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Police Officers' Pension Plan Board of Trustees Regular Meeting

Thursday, June 25, 2026 · Government meeting record

The 30-second read

Recorded outcome

The Board unanimously approved the meeting minutes from May 21, 2026.

The Sarasota Police Officers' Pension Plan Board of Trustees approved a normal retirement request for police officer Patrick Robinson, elected new board officers, and reviewed investment performance reports from Franklin Templeton and JP Morgan Asset Management at its June 25, 2026 meeting.

Why it matters

Police officers enrolled in the city pension plan and local taxpayers have a stake in the fund's asset allocation, investment returns, and administrative leadership.

What happens next

No later meeting or follow-up date is stated in the reviewed record.

An official outcome record and a transcript or captions are published for this meeting.

Captured actions

15

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5

Source artifacts

3

What changed

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5 captured items have a publicly linked outcome.

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People and votes

Grant Hudgins

Present at this meeting

The reviewed record lists this person as present but does not attribute a motion, statement, or individual vote to them.

5 routine or incompletely attributed roll calls stay in the official record rather than overwhelming this summary.

Transcript and record text

Closed captionsWhat was said at the meeting, transcribed Sep 21, 2026. Speech is not a decision.
  • No speaker turns were supplied with this transcript.
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you could me. A little bit of this year with so Eastern time this. To People called and talked to 45 to second >> You know how long >> and it's and it's >> Welcome to open boys. Audio services. Please enter your conference room number followed by the pound or hash fine. Conference room number excepted. If you are the organizer press to start he other please enter your pick a load off. ? ? ? >> For menu is available. Command press star one. There is one other color on the call. >> And vaccine from like that, grant can hear me just checking my. >> I mean, it put you back and there are a couple other people calling in. You might be able let just let me start 6 a. >> think you thank you. And so. >> well, I I experience as a kid. I school year. That I even think it was >> Late the day. >> A minute to spare sent >> Call the service of the police officers, pension board trustees, regular meeting of 6/25/2026 0, 8, 15 hours first on the agenda would be jewel of allegiance. >> What they do to and states of America. stands one nation for all. Next would be that you pleasure civility. We may disagree, but we will be respectful to one another. We will direct all comments to the issues. We will not engage personal attacks. Next on the agenda will be rolled called ever. >> Chair Beatty president that Vice chair us president secretary Treasurer, Great Trustee, Hudgens Gertie Hudgens. >> Trustee, Grant Hudgens. >> That's where public see, we have none. Next will be the approval of the minutes for the regular meeting of the May 21st 2026, have a motion for approval. I make a motion to approve units. We have a motion. I'll second motion a second. Chair Beatty. Yes, vice smegal. Yes. Secretary Treasurer Griggs. Yes, I'm sorry. Haha trustee, Jodi Hagins. >> Yes, just a grant Hudgens. >> Next on the nomination board officers. Before we get started, I'd like to make a comment on I've been on the board now to be 30 years. Okay. >> And I've chairman. least 4 times. Another always had. Jo Dee will probably relate this to. I've always felt chairman should active elected member. More. So if we can do it. they are elected by the body. And we are appointed. All the rest of us are point. So that's in this Tyler is chairperson he's now over 2 years. And I've always felt that it takes at least 2 years for a new trustee to understand. And kind of relate to the direction of the board and the personalities of the board because we all we do have a so that's why would nation Nicole, the chairperson nominated. >> The group, I would a voice from above. >> So far as I'm we have motion as the chair of the police, pension board. I believe we have a consensus to have a consensus, Jodi Grant Grant. >> Yeah, yeah. >> So we have a consensus. I think we can move forward in the regulation. So you're not touching. >> But they >> And next would be a nomination of Vice chair. >> All right. We have a selection of vice chair for the police officers, Pension Board. Anybody have any nominations. >> will nominate I'm a majority. >> Your but I cannot I could. I think that I can not accept it. I just. Half of the meeting that would be. Doing arc and doing Honestly, I just hope like this >> understand I would nominate. >> I would this if Tyler, he in Any guidance or recommendations or anything in. But Lilly known me for advice. >> So with that, I just I've made the nomination Mister. They need to be the vice chair and we have a second initiatives. I'd second. Okay. And then we have a crisis is too make that determination. >> All right. We thank you, sir. >> And nominated for secretary And it can only be one >> so I will nominate show you and I'll second that. >> All right. and nomination to have Shayla Grigsby. The said that a treasure. You have a consensus on that. >> have spent yet. Thank you all. want. >> Yeah. The way welcome come to an end. I know Thank I appreciate them. >> All right. We'll move on to the next agenda item or to be a return, request. No request of Patrick Brabant. A Patrick Robinson. >> I'm Patrick Robinson is retiring at the age of 40 years and 4 months after 25 and a half years of service as of May, the 7th 2026 and he has requested the 50% to join a new tent pension option. And the motion to approve a second. Chair. Ross Nagle. Yes, vice chair Beatty. Yes. Secretary Treasurer, Greg. Yes, trustee, Jodi Hudgens. >> Trustee, Grant >> motion. Motion are. And the motion passed will move on to investment performance for Presentation discussion by Franklin Templeton. Do we have David Cole? Frank? Mike Boone thank you, can you just to introduce yourself for the record? course, 20. Good morning. Thank you for having us. And today, my name is Mike. You I am client relations manager at Franklin Templeton Beason R C, Petersburg office. And I'm here today with call. He's the senior client portfolio manager. >> He's also facing our St. Petersburg, Florida office. You actually giving you the update today on your Franklin. U.S. small cap growth strategy that we manage for the city of Sarasota police officers, pension plan. Before turn it over to him. I just want to thank you on behalf of Franklin Templeton. I notice that we've been doing with or how things are having the privilege of working with this board for 20 years. And so you do really, really appreciate that. So at this time, I'll turn it over to my colleague due to cold and he can provide you an update on your portfolio. >> Thank you, David Cole Cpm with Franklin Equity based out of St. Petersburg, Florida. covering the Franklin Mint Small-cap growth strategy. So first of all, I would Mike's comments. Thank you for your continued trust. It's something that we take very seriously and we're honored to be. Part of this group and helping. So I'll cover 3 different sections today and investment strategy update and review first. We'll just recover the overall team and the strategy overview. We've had a couple changes within the investment management group. Also with the portfolio management team. And then just briefly review the strategy. Second, we'll talk about performance and current positioning of the portfolio and of the strategy. And lastly, give a little bit of our outlook going forward. So starting with the team in strategy, overview all start with the investment group. We have had some changes, formerly we were called this an investment group, Franklin Equity Group. We are now Franklin Equity as of January 2025. Most of that was an internal Franklin Templeton Change. It was the coming together internally of 3 teams at Franklin Templeton, Franklin Equity Group based out of California Mutual series based out of New Jersey and Brandywine equity based out of Philadelphia. The highlights really for the sport to understand is that we have a new leadership team. So our is now Christian Korea. He came over from the Franklin Mutual series based in New Jersey. He was a former there. We have larger scale. We are now as a investment 180 billion dollars in assets under management which gives us a lot more scale in the marketplace. And then most importantly, I would say for this individual strategy that you work with is you have increased resources for the team to work from. So now we have 100 plus investment professionals. In our group. And really 35 sector based analysts that this small cap growth strategy can pull from. So that team has grown given increased resources. So that's a positive there. Moving on to the small cap growth team had a couple changes. So Mike McCarthy was the longtime portfolio manager. He retired at the end of last year. Brad Terrace is now a portfolio manager. He's been a portfolio manager on the strategy for a long period of time. He's retiring at the end of September. So gets about 3 months left on the strategy. The current PM's after September will continue to be JJ Schwarz. He's been on the portfolio for a while. Now. And then we'll be adding JP Scan Daily Dose. This can be found on Page 6 of your packets JP Scan is PM on our small Mid Cap strategy and will be added to our small cap growth. So well, Ed, some continuity there. Really brings together some expertise in many different names that are in the small-cap growth strategy and also. Worked with this team for a number of years. But now the unnamed PM. And so a couple months ago, then you also have who is a consumer analyst and supports the team. Not a portfolio manager and Ryan who is on the private investment side who also supports the team, but not the portfolio manager and they bring valuable insight to the team. The strategy can be found on Page 7 of the pack. It. review just the philosophy and the strategy. I think it's very important with those changes at the investment group level. And at the portfolio management level, nothing has changed with the overall philosophy war strategy of the portfolio. I will continue to manage it the way that we have for many decades now, the philosophy is that we still believe strong risk-adjusted returns can be achieved from finding small cap companies with sustainable growth. A reasonable valuations. That's what drives us every day. And our approach to this is three-pronged. So we're looking for growth in these companies, quality and valuation. Us. >> Sustainable earnings and free cash flow growth. Well, targeting current and emerging leaders of the market quality is one of our most important screens. And really we're looking for high quality companies, meaning strong and improving competitive positioning in the marketplace. Talented and experienced management teams, of course, healthy financials as well or very important in the company. So we own in this portfolio, the last one in 3rd problem of our approaches valuation. looking for companies, of course, are underappreciated in the marketplace and therefore, in our opinion, undervalued. So that's our three-pronged approach. Nothing has changed Reiterate that point. Moving on to performance and current positioning, you'll find this on Page 13 of your packets. So if you focus on the bar charts at the top of Page 13. You'll see that the year to date numbers. So Ytd and the one year numbers the year to date the strategy is up 10.7, 3%. That is through the end of May. So may 31st. And over the past one year, the strategy has returned. 29.1 3%. So extremely strong. Absolute returns in the strategy. You will notice, however, that we have underperformed our benchmark over both of those periods. And there are a number of reasons for that, which I can go over here briefly. So the first reason for that and the biggest overarching reason for the underperformance first, the benchmark is that over the past year and year to date, it's really been a low quality market, meaning that a lot of the lower quality companies in the marketplace and in small cap Growth Index have outperformed. What we've seen was this aspect was really evidence we looked at some factors that were driving the market last year and year to date and some of the biggest factors are company qualities that have been driving the market for factors like low sales growth. Hi bankruptcy risk. And lo free cash flow. We just talked about our quality screening. We're looking for high quality companies. None of these. Things meet our quality metrics so we don't own them. We don't feel that you want to own them over the long term and can be typical of the marketplace. Win. There are certain. Aspects. For these companies to Raleigh and do pretty well in the short period. But typically they'll last for a long period of time. So that was the second point on maybe a bit of the underperformance. There was also a big move in the materials sector of the benchmark, which we're structurally underweight, a lot of metals and mining stocks are in the materials sector. If you recall gold prices move significantly higher last year, which moved the metals and mining stocks up. We do not feel that these are a long-term sustainable, great business models. And so we do not invest heavily in in the portfolio. So that added to a little bit of underperformance. We also didn't own Bloom Energy. This was one that we did some research on and we decided not to invest. And regrettably it was something that we quite frankly just didn't see the advances in the product line that they had made. They have become a artificial intelligence winners in create fuel cells sit next to buildings and thought to be a big winner in I infrastructure build out as there will be a lot of need for those a type of fuel cells to said. That's next to data centers. And we miss that. And that is up significantly in the benchmark because underperformance. And lastly, many crypto in quantum computing stocks performed well as well. Once again, those are speculative to us. Very volatile and not great businesses in our opinion. So we're not going on them heavily in the portfolio. I will say this. This type of underperformance first, the benchmark has happened about 4 times in the past 20 years. And each of those times the portfolio over the subsequent couple of years has outperform significantly. >> Going forward, obviously, we can't predict the future, but we're sticking to our process of investing in high quality, sustainable growth companies with good management at a good price. And we feel that that will work over the market cycle and that could be evidence. If you look at the 10, 15 year and since inception numbers on the bar chart at the top of Page 13 where we've outperformed the index over each of those long-term periods. Next will move to positioning. If you turn the page Page 14, you'll see some of our current positioning. So our areas are healthcare industrials, information, technology. Those are 3 largest sectors that we own in the portfolio. So quick comment on health care. We've actually increased the sector currently that is a good example of us being a little bit more contrary and in our growth rates. And looking for companies that are undervalued. There's some cyclical pressure there. Some regulatory overhang, which is caused valuations to look very attractive for us and continue to see some high quality companies there. So we've increased our exposure in that space tech. We've actually reduced are overweight here, as you've probably seen over the past year year and a half, some software companies have come under pressure due to a I build outs. And so we've actually been reducing that exposure to reduce the risks there. And then materials. We talked about a little bit were underweight and materials due to the exposure to metals and mining that we just don't feel those are good, sustainable long-term businesses and they can be highly volatile. Concludes that review on performance and we'll move to outlook very briefly. So I think why we're very positive on the strategy going forward and small-cap gross in general growth companies in general. Is that the markets really been heavily driven by large caps over the past number of years. All of these large caps have grown to mega caps and they've continued to rum. And so the valuations on a lot of those large mega caps have really grown to be outsized and smaller caps have not participated as much in that performance. That means the valuations and small cap growth companies look pretty attractive at this point. Also, you don't valuations alone. Don't create great investments. So we need to see the growth in earnings. The growth in revenues. And we're starting to see that problem throughout the economy. And moving into the small There's a lot of positives happening in the economy with the city. I build out and a lot of revenue growth for especially a lot of the smaller cap companies that are coming through. If you can invest in high quality management teams through that, they can help reduce costs, create efficiencies. Well, they're increasing revenues. You can start to get that earnings growth you get their earnings growth, you get stock price appreciation. So those are the companies were investing in and we'll continue to do that with our growth quality evaluation framework. We feel that we're positioned pretty well going forward. Concludes my update of the board has any questions. I'd be happy to take them out. anyone have any questions? >> Question play. Check out of the They >> Several years ago, I recall we had in the 4, O, you know, p o by the name of rent the runway. And there were some drama surrounding I was just curious bill in the portfolio, is maybe what the valuation is a game back. Its initial die. >> Rent the runway was the name of the company. I am not sure if that's still in the portfolio, but I can double check that for you and get you that information. >> I have. if you could, maybe if you could check on that and get that would be great. Absolutely. Will pass it on to Denver. >> questions. Thank you. Thank you. All right. Now we're going. I will move on to the next presentation and discussion JP Morgan Asset Katie, are you on the line? >> I'm like, Yes. Can you hear me Thank you. >> You go ahead state your name for the record. >> Absolutely many Katie. Him in the Morgan Asset Management. Really appreciate the opportunity to be with you all today I worked there's leave the well of the number the State of Florida for the last 4 and I'm here with my colleagues and our built in America not ony people and brought who walk through perform your to property fined about that with for some form of do want to thank you for the long ending is not been all that investors in 2000 and I are more than 20 years. The greatly appreciate the long-term partnership. And when with you last year, we really talked about kind of the infections point that was taking place in the corner real estate market. And please report that will continue here on the positive that really both real estate generally from core perspective, but also the property fund in particular has relative, a performance that we've able to generate or are you going to things over to you today? Not just to confirm their for about 15, 20 minutes about the weather for all of you. A great woman turn things over to my colleague Dana. >> Megan, thank you for having Katie 19 might even say need. I'm investment specialist on the real estate. America's in covering the out the N. I want to cook a stop sign. You know, you kind of step with us for a long time with the fun and the fun of on all cylinders during recovery. So we're excited today to cover. will be up a fight. The performing the Gulfport Outlook and our position. I'm going to start the publication on Page 13 of the estate. And that they are going want to provide a refresher on what is sure to get property fund or ETF of you. Call it. I have to Morgan Black should open coral a fun. It is one of the largest and longest tenured audit people and wearing a top manager, the United States on the left side of 13 is what P s is known for, which is having act that the government, the patient and the best market. The fund is the gold standard of quality. And what that means is that are at heart believe in command, the highest rent. But just an example of what that means that for our dominant day, our office have 40% higher rent and 10% higher occupancy rate, the Office's audit. carbon On the right side of the page and what we are growing, which it should Part of the portfolio is a high-growth, extended sectors. We like that are why and democratic in sectors with low cap fact and wow, a pack. But for example, work for extra outdoor storage is factor with strong Demand dynamics. We're all first in built for single family with added supply with the high country sector. We don't kill in the sectors to it to the partnership with our partner and what we have, the combination of having the best acts as a conditional sectors on the left side of the page and though that that the sector allocation properly on the right side of the cage have been incredibly beneficial for has a look. They recovered from right, the period. On the next page. Page 14. I'm going to talk about tournament. We are laser focused performance and we're coming up. Another quarter of department on the left side of the page in the 1st quarter of 2026. At over perform an audit be by 11 basis points. That makes it 8 consecutive quarters where we top of index. It will be on the bottom. The people in the bottom left part of the pace that all sectors or contribute positively people What's interesting is that office had on sectors of the fun. The last report that strong in office that the jury by late next But in 2025, we've 0.2 million square feet, obviously to 10 in other in the eye has been factory. So in town center, which is in on valley with I 100%. We see and what we saw in that is that, you know, the leases be fine. 6 months ago, the rain grew like for or the 8%. And see if you concessions as well with office leasing we backed off of on the back to 23. It will not be truck ran out of the but the particular to at T S because of office at that that we don't back to Lee worked off the week and I talked about that. Is That has about 58 points with better appreciation that we're going to get on fun that year. As he been a top court during the recovery on the right side of the We point out of the bye or 2.1 basis point that a lot we're. Retail. I think the on the bottom on the bottom right of the page and reason that point that that is true for all on the but are different that, that are the largest contributor to apartment, our but the clock delivered 210 basis points of annual for the last 5 years. And you see on the bottom right of the page where we have to get total 2.2%. Well, you 1020 to 25% at the bottom. We are all that I only just recovered. 2.2% of that But we are at the very early recovery. On Page When I started, I kind of talked yes a also there and the pay is the example. Fire that show you what we've accomplished in the last 2 years. recovery at the end of leader appointment transactions with and fundraising when it comes to the last page about the only 2.1 basis point of in the last 2 years. I was 78 point higher than it not be. We executed markedly in transactions across our position and the position the issued last year. the past we've invested over 1 billion dollars. There is a that would be high growth extended sector. 5.5 billion last I was more than doubled the average e no other point completely closed our transaction activity and 5.5 billion on one percent of Kerry, which showed you that our transaction show that are at rally appropriately. And these transactions that a lot of the river over 5 billion in for our client the last year. But that is a contact at PS is about 12% of I B but provided 25% of the look. We up the entire that. Are investors are confident knot because of our track record and we want raise the most of any are one of the last 3 years. We rate 2.4 billion in capital over the last 2 years. And that has put enviable position of having dry powder. opportunity at that. I did talk to entry point. I'm in the outlook. I hate to see. Foreman says that are and we are well positioned rear by the end of the year. We live with all the people the rest of the year instead appointing like we have been doing a lot are would still be on what will performance by the end of the year at the couple of public order. But we back that people can performing for 3 key reasons. The first is we have strong and vetted and a wide group, but annually for the next 3 years. And when I talk about that in a white grow, over 90% of contract to a year one and 84% contractual in year 2, 3, The second reason to be in She ation from that. The only of a particularly thing that we find last year we have done a tremendous amount of we've been. Are the polio. A lot of people at the what is the impact of AI expected to be but it's actually quite positive fraud. I have been driving demand for office in our at Bay Area Silicon Valley, but at count them on talk about a few minutes ago, it took he is 100% leased and what makes that at the of black that in the heart of Silicon Valley. But had at that, the transportation for the San Francisco and then from the Bay area, easy for employers like that are kind track he for. They to build up capability. And trying to bases in other of which is in the Bay area that leave the next pop market rent. We just finally you can kind of statement but better The best money. I double the market rent. That the capital plan. Want to be there because miss Bay But would be can it not right now. I caught and open AI headquarters there. So a lot I knew I talked to area and the 3rd reason you know, he's on the right side of We invested 1 billion in the last We grew our we another 1 billion investment for 2020. It sector and the are both the industry pipeline. But we 2 Million. We're put industry bill it. many factory pendant. It issues that have benefited from government the for critical industries for advanced manufacturing error. 8.10, the other development projects. But what we've got is by before we even start building in we have a property very bank that we're building out purchase. Many factors located offshore, but now they're coming on shore. I think that the I been in that area, to it right here the night, United States. And you we're building out that would be for them. And this is the really popular made by for that work with a lot about how company and Long California about with part we're building the largest industrial building, which is about 1.5 million square foot. This is going to be what I many factor of them. They are using AI to build out the end. Put it right next to the Long Beach Airport, though, actually one of the key reason for the what they told the location and they're building with that. Is it and open government official? They can really get out the car mike at Beach Airport walked right up to the bully. We checked that generate on the by 1.5 billion for roads over the next 20 years. And these industrial, they're going to drive 100 basis point better appreciation annually for the next 3. It the has 2.2% development while most of our peers in the and have not. And we're going to do all this eyes. If you're walking provide liquidity for that for that to get. On Page 7, you cover our position. And I really quickly, I know that something quite busy. But if there's one thing I want take away is that our sector allocations are created and they're driving or put it If you look at the bars on the top right, both sector allocation and the period at the allergy the election. I got to perform it. And what that means is that we own the right at that in the right area. So on the left are these aren't free spectrum. Our retail retail portfolio, help. But we let that are of a second to We own 2 of the top 10 night 8 and on average are to all have that the higher But the pier. Pretty distraught. We have an intentional underway as we don't expect of them. And for my view, where out the comeback, any time what we're doing with the were both now are out Haitian. We're rebuilding our Through end of that, there for example, of the stronger which I mentioned are like truck terminals. That is about 20% of strategy today. And we like the better they might be warehouse to become mission critical. The supply and that's why we really feel it in the future. This is the right thing to bring trial. Police profit we are modestly overweight, but we've got a lot publish an article for the 5 years putting revealed 2 thirds of the today. It is about one-third of our football, you know, and we have left in on additional Erie so well is the best out that they're going to be different. Looks like the I do to from connectivity in office just last year alone. All right. That is that there's we have that would 2 in the last 2 years. I actually want to buy the things that I said that the AP. So on the top. Right of the page, we have allocation send it back to last 2 years that we've done that incredibly thoughtfully and intentionally. If you compare the audit the on the bottom of what side of the cage that chart back of the great public art. We are actually and around like compared to We're doing it. We are very intentional and we're not investing everything the sector. For example, you see that 4% of all of the on the Senate that there is life I in it which we had not at all. And that actually have been a head when woman to cross appeared that. But we're glad we're not in the sector. We've capital creatively, right, that the joint venture partners and we're put your pride in that over rent in the highly fragmented sector. What local mom and pop operators. So it's very unique for us. I would be there for a fragment, the sectors that we're able to build scale and becoming a create operational and capital efficiency and on the spot on the bottom right of the page with where distraught or said that If you look at the effect of the suspected that we've chosen to play in, if you just look at the pictures, we're coming out of the pier, which speaks to the point he has had in the period at the election. On Page going to get on with the men are at the election. When I started out that the U.S. is the goat, better quality. A lot of times people at that, though, the what about me, what that means is our at that are commanded higher rent and have Iran that the pier that. Are all the football you have the pair that far. I public. read Pinion that gap quality between us and our peers. Lee, the on the right side of the page. You see that. That is true across multiple time period. I don't hold out on Page 20. So and yet they again, my foot of the work. I do us find at this point have calm at very strong 3, we have laid the groundwork to continue to lead on performance. The proper pair that with the unique worked that out pipeline, the event and a white growing the guy opportunity to bought part to make opportunity divide that we be doing and where I am are kind of the 1 billion to do that. I was a tie for the best of luck to enough unlike at and that what big question. >> Any questions? It great. Put question. >> is to put a lot of confidence in the office space, but you have rented to 100% and I-2 technologies in the Valley. And I don't know that I share the same for that. in Philly to vulnerabilities, one I continued to perform the way that everybody hoping that it doesn't to the AI days and go home Bally, I know historically the technology company's been there. But it seems that there might be other areas. You know, I thought area where we're the o I'm curious to know when you're out looking, you're confident that those are going to stay there and how will be affected if either AI Underperforms or just decided to move out of value or about company's considered. >> Yeah, that's a great question. I think for us our we have we have all over the country. Were we to see that we can pray. I have been in Valley on the New York else going on. the areas. I would say for us where we are doing for we do, we We really like bridge on our information advantage and poor. Get so an example of one of the AI company that we find we do a lot of due diligence on and that one of the actually, they put up more in the, you know, if if the the the and the company typically as I can. The governor signed that Big Bird we invest in the company all. And we hope make sure ready to every company that have a hold in the before we finally with them. But the way that I think you did, you bring the really great point on value that about But I think our it really has been making sure that that we're fighting. We're doing private utility from them. Even our information advantage of property in part to come on tape to make sure that the right tenant that may be a long term and >> so all of the AI technology that you please to are revenue and income. >> from I did read in part to get revenue and these public, our company like a late stage in terms their private died in 80 people. >> Okay. Thank you for your time. I appreciate that. >> The NAV, I have little bit of kind of piggy back off of You, you know, I mean, you to some very confident in I space what percentage of your office space are you leasing out to those companies? >> I don't have that him right now, but I can get that view. I think primarily what we were talking about it that the reason behind last year, the foot have been in April with AI and but we hope that does. But then we are back they're doing advanced manufacturing as well. So not even all that. In part 2 million I didn't. But I can get back to you on the on the DOT are a type of play day. I kind okay. >> And what you to up one, did you mention 100% in silicone value I? >> That is on the one at different parties are 20 goal town center in Silicon Valley that that is the Cooley says we that that is 100% of I find that people want I want to go out that there. for example, or kind of vaping were kind that, the venture capital firm head of the P. >> OK, thank you. Sorry cutting off power. >> Yeah, no, that's fine. I just little clarification. And then with the spaces. are they consider multi-use you know, with some regulators coming down some of these data centers and regulations on what they can and can't do and jurisdictions. >> Are you able to transition the spaces if if there is pushback? >> I believe that we are not going to get them 3rd, actually, though, the way we are played idea sense of space, but particularly if we that we're not on opposite the day, I think the build out, we think of it more like 48 for going come together collaborate. I do that we're not I'm these are not differences at all. I think your question is, though? So when I talk are are back to example that is located within youth development, though their department, the shop's a restaurant, I think that are in that area. I would the wife of track to And finally, is there because of the development they make you get a nature of the but we are not many the fire. >> Okay. Thanks for the clarification on that. Anymore. Questions. Thank you, too. >> Thank you for having us. >> And we'll move Really appreciate the patience. hit the pieces that you show with with the tradegy as a not a military. We do feel confident our position our ability continue to outperform continue through beginning to fade in the next Bill. Gates like to thank you again follow up on I your question. But if anything, all combat up the don't have reach out. >> All right. We appreciate it. Thank Have a good one. And if you we're move onto unfinished business, we have any. >> Doesn't care. We have any new business. And do we have an attorney on the line? should now? >> We do the morning. Tyler, you good and you have any business today that any of that. Yes, we can just my brief. Yeah, just to break things and following up with council. They are planned to one more deposition >> I'm a doctor. presently set for July 24th. After that they should be ready to proceed hearing. So. I'm probably timber, meaning more We will schedule that's going occur. >> And yeah, well, probably in the think probably a at 3, 3, hours or so. So I would get with a Denver woman ready, set it and it will make a determination to get the next meeting as to whether or not you want to have it on a regular meeting date or whether you want to do it, especially being a time. Whatever your pleasure is. >> I will get you all of the materials. I'm sure there are a bunch depositions for view prior to the hearing. So we'll get all of that to you. Well, in advance copy of the transcripts from Council of next couple of weeks. >> And then we will just informational memorandum summarizing case and case law and we'll take it from than that. reminder that the financial disclosure called next week electronically. And so we do and ever can just make sure that everybody is filed timely. good there. Nothing else to report morning. But 70 questions. >> I'm thinking us have questions. Thanks and then other matters. Denver Martin. >> Yes, in your packet, you will see the asset allocation after we did. Our cash analysis to all the 2.0. 9 million is not all for 2 Million. We had transferred to the R and D account which makes money a little bit more acessible when the market turns down, we get depleted that pretty much a couple months ago. So 2 million of that will be in the R D accounts. Still invest is still earning money but easier to get to it. We need to. Then I had a couple of other things. Did you have questions on the asset allocation? The police officers pension fund is due to present a city commission on July 6. Now that we have to change and the officers. Who will be present to that. guess that would be, you know, you pay. Are you located in? >> Available to everyone. So I mean, I could be available and just have to sit down, get everything squared away. >> have a few minutes after meeting the way and Larry, be there with them now. No, you stumble word. You know, just the board. And that's going to be And myself course. But and we have a date on that. was said be in the morning. We can start at Let me know. Yeah, I don't use the know. >> Should be available if not, then the vice chair with degree. >> haha. >> I get nominated I don't show up. >> I slid out of right to pouring of. The other thing is the state report. It hasn't been approved I got a letter back from them. it's been about 2 months ago saying that I needed to submit the audited financial statements with the packet. I went back and reviewed and I done that. So ICE responded to that email. I did not hear back from. I've talked to them twice and they assure me that we're still in the queue. So. So I don't anticipate any problems there. That's what read that when that report is approved, that that's what really says. state insurance premium funds. And that's all. >> And with that, checks go out. Probably that. Out of the facts and go for the tax money. Usually go out sometime in August. So no, no, concern there at this point. >> With we're enjoying the meeting. >> It is 09:00:04AM.

Minutes textPolice Officers' Pension Plan Board of Trustees Regular Meeting — Minutes

CITY OF SARASOTA DRAFT MINUTES OF THE REGULAR MEETING OF THE POLICE OFFICERS’ PENSION PLAN BOARD OF TRUSTEES OF JUNE 25, 2026, AT 8:15 A.M. IN THE CITY COMMISSION CHAMBERS Board Roster: Chair Tyler Rossnagle, Vice Chair Ronnie K. Baty, Secretary/Treasurer Shayla Griggs, Trustee Joseph “Jody” Hudgins, and Trustee Grant Hudgins. Trustees Present: Chair Tyler Rossnagle, Vice Chair Ronnie K. Baty, Secretary/Treasurer Shayla Griggs, Trustee Joseph “Jody” Hudgins (telephonic), and Trustee Grant Hudgins (telephonic). Trustees Absent: none Staff Members Present: Pension Plans Administrator Debra Martin and Pension Specialist Peter Gottlieb Others Present: Attorney Stuart Kaufman (telephonic). 1. Call Meeting to Order: Presenter(s): Chair Baty. Chair Baty called the June 25, 2026, regular meeting of the Police Officers’ Pension Plan Board of Trustees to order at 8:18 a.m. 2. Pledge of Allegiance: Presenter(s): Secretary/Treasurer Griggs. Secretary/Treasurer Griggs led the Board and attendees in the Pledge of Allegiance. 3. Code of Conduct: Presenter(s): Chair Baty. Chair Baty stated for the record, “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. Pension Plans Administrator Martin called roll; Trustees Joseph Hudgins and Grant Hudgins appeared telephonically. 5. Public Input:

Minutes of the Police Officers’ Pension Plan Board of Trustees Regular Board Meeting June 25, 2026, at 8:15 a.m. in the Sarasota City Commission Chambers Page 2 of 8 None. 6. Approval of Minutes: 6.1. Approval Re: Minutes of the Police Officers’ Pension Plan Board of Trustees Regular Meeting of May 21, 2026. Secretary/Treasurer Griggs made a motion to approve the minutes of the Board’s Regular Meeting of May 21, 2026; Vice Chair Rossnagle seconded the motion. The motion passed unanimously (5-0). 7. Nomination of Board Officers: 7.1. Appointment Re: Selection of Chair. Presenter(s): Secretary Griggs. Chair Baty recommended the position be filled by a trustee who is elected by the Plan membership and nominated Tyler Rossnagle to serve as Chair; Trustee Joseph Hudgins seconded the nomination. The Board approved the nomination by consensus. 7.2. Appointment Re: Selection of Vice Chair. Presenter(s): Secretary Griggs. Chair Rossnagle nominated Trustee Joseph Hudgins to serve as Vice Chair; Trustee Joseph Hudgins respectfully declined the nomination due to potential scheduling conflicts. Secretary/Treasurer Griggs nominated Ronnie Baty to serve as Vice Chair; Chair Rossnagle seconded the nomination. The Board approved the nomination by consensus. 7.3. Appointment Re: Selection of Secretary/Treasurer. Presenter(s): Secretary Griggs.

Minutes of the Police Officers’ Pension Plan Board of Trustees Regular Board Meeting June at 8 a.m. in the Sarasota City Commission Chambers2026, :1525, Page 3 of 8 Vice Chair Baty nominated Shayla Griggs to continue to serve as Secretary/Treasurer; Chair Rossnagle seconded the nomination. The Board approved the nomination by consensus. 8. Retirement Requests: 8.1. Approval Re: The Normal Retirement Request of Patrick Robinson. Presenter: Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin advised that Mr. Robinson requests a normal retirement effective May 27, 2026, with 25.5 years of service at age 48. Vice Chair Baty made a motion to approve Mr. Robinson’s normal retirement as requested; Chair Rossnagle seconded the motion. The motion passed unanimously (5-0). 9. Investment Performance Review: 9.1. Presentation and Discussion Re Franklin Templeton, Performance Report for Period May 31, 2026. Presenter(s): David Cole, Senior Portfolio Manager; Michael Agnello, Client Relations Manager - Business Development; Franklin Templeton. David Cole and Michael Agnello of Franklin Templeton (Franklin) appeared before the Board and introduced themselves and their presentation and thanked the Board for being invested in Franklin’s Small Cap Growth (SCG) strategy for 20 years. Mr. Cole advised that in January 2025, Franklin’s internal departments, the Franklin Templeton Equity Group based in California, Franklin Mutual Series based in New Jersey, and Brandywine based in Philadelphia, merged to become Franklin Equity, and its management is detailed on the Franklin Equity Organization page of the materials. This merger significantly expands the resources available to the SCG strategy. On the SCG investment team, Portfolio Manager (PM) Mike McCarthey retired in 2025; Brad Carris will serve as PM until September 2026, when John Scanalios, who is currently on Franklin’s mid-cap growth strategy, and JJ Swartz, will assume co-PM positions. He noted that Sara Araghi is not a PM on this strategy as indicated in the materials, but a consumer analyst.

Minutes of the Police Officers’ Pension Plan Board of Trustees Regular Board Meeting June at 8 a.m. in the Sarasota City Commission Chambers2026, :1525, Page 4 of 8 Mr. Cole reviewed the page titled, Investment philosophy and approach. Franklin’s long-term philosophy has been to invest in high quality, small-cap companies with reasonable valuations and sustainable growth potential. On the page titled, Investment performance, Mr. Cole explained that the portfolio has had very strong, positive absolute returns year-to-date (YTD) and over the 1-year period. The portfolio has underperformed relative to the Russel 2000 Growth benchmark because the market has been favoring low quality companies in the small- cap space. Many of the leading small cap stocks have low sales growth, high bankruptcy risk, and low free cashflow, and do not meet Franklin’s quality criteria for investment. Additionally, the materials sector has outperformed recently, specifically metals and precious metals, which Franklin does not believe has sustainable growth potential. The portfolio’s performance was also hurt by not owning Bloom Energy, which makes fuel cells used in artificial intelligence (AI) data centers and Franklin failed to recognize the advancements in the product line; the portfolio was similarly hurt by not owning cryptocurrency and quantum computer stocks which outperformed, however these companies are highly speculative and also do not meet Franklin’s investment criteria. The portfolio has had approximately 4 periods over the last 20 years during which it lagged the benchmark, and each period was followed by the portfolio’s sustained relative outperformance, as evidenced by the 10-year, 15-year, and Since-Inception returns. Secretary/Treasurer Griggs left the meeting at 8:33 a.m. and returned at 8.37 a.m. On the page titled, Sector allocation, Mr. Cole advised that it has added to its position in Health Care, as regulatory over-hang and market cycles have depressed valuations. Franklin has been reducing its exposure to Information Technology due to concerns that AI buildouts are not productive. Mr. Cole discussed Franklin’s outlook. Franklin has positive expectations for the SCG strategy because the market had been favoring large caps for an extended period of time while small caps did not participate; now that large cap stock valuations are excessively high, small cap valuations are relatively more attractive. Additionally, revenues and earnings have begun to broaden amongst small caps across the economy, especially when associated with the AI boom. To Trustee Joseph Hudgins’ question, Mr. Cole advised he was unsure if the portfolio currently owns Rent-The-Runway, and its current valuation; he will provide that information after the meeting. The Board thanked Mr. Agnello and Mr. Cole for their presentation.

Minutes of the Police Officers’ Pension Plan Board of Trustees Regular Board Meeting June at 8 a.m. in the Sarasota City Commission Chambers2026, :1525, Page 5 of 8 9.2. Presentation and Discussion Re: JP Morgan Asset Management, Performance Review for Period March 31, 2026. Presenter(s): Katie Hammond, Vice President; Caitlin Russell, Executive Director; Zainab Oni, Vice President; JP Morgan Asset Management (Telephonic). Katie Hammond, Zainib Oni, and Caitlin Russell of JP Morgan appeared before the Board telephonically and introduced themselves and their presentation on its Strategic Property Fund (SPF), in which the Plan has been invested for more than 20 years. Ms. Oni reviewed the page of the materials titled, Unique access to premier assets with irreplaceable quality. The SPF is JP Morgan’s flagship, core real estate fund, and the portfolio’s properties have higher rent and occupancy levels than the benchmark. The strategy looks for properties in high growth areas which have low and predictable and low capital and operational expenditures. Ms. Oni reviewed the page titled, Maintained outperformance trajectory, which shows the portfolio’s performance. The portfolio outperformed relative to its benchmark for 8 consecutive quarters; all sectors contributed positively to the return in Q1 2026, and Office was the best contributing sector in Q4 2025 and Q1 2026, mostly due to leasing activity. JP Morgan anticipates the Office sector to perform the best for the strategy in 2026, however underperform in the benchmark; the strategy secured, in 2025, a 2 million square foot property that is now leased to AI, defense, and advanced manufacturing firms, and will add 50 basis points of appreciation to performance. She reviewed the Unlevered sector appreciation: 2Q24- 1Q26 chart; Ms. Oni asserted this period represents the initial stage of a recovery within the real estate market, and the page titled, What we accomplished in the last two years, highlights what the strategy achieved in this stage. She noted that the 441 basis points (bps) of outperformance was 78 bps higher than the next best performing fund in the ODCE benchmark. Within Transactions, two-thirds of the acquisitions were in high- growth sectors and the strategy’s $5.5 Billion in dispositions were approximately twice the ODCE benchmark’s disposition volume, and represent approximately 1% of the portfolio’s carry, which shows assets are valued appropriately. While the SPF is approximately 12% of the ODCE index, the SPF provided 25% of the liquidity in the entire index. Ms. Oni discussed the strategy’s outlook beginning with the page titled, 2026 business plan. The SPF anticipates outperforming the ODCE due to the strategy’s strong, embedded net operating income growth of 6% to 8% per year for the next 3 years, embedded appreciation of properties which are leased to AI and other high growth sectors and located in high growth regions, and its new investments with focus on extended sectors and the build-to-suite industrial pipeline. The strategy anticipates build-to-suite industrial properties to generate approximately 100 basis points of

Minutes of the Police Officers’ Pension Plan Board of Trustees Regular Board Meeting June at 8 a.m. in the Sarasota City Commission Chambers2026, :1525, Page 6 of 8 embedded appreciation annually for the next 3 years. On the page titled, Current allocations driving alpha, Ms. Oni asserted the SPF’s sector allocations are accretive and drive the fund’s alpha, or, return relative to the benchmark. She discussed each of the bullet points under the chart titled SPF’s allocations positioned to outperform in recovery cycle. On the page titled, Focus on outperforming extended sectors, Ms. Oni explained that the strategy has doubled its extended sector exposure, but is still underweight to the ODCE benchmark because the SPF is does not hold properties in underperforming sectors. The portfolio is prioritizing debt in the highly fragmented sectors with local “mom and pop” operators; this allows the SPF to create scale, as well as operational efficiency. The chart titled, Extended sectors continue to provide alpha (5-year return: primary extended sectors,” shows the SPF’s superior asset selection. The page titled, Asset quality drives consistent property alpha, shows the SPF’s assets are commanding higher rents, and occupancy levels than its peers, which leads to consistent asset outperformance across multiple time periods. Ms. Oni concluded her prepared remarks by discussing the page titled, Why SPF is poised to continue outperforming. To Chair Rossnagle’s and Trustee Grant Hudgins’ questions, Ms. Oni clarified that the portfolio holds office properties across the country, although especially in New York and the Silicon Valley areas, many of which are leased to AI businesses. JP Morgan leverages its information advantage by performing extensive due diligence prior to leasing to ensure public company tenants have considerable revenue streams and strong footholds in the locality in which they operate, and non-public companies are in the late stages of raising capital. Additionally, other investment teams at JP Morgan may hold equity positions in the companies it signs as tenants. Ms. Oni advised she does not have, at hand, the percentage of the Office sector of the portfolio which is leased to AI-related companies; she will provide that information to the Board after the meeting’s conclusion. Further, the 2 million square foot property secured in 2025 is fully leased to AI-related tenants, but this is a single asset in the portfolio, and the portfolio is not entirely leased to AI-firms. The portfolio is not leasing properties directly to AI data centers, but to AI-related operations which require office space. Many properties are located within mixed-use areas which support retail, commercial, and residential operations, and are attractive locations for clients from a variety of sectors. The Board thanked JP Morgan for its presentation. 10. Unfinished Business: None. 11. New Business:

Minutes of the Police Officers’ Pension Plan Board of Trustees Regular Board Meeting June at 8 a.m. in the Sarasota City Commission Chambers2026, :1525, Page 7 of 8 None. 12. Attorney Matters: Attorney Kaufman advised that he is continuing to monitor the Pangallo matter; he anticipates the formal hearing being conducted near the Board’s September 25, 2026, meeting. He will provide a complete record for the Trustees in advance of the meeting. Attorney Kaufman reminded the Board that the Trustees must complete the Florida Commission on Ethics financial disclosure Form 1 before July 1, 2026. Pension Administration will send a reminder to the Trustees with a link to the filing portal. 13. Other Matters: 13.1. Presentation and Discussion Re: Asset Allocation as of June 15, 2026. Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin reminded the Board that the Plan is scheduled to present a brief overview to the City Commission (Commission) on July 6, 2026; Chair Rossnagle advised he will present to the Commission. Secretary/Treasurer Griggs and Pension Plans Administrator Martin will be available before and during the presentation as needed. Pension Plans Administrator Martin advised that the Florida Division of Retirement (DOR), Office of Municipal Police Officers’ and Firefighters’ Retirement Trust Funds, is still reviewing the Plan’s 2025 report, although she does not anticipate any additional questions. The DOR’s approval of the annual report triggers the issuance of the Plan’s share of State insurance premium funds to the Plan. Attorney Kaufman added that the State typically issues insurance premium payments to local pension plans in August of each year, and he does not have concerns regarding the acceptance status at this time. 14. Adjourn: Chair Rossnagle adjourned the meeting at 9:04 a.m.

Minutes of the Police Officers’ Pension Plan Board of Trustees Regular Board Meeting June at 8 a.m. in the Sarasota City Commission Chambers2026, :1525, Page 8 of 8 ________________________________ Chair Tyler Rossnagle ___________________________________ Secretary/Treasurer Shayla Griggs

Agenda textPolice Officers' Pension Plan Board of Trustees Regular Meeting

Police Officers' Pension Plan Board of Trustees Regular Meeting

POLICE OFFICERS' PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING

07:30 a.m. June 25, 2026

MEETING NOTICE AND FINAL PUBLISHED AGENDA

Click to View the Meeting Notice and Final Published Agenda.

1.

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

2.

PLEDGE OF ALLEGIANCE: Presenter(s): Secretary/Treasurer Griggs

3.

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

"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 Police Officers' Pension Plan Board of Trustees Regular Meeting of May 21, 2026. Presenter(s): Chair Baty.

Click to View Backup Materials.

7.

NOMINATION OF BOARD OFFICERS:

7.1.

Appointment Re: Selection of Chair. Presenter(s): Secretary Griggs.

7.2.

Appointment Re: Selection of Vice Chair. Presenter(s): Secretary Griggs.

7.3.

Appointment Re: Selection of Secretary/Treasurer. Presenter(s): Secretary Griggs.

8.

RETIREMENT REQUEST(S):

8.1.

Approval Re: The Normal Retirement Request of Patrick Robinson. Presenter: Debra Martin, Pension Plans Administrator.

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9.

INVESTMENT PERFORMANCE REVIEW:

9.1.

Presentation and Discussion Re: Franklin Templeton, Performance Report for Period Ending May 31, 2026. Presenter(s): David Cole, Senior Portfolio Manager; Michael Agnello, Client Relations Manager - Business Development; Franklin Templeton.

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8.2.

Meeting record textPolice Officers' Pension Plan Board of Trustees Regular Meeting — Closed Captions

Showing the first 24,000 of 38,128 characters. The full document is at the source.

you could me. A little bit of this year with so Eastern time this. To People called and talked to 45 to second >> You know how long >> and it's and it's >> Welcome to open boys. Audio services. Please enter your conference room number followed by the pound or hash fine. Conference room number excepted. If you are the organizer press to start he other please enter your pick a load off. ? ? ? >> For menu is available. Command press star one. There is one other color on the call. >> And vaccine from like that, grant can hear me just checking my. >> I mean, it put you back and there are a couple other people calling in. You might be able let just let me start 6 a. >> think you thank you. And so. >> well, I I experience as a kid. I school year. That I even think it was >> Late the day. >> A minute to spare sent >> Call the service of the police officers, pension board trustees, regular meeting of 6/25/2026 0, 8, 15 hours first on the agenda would be jewel of allegiance. >> What they do to and states of America. stands one nation for all. Next would be that you pleasure civility. We may disagree, but we will be respectful to one another. We will direct all comments to the issues. We will not engage personal attacks. Next on the agenda will be rolled called ever. >> Chair Beatty president that Vice chair us president secretary Treasurer, Great Trustee, Hudgens Gertie Hudgens. >> Trustee, Grant Hudgens. >> That's where public see, we have none. Next will be the approval of the minutes for the regular meeting of the May 21st 2026, have a motion for approval. I make a motion to approve units. We have a motion. I'll second motion a second. Chair Beatty. Yes, vice smegal. Yes. Secretary Treasurer Griggs. Yes, I'm sorry. Haha trustee, Jodi Hagins. >> Yes, just a grant Hudgens. >> Next on the nomination board officers. Before we get started, I'd like to make a comment on I've been on the board now to be 30 years. Okay. >> And I've chairman. least 4 times. Another always had. Jo Dee will probably relate this to. I've always felt chairman should active elected member. More. So if we can do it. they are elected by the body. And we are appointed. All the rest of us are point. So that's in this Tyler is chairperson he's now over 2 years. And I've always felt that it takes at least 2 years for a new trustee to understand. And kind of relate to the direction of the board and the personalities of the board because we all we do have a so that's why would nation Nicole, the chairperson nominated. >> The group, I would a voice from above. >> So far as I'm we have motion as the chair of the police, pension board. I believe we have a consensus to have a consensus, Jodi Grant Grant. >> Yeah, yeah. >> So we have a consensus. I think we can move forward in the regulation. So you're not touching. >> But they >> And next would be a nomination of Vice chair. >> All right. We have a selection of vice chair for the police officers, Pension Board. Anybody have any nominations. >> will nominate I'm a majority. >> Your but I cannot I could. I think that I can not accept it. I just. Half of the meeting that would be. Doing arc and doing Honestly, I just hope like this >> understand I would nominate. >> I would this if Tyler, he in Any guidance or recommendations or anything in. But Lilly known me for advice. >> So with that, I just I've made the nomination Mister. They need to be the vice chair and we have a second initiatives. I'd second. Okay. And then we have a crisis is too make that determination. >> All right. We thank you, sir. >> And nominated for secretary And it can only be one >> so I will nominate show you and I'll second that. >> All right. and nomination to have Shayla Grigsby. The said that a treasure. You have a consensus on that. >> have spent yet. Thank you all. want. >> Yeah. The way welcome come to an end. I know Thank I appreciate them. >> All right. We'll move on to the next agenda item or to be a return, request. No request of Patrick Brabant. A Patrick Robinson. >> I'm Patrick Robinson is retiring at the age of 40 years and 4 months after 25 and a half years of service as of May, the 7th 2026 and he has requested the 50% to join a new tent pension option. And the motion to approve a second. Chair. Ross Nagle. Yes, vice chair Beatty. Yes. Secretary Treasurer, Greg. Yes, trustee, Jodi Hudgens. >> Trustee, Grant >> motion. Motion are. And the motion passed will move on to investment performance for Presentation discussion by Franklin Templeton. Do we have David Cole? Frank? Mike Boone thank you, can you just to introduce yourself for the record? course, 20. Good morning. Thank you for having us. And today, my name is Mike. You I am client relations manager at Franklin Templeton Beason R C, Petersburg office. And I'm here today with call. He's the senior client portfolio manager. >> He's also facing our St. Petersburg, Florida office. You actually giving you the update today on your Franklin. U.S. small cap growth strategy that we manage for the city of Sarasota police officers, pension plan. Before turn it over to him. I just want to thank you on behalf of Franklin Templeton. I notice that we've been doing with or how things are having the privilege of working with this board for 20 years. And so you do really, really appreciate that. So at this time, I'll turn it over to my colleague due to cold and he can provide you an update on your portfolio. >> Thank you, David Cole Cpm with Franklin Equity based out of St. Petersburg, Florida. covering the Franklin Mint Small-cap growth strategy. So first of all, I would Mike's comments. Thank you for your continued trust. It's something that we take very seriously and we're honored to be. Part of this group and helping. So I'll cover 3 different sections today and investment strategy update and review first. We'll just recover the overall team and the strategy overview. We've had a couple changes within the investment management group. Also with the portfolio management team. And then just briefly review the strategy. Second, we'll talk about performance and current positioning of the portfolio and of the strategy. And lastly, give a little bit of our outlook going forward. So starting with the team in strategy, overview all start with the investment group. We have had some changes, formerly we were called this an investment group, Franklin Equity Group. We are now Franklin Equity as of January 2025. Most of that was an internal Franklin Templeton Change. It was the coming together internally of 3 teams at Franklin Templeton, Franklin Equity Group based out of California Mutual series based out of New Jersey and Brandywine equity based out of Philadelphia. The highlights really for the sport to understand is that we have a new leadership team. So our is now Christian Korea. He came over from the Franklin Mutual series based in New Jersey. He was a former there. We have larger scale. We are now as a investment 180 billion dollars in assets under management which gives us a lot more scale in the marketplace. And then most importantly, I would say for this individual strategy that you work with is you have increased resources for the team to work from. So now we have 100 plus investment professionals. In our group. And really 35 sector based analysts that this small cap growth strategy can pull from. So that team has grown given increased resources. So that's a positive there. Moving on to the small cap growth team had a couple changes. So Mike McCarthy was the longtime portfolio manager. He retired at the end of last year. Brad Terrace is now a portfolio manager. He's been a portfolio manager on the strategy for a long period of time. He's retiring at the end of September. So gets about 3 months left on the strategy. The current PM's after September will continue to be JJ Schwarz. He's been on the portfolio for a while. Now. And then we'll be adding JP Scan Daily Dose. This can be found on Page 6 of your packets JP Scan is PM on our small Mid Cap strategy and will be added to our small cap growth. So well, Ed, some continuity there. Really brings together some expertise in many different names that are in the small-cap growth strategy and also. Worked with this team for a number of years. But now the unnamed PM. And so a couple months ago, then you also have who is a consumer analyst and supports the team. Not a portfolio manager and Ryan who is on the private investment side who also supports the team, but not the portfolio manager and they bring valuable insight to the team. The strategy can be found on Page 7 of the pack. It. review just the philosophy and the strategy. I think it's very important with those changes at the investment group level. And at the portfolio management level, nothing has changed with the overall philosophy war strategy of the portfolio. I will continue to manage it the way that we have for many decades now, the philosophy is that we still believe strong risk-adjusted returns can be achieved from finding small cap companies with sustainable growth. A reasonable valuations. That's what drives us every day. And our approach to this is three-pronged. So we're looking for growth in these companies, quality and valuation. Us. >> Sustainable earnings and free cash flow growth. Well, targeting current and emerging leaders of the market quality is one of our most important screens. And really we're looking for high quality companies, meaning strong and improving competitive positioning in the marketplace. Talented and experienced management teams, of course, healthy financials as well or very important in the company. So we own in this portfolio, the last one in 3rd problem of our approaches valuation. looking for companies, of course, are underappreciated in the marketplace and therefore, in our opinion, undervalued. So that's our three-pronged approach. Nothing has changed Reiterate that point. Moving on to performance and current positioning, you'll find this on Page 13 of your packets. So if you focus on the bar charts at the top of Page 13. You'll see that the year to date numbers. So Ytd and the one year numbers the year to date the strategy is up 10.7, 3%. That is through the end of May. So may 31st. And over the past one year, the strategy has returned. 29.1 3%. So extremely strong. Absolute returns in the strategy. You will notice, however, that we have underperformed our benchmark over both of those periods. And there are a number of reasons for that, which I can go over here briefly. So the first reason for that and the biggest overarching reason for the underperformance first, the benchmark is that over the past year and year to date, it's really been a low quality market, meaning that a lot of the lower quality companies in the marketplace and in small cap Growth Index have outperformed. What we've seen was this aspect was really evidence we looked at some factors that were driving the market last year and year to date and some of the biggest factors are company qualities that have been driving the market for factors like low sales growth. Hi bankruptcy risk. And lo free cash flow. We just talked about our quality screening. We're looking for high quality companies. None of these. Things meet our quality metrics so we don't own them. We don't feel that you want to own them over the long term and can be typical of the marketplace. Win. There are certain. Aspects. For these companies to Raleigh and do pretty well in the short period. But typically they'll last for a long period of time. So that was the second point on maybe a bit of the underperformance. There was also a big move in the materials sector of the benchmark, which we're structurally underweight, a lot of metals and mining stocks are in the materials sector. If you recall gold prices move significantly higher last year, which moved the metals and mining stocks up. We do not feel that these are a long-term sustainable, great business models. And so we do not invest heavily in in the portfolio. So that added to a little bit of underperformance. We also didn't own Bloom Energy. This was one that we did some research on and we decided not to invest. And regrettably it was something that we quite frankly just didn't see the advances in the product line that they had made. They have become a artificial intelligence winners in create fuel cells sit next to buildings and thought to be a big winner in I infrastructure build out as there will be a lot of need for those a type of fuel cells to said. That's next to data centers. And we miss that. And that is up significantly in the benchmark because underperformance. And lastly, many crypto in quantum computing stocks performed well as well. Once again, those are speculative to us. Very volatile and not great businesses in our opinion. So we're not going on them heavily in the portfolio. I will say this. This type of underperformance first, the benchmark has happened about 4 times in the past 20 years. And each of those times the portfolio over the subsequent couple of years has outperform significantly. >> Going forward, obviously, we can't predict the future, but we're sticking to our process of investing in high quality, sustainable growth companies with good management at a good price. And we feel that that will work over the market cycle and that could be evidence. If you look at the 10, 15 year and since inception numbers on the bar chart at the top of Page 13 where we've outperformed the index over each of those long-term periods. Next will move to positioning. If you turn the page Page 14, you'll see some of our current positioning. So our areas are healthcare industrials, information, technology. Those are 3 largest sectors that we own in the portfolio. So quick comment on health care. We've actually increased the sector currently that is a good example of us being a little bit more contrary and in our growth rates. And looking for companies that are undervalued. There's some cyclical pressure there. Some regulatory overhang, which is caused valuations to look very attractive for us and continue to see some high quality companies there. So we've increased our exposure in that space tech. We've actually reduced are overweight here, as you've probably seen over the past year year and a half, some software companies have come under pressure due to a I build outs. And so we've actually been reducing that exposure to reduce the risks there. And then materials. We talked about a little bit were underweight and materials due to the exposure to metals and mining that we just don't feel those are good, sustainable long-term businesses and they can be highly volatile. Concludes that review on performance and we'll move to outlook very briefly. So I think why we're very positive on the strategy going forward and small-cap gross in general growth companies in general. Is that the markets really been heavily driven by large caps over the past number of years. All of these large caps have grown to mega caps and they've continued to rum. And so the valuations on a lot of those large mega caps have really grown to be outsized and smaller caps have not participated as much in that performance. That means the valuations and small cap growth companies look pretty attractive at this point. Also, you don't valuations alone. Don't create great investments. So we need to see the growth in earnings. The growth in revenues. And we're starting to see that problem throughout the economy. And moving into the small There's a lot of positives happening in the economy with the city. I build out and a lot of revenue growth for especially a lot of the smaller cap companies that are coming through. If you can invest in high quality management teams through that, they can help reduce costs, create efficiencies. Well, they're increasing revenues. You can start to get that earnings growth you get their earnings growth, you get stock price appreciation. So those are the companies were investing in and we'll continue to do that with our growth quality evaluation framework. We feel that we're positioned pretty well going forward. Concludes my update of the board has any questions. I'd be happy to take them out. anyone have any questions? >> Question play. Check out of the They >> Several years ago, I recall we had in the 4, O, you know, p o by the name of rent the runway. And there were some drama surrounding I was just curious bill in the portfolio, is maybe what the valuation is a game back. Its initial die. >> Rent the runway was the name of the company. I am not sure if that's still in the portfolio, but I can double check that for you and get you that information. >> I have. if you could, maybe if you could check on that and get that would be great. Absolutely. Will pass it on to Denver. >> questions. Thank you. Thank you. All right. Now we're going. I will move on to the next presentation and discussion JP Morgan Asset Katie, are you on the line? >> I'm like, Yes. Can you hear me Thank you. >> You go ahead state your name for the record. >> Absolutely many Katie. Him in the Morgan Asset Management. Really appreciate the opportunity to be with you all today I worked there's leave the well of the number the State of Florida for the last 4 and I'm here with my colleagues and our built in America not ony people and brought who walk through perform your to property fined about that with for some form of do want to thank you for the long ending is not been all that investors in 2000 and I are more than 20 years. The greatly appreciate the long-term partnership. And when with you last year, we really talked about kind of the infections point that was taking place in the corner real estate market. And please report that will continue here on the positive that really both real estate generally from core perspective, but also the property fund in particular has relative, a performance that we've able to generate or are you going to things over to you today? Not just to confirm their for about 15, 20 minutes about the weather for all of you. A great woman turn things over to my colleague Dana. >> Megan, thank you for having Katie 19 might even say need. I'm investment specialist on the real estate. America's in covering the out the N. I want to cook a stop sign. You know, you kind of step with us for a long time with the fun and the fun of on all cylinders during recovery. So we're excited today to cover. will be up a fight. The performing the Gulfport Outlook and our position. I'm going to start the publication on Page 13 of the estate. And that they are going want to provide a refresher on what is sure to get property fund or ETF of you. Call it. I have to Morgan Black should open coral a fun. It is one of the largest and longest tenured audit people and wearing a top manager, the United States on the left side of 13 is what P s is known for, which is having act that the government, the patient and the best market. The fund is the gold standard of quality. And what that means is that are at heart believe in command, the highest rent. But just an example of what that means that for our dominant day, our office have 40% higher rent and 10% higher occupancy rate, the Office's audit. carbon On the right side of the page and what we are growing, which it should Part of the portfolio is a high-growth, extended sectors. We like that are why and democratic in sectors with low cap fact and wow, a pack. But for example, work for extra outdoor storage is factor with strong Demand dynamics. We're all first in built for single family with added supply with the high country sector. We don't kill in the sectors to it to the partnership with our partner and what we have, the combination of having the best acts as a conditional sectors on the left side of the page and though that that the sector allocation properly on the right side of the cage have been incredibly beneficial for has a look. They recovered from right, the period. On the next page. Page 14. I'm going to talk about tournament. We are laser focused performance and we're coming up. Another quarter of department on the left side of the page in the 1st quarter of 2026. At over perform an audit be by 11 basis points. That makes it 8 consecutive quarters where we top of index. It will be on the bottom. The people in the bottom left part of the pace that all sectors or contribute positively people What's interesting is that office had on sectors of the fun. The last report that strong in office that the jury by late next But in 2025, we've 0.2 million square feet, obviously to 10 in other in the eye has been factory. So in town center, which is in on valley with I 100%. We see and what we saw in that is that, you know, the leases be fine. 6 months ago, the rain grew like for or the 8%. And see if you concessions as well with office leasing we backed off of on the back to 23. It will not be truck ran out of the but the particular to at T S because of office at that that we don't back to Lee worked off the week and I talked about that. Is That has about 58 points with better appreciation that we're going to get on fun that year. As he been a top court during the recovery on the right side of the We point out of the bye or 2.1 basis point that a lot we're. Retail. I think the on the bottom on the bottom right of the page and reason that point that that is true for all on the but are different that, that are the largest contributor to apartment, our but the clock delivered 210 basis points of annual for the last 5 years. And you see on the bottom right of the page where we have to get total 2.2%. Well, you 1020 to 25% at the bottom. We are all that I only just recovered. 2.2% of that But we are at the very early recovery. On Page When I started, I kind of talked yes a also there and the pay is the example. Fire that show you what we've accomplished in the last 2 years. recovery at the end of leader appointment transactions with and fundraising when it comes to the last page about the only 2.1 basis point of in the last 2 years. I was 78 point higher than it not be. We executed markedly in transactions across our position and the position the issued last year. the past we've invested over 1 billion dollars. There is a that would be high growth extended sector. 5.5 billion last I was more than doubled the average e no other point completely closed our transaction activity and 5.5 billion on one percent of Kerry, which showed you that our transaction show that are at rally appropriately. And these transactions that a lot of the river over 5 billion in for our client the last year. But that is a contact at PS is about 12% of I B but provided 25% of the look. We up the entire that. Are investors are confident knot because of our track record and we want raise the most of any are one of the last 3 years. We rate 2.4 billion in capital over the last 2 years. And that has put enviable position of having dry powder. opportunity at that. I did talk to entry point. I'm in the outlook. I hate to see. Foreman says that are and we are well positioned rear by the end of the year. We live with all the people the rest of the year instead appointing like we have been doing a lot are would still be on what will performance by the end of the year at the couple of public order. But we back that people can performing for 3 key reasons. The first is we have strong and vetted and a wide group, but annually for the next 3 years. And when I talk about that in a white grow, over 90% of contract to a year one and 84% contractual in year 2, 3, The second reason to be in She ation from that. The only of a particularly thing that we find last year we have done a tremendous amount of we've been. Are the polio. A lot of people at the what is the impact of AI expected to be but it's actually quite positive fraud. I have been driving demand for office in our at Bay Area Silicon Valley, but at count them on talk a

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