or December; those meetings will remain scheduled in the event matters arise. To Chair Chapdelain’s question, Pension Plans Administrator Martin confirmed that the January 28, 2027, meeting will start at 10:30 a.m., and the remaining meetings will begin at 1:30 p.m. The Board approved the proposed calendar by consensus. To Chair Chapdelain’s questions, Pension Plans Administrator Martin confirmed that the Plan’s newest fund managers, Allspring Global Investments (Allspring), Newton Investment Management (Newton), and Sawgrass Asset Management (Sawgrass), will present at the Board’s October 22, 2026, meeting. Senior Pension Analyst Ferrer provided statuses on the divestments and investments the Board approved at its July 23, 2026, meeting. Clearbridge Investments has been closed. NFJ Investment Group and Geneva Capital Management are in the process of closing their respective accounts which will fund the placement with Allspring on Friday, September 25, 2026. The placement with Newton is in a Collective Investment Trust which will be completed by September 30, 2026. The Sawgrass placement has already been funded. Chair Chapdelain thanked Pension Administration for its efforts through the fund manager transitions. 13. Adjourn: Chair Chapdelain adjourned the General Employees’ Pension Plan Board of Trustees meeting at 11:27 p.m.

Draft Minutes of the General Employees’ Pension Plan Board Regular Meeting September at a.m., or immediately following the Police Officers’ Pension Plan Board Meeting in the Sarasota City Commission Chambers 24, 2026, 10:30 Page 11 of 11 ___________________________________ ______________________________________ Chair Ryan Chapdelain Secretary Shayla Griggs

General Employees' Pension Plan Board of Trustees Regular Meeting

AGENDA

GENERAL EMPLOYEES' PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING

September 24, 2026

10:30 a.m.

MEETING NOTICE AND PUBLISHED AGENDA

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1.

CALL THE MEETING TO ORDER: Presenter(s): Chair Chapdelain.

2.

PLEDGE OF ALLEGIANCE: Presenter(s): Secretary Griggs.

3.

3. CODE OF CONDUCT: Presenter(s): Chair Chapdelain.

"We may disagree, but we will be respectful of one another. We will direct all comments to issues. We will not engage in personal attacks."

4.

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

5.

PUBLIC INPUT:

6.

APPROVAL OF MINUTES:

6.1.

Approval Re: Minutes of the General Employees' Pension Plan Board of Regular Meeting of July 23, 2026. Presenter(s): Chair Chapdelain.

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7.

APPROVAL OF RETIREMENT REQUEST(S):

7.1.

Presentation and Discussion Re: The DROP Retirement Request of Jose Goitiz. Presenter(s): Debra Martin, Pension Plans Administrator.

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7.2.

Approval Re: The Early Retirement Request of John Nopper. Presenter: Debra Martin, Pension Plans Administrator.

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8.

INVESTMENT PERFORMANCE REVIEW:

8.1.

Presentation and Discussion Re: Genter Capital, Performance Review as of June 30, 2026. Presenter(s): Brian Elliott, Institutional Division Head, Genter Capital.

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8.2.

Presentation and Discussion Re: Invesco, Performance Review as of June 30, 2026. Presenter(s): Dane Hoard, Client Portfolio Manager; Kevin Pope, Director, North American Institutional; Invesco.

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9.

>> We'll go ahead and call the 9/24/2026 employees, Pension Plan Board of trustees regular meeting to order. First, we'll start with the Pledge of Allegiance. America. >> Just 2 of richest one nation under God, indivisible, with liberty and justice for all. >> Next item is the code of conduct. We may disagree, but we will be respectful of one another. We will direct all comments to issues. Next roll. Call. >> Smart Church after laying here, Vice Chair Nicholas hear Secretary Graves here Treasure strict month here. The trustee, Riordan. Trustee, Keeler, their trusty here. Public input. Seeing none. move on to the approval of the minutes of a July 23rd 2026 meeting. We let a few pages last time. really good thing. Where will Thank you for that. Well, a lot of a lot of actions that the last meeting with >> I'll make a motion to approve the minutes of the July 23rd meeting all second. Motion by Vice Chair Nicholas, a second by a trustee Keeler to prove the meeting minutes. All those in favor say Aye. I posed both side that motion passes unanimously. Okay. retirement request. Miss Martin. >> Yes, the first one in your packet is for go. It's we that he's okay. Thank Piers. He worked in the utilities department and he is requesting to enter the drop as of August. The first 2026 after almost 16 years of service and he has selected the pop up 100% to join the new it. >> All make a motion to approve the normal drop retirement requests for Jose going tease. I'll second that. >> So motion by Nicholas second. But rustic, you are to prove the dropper tournament request to pose a cuties. Well, the favor say Aye, aye. Those. motion passes unanimously? Okay. The next one in your packet is for John offer. >> After 25 and half years of he has requested an early retirement at the age of 60. He indicated that he was considering a lump sum distribution. So we requested actual word heat strong serve. To find the calculation which she did in April. And finally August for this month, just last week, John came in and signed his form. And he has speeded select sum option. Motion to approve. A second motion by Trusty Thornburgh second by Trusty Cuellar to approve the. >> time request of for all those in favor say Aye. I posed both said that motion passes unanimously. All right. Moving on to the investment performance First up is Brian Elliott of Gender. Good If you take a look at the boat that we sent over to it'll give you cause a updated as to where we are with the strategy. I just want to kind of start by this is a review for last quarter. So we're of 39 basis points in the quarter a year to date were up 40 70's point its inception were up one 9, obviously a lot's changed in the fixed income markets trying to do my best to update us to where things said today. But just I want to thank were relatively new manager. So we we appreciate the in general capital. And for those of you who may not be familiar with us, we're a Los Angeles based asset management firm. We just crossed a 10 and a half billion dollars in at the end of the quarter, which is an all-time high in assets for us. But just to give you kind of an understanding of what it is we're trying to do. We are. What you would deem is an intermediate, but almost maybe almost too short or intermediate high fixed income strategy. That's a very high quality. But at the same time, high conviction. And in this mandate, you guys have chosen remain a to triple a fixed income. So there's very little credit risk in this portfolio. Our whole concept here is that you're picking us to be credit selectors. So we're trying to go through and find as much value in the market as we can on any given point in time. It is a very active strategies. So we do trade quite a bit because we're trying to capture a relative returns over time and kind of stack that overtime to give you guys excess return. Or general the investment philosophy would be described as relative value. And what I mean by that is we start kind of with the macro outlook on where we think things are going. If you take a look at our forecast, we're kind of implying that we thought rates could be moving up and this was put together 2 months ago. we also in here talked about the fact that we thought the Fed was going to raise interest rates, all of which is come true. So our macro calls have generally been correct. And then we focus really on liquidity. So what we're trying to do is look at just a fixed income issues that are trading billion dollar global issuers so we can get in and out of these bonds on your behalf. So there isn't a premium risk for here. And finally, we do all of our own credit and really trying to put the value in the sectors that were over waiting or and are waiting relative to the market. So you'll see that are over. Waits to utilities actually helps you as well as are over with the financials. But just given a second, if you turn to Page 6, I think this will give you 6, 7, gives you kind of the best snapshot as to what things look like in this portfolio. So I'm a big believer with fixed income and pointing out yield to worst. If you're not familiar with the concept of, you know, the worst, it basically just means that's taking into account the generally what's going to happen to the bond weather is going to call that it's going to put. So it's giving you kind of the worst case scenario and yield we believe that that you're the worst number is the best indicator of future returns. So there's a chart here. that just shows you over time. You're starting yield to worst. We've got a correlation of almost 0.9 to Europe roast active 5. Your return. So in other words, where you're starting with that starting yield equals the 5 year return going forward. The good news for us is that the worst when we structured this account was for 40 today. It's probably more like 5. So we'll to have moved out. But because our is actually under 4, it was about 4 at the end of June. It's come down because we've moved down slightly in this environment. You can see that you're getting, you know, the worst of today over 5 with the duration of under 4. So it's a it's a good Kerry for the portfolio in terms of how that translates for cash flow. I put the forward cash flows out on Page 9. So you can see you're due for a little 37,000 coming up here in October, which will be added to the plan. So with I'm gonna spend a second talk a little bit about the last couple pages which talk about the fad and what we think is happening right now with the market. So this chart here, we're talking about how we think the Fed really only does control short end of the market, that the market really dictates the longer end of the market. And then here we have been calling for the fact that the Fed would raise rates, which they just said. What we've been saying. Is that longer term rates or should be a function of both GDP growth as well as inflation. Expectations, both of which have been running hotter than people have been estimating Atlanta Fed's GDP. Now right now is estimating GDP growth for the next quarter to come in at over 5%. Obviously, the Fed see Ms they got in front of that. They're trying to school down this economy, which is running much hotter than I think people realize. And at the same time, you've got inflation shocks due to the oil increase that's really been passed on to consumers. So you're seeing a spike in inflation at the same time what's happened? Fields have backed off. So for this board. If you guys moved out of a larger strategy into this strategy, congratulations. That was absolutely the right call to make because the shorter end of the market is obviously going to hold out much better when rates are spiking in the longer end of the market. We we kind of put a piece here together to talks a little bit about how bonds move relative to. Rates moving and you can see what we love about this portfolio. Is that over way to the front part of the curve you win in either direction. Rates go up. You're still going to make money. The problem is when you go out to longer duration instruments and year, writes spike. That's where values really get impaired. So you can see we think this intermediate place to be is the right place to be and and that kind of put in here what we thought the implied long-term rate would be at 5.8. I'm sure if you guys read this back in the summertime, that probably seemed outrageous. But it's actually pretty close to where up to 30 years today. And finally, I just wanted to kind of talk a little bit about our benchmark that we're using, which is the golf crowd benchmark. It's got of credit. The U.S. government credit, meaning corporate bonds, intermediate and so we're using that benchmark. But we're we're limited to single-layer better. So drops off the part of credit out of that benchmark what we like about that benchmark is we do think it is more of a core benchmark. But if you look here on Page 15, I show you the duration of both the AG and the golf crowd it over. 25 years. And I think this is really important point that I would mean to to the board, which is the the 25 year range of the got credit has moved by about 0.6 years in either direction. The AG has moved by almost 3.5 years. In other words, if you had gotten into the act when it was at 4 and over time, just how the and it moved out to where it is today. Closer to 6 and a half. That's a much different risk profile. And a lot of that is being driven by the MBS component of the AG. We do on that. Those are softened obviously, mortgages that have been manufactured over the past 10 years all come in 4% or lower. Today, a new mortgage origination is probably 7. So what we didn't like about that and what we were talking about is that people need to be wary of that component because it's basically moving out your duration at exactly the wrong time. So. Again, congratulations on choosing a short-term strategy. Obviously we're thrilled to be working with you. And if you have any questions, I'd be delighted to jump in. So the mortgage that thank you for and this is your first time here. So thank you coming here all the way from California. so the mortgage-backed securities. So I mean, that's that's not part of it's not I was just making the case that had you down to something like that. It's kind of nice to know that you're protected on that duration move, Thank you. So when you take a look today. spread between the 2 of the 10 year is about 25 basis points. That's not a big spread. So we've been kind of moving closer to the front of the curve in that environment. And we're still in, you know, the and in the current quarter. And that wasn't part of presentation. But I mean, how is it just, you know, of? a performance like? You're going to probably see numbers depending on how things and over the next couple days, right around flat for inception training. We've given some of access for some of the money back. But I don't there's a real good chance at all. And I'm still positive since November. comments questions. Well, thank you again. Now you know you need is to come out again. We're happy to jump out. All right. Thank Thank you. We sent a So next on the agenda is a presentation by INVESCO. We have they hoarded. Kevin Pope. >> Good morning, everyone. Good morning. my name is Kevin Pope. And I'm responsible for. >> client service and distribution at INVESCO With Me today is Dan Hoard. Was the scene or climb portfolio manager Invesco thank you all for the opportunity to present its always great to do it in person were up in Atlanta. So not long flight. Is that guy I with a high school fuse few towns over Lakeland. So it's always good to get back purpose we've been managing this core fixed income portfolio for you guys for over 32 years and over every single time period that you look at 1, 3, 5, 10 since inception we have consistently outperformed the benchmark. want to first off. Want to say thank you all for for the trust and faith. And as of the last 30 plus years and I for another good, 30 plus But we get for for the trust in us. A quick update on the firm we currently at or high water. Mark is a firm terms of assets under management was always a good thing growing we continue to vehicle investment from, of course, that is really focusing on equities fixing comment and a private credit If there's ever anything else that we could possibly do for you guys that we would welcome the opportunity in and the conversations with any assets are under management. 2.6 trillion. going to fast forward to today and to talk more about the portfolio. good morning. Nice to see everybody. Again, it's been since before COVID that I was actually years have been on So very nice beautiful walk this morning up and down the bridge there so that I will focus mainly on the portfolio. Don't want repeat a lot of what you may have radio talk about some some of the key, the Magic's, the carports driving this point. We don't really have any disagreements of what you've already heard. Several won't be too repetitive mindful of your time. So why don't we jump to slide for a to acquit? again, reminder of what this portfolio is. This is an intermediate aggregate, the next type or Some core. >> For, for lack of better words we are investing is is investment grade credit, including that's been great corporates which we committed to single-layer better. So we're not participating in the Triple B category, which is the lowest wrong of the ball. The spectrum for corporate center says the toy designed to generate good, steady, predictable income. We're not taking too technical bets on general market risk. We are security selectors. So we do have a full team reviewing each credit that we buy the mandate and ongoing abuse and to make sure that we are adding value to confirm a selection perspective, maybe from an asset allocation perspective. But we're not. We don't typically take march interest rate. particularly important in this environment where rising rates this year has been, of course, the dominant theme across the world, especially in us news market. So that's that's just a quick reminder of kind of what we believe. What we do is life. We're getting the highlight of the mandate just over 15.0. 8 million is the new one for this portfolio. Get Parts of the Bloomberg Intermediate. I could begin next Monday that we are confined to attorneys are Asians of greater than one year, but less than 10 years. So really belly of the curve there, we are permitted to investigate corporate credit on the structure. Key security side. We do have contingency mortgage-backed securities. These you are very highly diversified, secure its, you know, essentially backed by the government's Laker fan and a friend. Back to you. Maybe is a very high quality exposures to the mortgage market. We do have just been another structure, Marcus, like asset-backed securities think maybe are bundled securities of of car loans or student loans, credit cards and that CBS, which is the commercial real sticking point. This is a small part of the index. We do have exposure I'm talking about relative rates are in just a in just a few pages here. Also, I-5 is an overview of the market value. We're where has this 4 point on north past quarter, which is well as information by the way, is as of June 30th. So that's really the most recent official appeared in public can speak to more recent years if needed. But through June 30th, the poor boy marked again 15.4 million. Where do we start the year at 15.7, 7 million give or take and there is reconciliation has to what is driving that change overall portfolio value and he just like to highlight is that management? The component we about 20 basis points is the fact that he's a 0, 2%, is what we charge to manage for Florida and Lee. And then in terms of the other 2 numbers that you might him come at 227,000. This is the yield is in the coupons received by the poor polling from the positions that we don't. And then the investment change that 132.7 thousand. This is the actual change in the price of the box that we own. Again. Magically rates are materially higher this year, but that does the bond prices that weighed prices. The 2 of these numbers offset each other. Essentially if you combine them, that's the total return for the 4 point. So we are total returning positive for the year to date period. So we have good strong income generation to essentially offset what otherwise would be a meaningful had been to 4 points out, uh, higher rates. On the slide. 6 of them. What do these numbers look like? Over a performance Just focus my comments. Bailey on your today just because that that's maybe what what most topical basis. And so you're today the court for his return 0.6%, basis. 0.5, 1 minute the bases we do have 2 benchmarks that we might to show here. We do have the officials say the benchmark, which is a in index similar to what you've heard before we there is a mismatch. The index does have trouble bees and environment where credit generally the performing credits you having your more than what treasuries to, for example, that's a tough component to keep up with that. We don't we're not permitted to best bet. But I do like to show that over a period of time we have done a good job keeping up with that index. Despite the constraints opportunities sets, a performance is good for the product. We also like to Shore reference Index. What does an actual apples to apples comparison? Looks like we do have that intermediate index single-layer better variant of that that we should just city can see what it looks We have performed in that whole period. So apples to apples were I would say a good job performing but stated benchmark given the constraints of and it holds. So again to Just to explain the absolute value total returns here today. Slightly positive 0.6% again, the 2 are saying factors. We have higher the two-year here today. is up 17 basis points just through June alone, 10 years 30 basis points. So a lot of front and rise and raise again. The market is pricing, tighter fed policy. We expecting high coming into the 3rd quarter. We actually got that a couple weeks ago. So the mark with anticipating that's that's what impacts the front-end of the curve right over our higher. We do have inflation concerns. We do have strong economic growth, United States. There is a historic amount of capital by corporations right now to invest in AI and data centers and the whole infrastructure to support that. That is what I would consider is a stimulant to the entire It is keeping us. I'm in very strong character in terms of all the corporate dollars being spent across the whole nation to to build out there today, the center network, which is which is here to these are very, very high quality companies, Amazon, that a good vote, their spending tons of money borrow Ing a lot of money involved, bond issuance that our market, but they're often really attractive to compensate for that. So that's what's really happening in corporate credit. When you have that much supply. We're expecting about double the amount of supply in Twenty-twenty 6 than what we normally would have means. We're just getting a ton of new by by the goes. And so we have Morrisons in the market. That means there's more choose from. That might be reason why may arise from one spreads may for 2. So that's in kind of what's going on way. Yes, as a representative really how strong credits doing so far this year, we started the year about 78 basis points. This is the spread. But you are generally a corporate credits over Treasury. So we started at 78. We peaked at about 93. This was back in March when we had the conflict Iran street closure of oil prices north of $100 a barrel. We peaked at about 93, but we're back into 74. This is kind of in all-time type territory. So markets are very, very strong terms of credit. There's a lot of demand for credit was their lot Africa because these companies are very high quality. The earnings profile from the SNP is yours, for example, is as strong as we've almost never seen it. If you're talking about the S and P the latest several quarters in a row. Now more than 85% of reported are beating expectations. So the corporate environment is very, very strong. There's a lot of demand to buy corporate bonds because we're comfortable with that credit risk and they're paying a lot in coupon for it. That van is comprised of higher Treasury yields. That's what strong a lot of attention to our market. There's a lot of global demand for U.S. bonds because Treasuries are high and we have on spread on top of that. So if you can lock in 5%, plus in an investment grade corporate, that's a good trade for most institutional investors globally. But that central banks, insurance companies, pension plans, it's a good environment to locking good yields. And that's really what's driving rates. What's driving united to ISIS? We come back. The one-year period, 3.3% from 4 point. Lot of this is driven by the one you love that. This is more so driven by the of the 4 offsetting some of the headwinds that we've seen of rates been higher for past year. The same could be said for 3 here. Most of that is dominated by good, strong generation in the 4 point offset what otherwise would be department for fixed income portfolios longer term than it was much smaller 5 year 10 year. This isn't this is impacted by 2022. 23, when we had this historic rise rates, the Fed raised rates, President pace, the market reacted. That was a very detrimental period for fixed income markets. But that is rolling further back in time now, more recently we have high feels been high for quite some time. And so we're generating good, strong, reliable income through investment grade, high quality bonds. That's the previous manager. This has the current quarter looking the current It's it's it's it's out Rates are higher since the end of June let's say the 2 years of 72 basis points since June, 30th, the 10 years of 65 basis points June during this is from there says for Rates are higher as wing of violations. The poor point itself negative 0.1, 3, 8%, year to date of your house. It's a preliminary number. Of course, but versus the 1.0, 36% were right there in line with the index. So we're weathering this up. All the storm. We're right in line with the index. No major issues in the 4 point. This is truly just great department weighing on valuations for the portfolio. Your day terms of spread case rates, rates of some our tremendously spread. We need started at 78 were socially right at 78 now. So there's really in the same environment not masked, even credit and credit is still very strong. Again, that demand component anytime you get a big backup in rates, it seems like there's plenty of demand to support it. So credit spreads remain materially type, which is a good thing. It's the equivalent of saying equity markets at all-time highs. When I see spreads are tight. It's the same thing and to come. So slight. Number 7, moving on in form of a question on that. Just generally performance was I can go through the next several Friends of the couple just be mindful of the time. So. >> Slights, is the attribution stories are just what help did. What hurt? >> Through the year that >> 0.6% versus 0.5. There's not a lot to explain in terms of what helped when you're simply just in line with exit of the tactics like that, that make sense because the rate environment so volatile. It's so unpredictable that taking large interest rate. That's we're trying to just hit. Singles are trying to incrementally value for security selection. So that what happened anywhere where you're exposed to The ration was a negative contributor, anywhere where you are under integration in this apartment ends up being helper. And from a corporate perspective, we do over which incorporates generally speaking, Mister Corporate have outperformed. So