Code Compliance Hearings

the conference number. Please enter your access To complicate you. Interviewed them about these ran to your access code. For the first party to join the call. want change special. This is to be have that. of We'll see if it turns into something. >> It's going to sell. lot of sense. ? ? >> Thank you for calling me the conference number. Please enter your access You're the first party to join the call. >> he said just Do you got the beach this morning? >> I'm sure I drove this the way for 15. Just pulled in I'm like. James The calling the Grant is on its way okay. Okay. >> have a couple minute delay because our 3rd members on the way and now I think you work last night. So Will team? With this Sorry the has and you work less than I this little and so. You know where your ways. >> So much this going. >> started Call to order the Sarasota police officers who mention board trustees 9/24/2026 first on the agenda will be the Pledge of Allegiance. Air. >> Republic for which stands nation under God, indivisible, with liberty and justice for all. >> Next would be the code conduct. We may disagree but we will be to one another. We will direct all our comments to issues. We will not engage in >> next, the roll call >> Chair or a snake Vice Chair Beatty president Secretary Greg President trust Gertie Hagins. >> Credit mark telephone. >> Trustee, Grant Hudgens president. Next on the agenda with the public and put his or any public We do okay. Would you come down? can come together like? You should get 3 minutes. Whoever was the first introduce yourself for the record. >> My name is Eric are the president of the Union that represents the. and sergeants of this Sarasota Police Department. Just have a couple basically appealing pension figures that were brought to our attention with recent developments. How does the process of appealing a pension figure work if some were to basically go? >> You know, questions public comment know. >> It's just when you try to calm religious It. If someone could address how that process would as I look through. The summary plan description and the pension fund that's not clearly laid out and members of trying to find that. And we're looking for direction and asked me to come and get guidance on that. So if that is in writing somewhere or there is guidance on that, they would like that or information on where to find that. And then the other questions will be where they would find the description of how that process works. And then what that appeal to the pension board would look like. And that's basically all we have. You're looking for some collaboration or discussion on that. But office not any back and forth. And that's all the questions or comments that we have. And just so I can dress I want to make sure all know during public comment, don't go back and forth that we can address. It will adjust as a board later. >> Just just so, you know, I just want to see you think that we will talk about it at all. We just don't do that during the public comment process. This is your time to speak. We'll let you speak and we don't interrupt. So that's don't you think that we're going to ignore no presentations Yeah. You have. >> Did you have your own separate the vice president for the same >> We represent the officers, the sergeants and crime scene. We have been in communication with all the tenants as well. So Lieutenant Jeff Steiner, who represents all the lieutenant of the police department, it was brought to our attention that. Somebody that is looking to go into the drop in January, had his numbers were off, according to his calculations. So I started digging into why the numbers were different from what he thought it was going to be. Turns out he did different. Then the way I guess pensions normally does calculations. There's conversation from my understanding that ended up resulting in him consulting with the attorney. Of the pension board and possibly had a different recommendation. And then there was no change in how the city court city code. interpret it. So we're just trying to get clarification if there was a recommendation, why are we so going forward the same way? you know, nothing else. know, I can think that. Thank you. Thank you. All >> Next on the agenda will be the approval of the minute. The regular meeting of June 20 failed 2020 >> I still live approval of the I'll second. Goal. >> Vice chair baby. Yes, secretary Treasurer, Greg's yes, trustee, Jodi Hagins. Trustee, Grant Hutchins. Yes. of us. >> Next on the agenda will be born election Police officers, pension board trustees PP 5 for a term of February. First 2027 to January 31st. 2031. >> So that this this is your seats that this is up nominations and will open up the floor of the nomination. >> I'd like to run dating. I was like to concur with that as If you have, if you want to all except. >> Okay. So on that note, we have the nomination. I'm on the floor for to reappoint Mister renovated to the police officers pension board. Can we get a roll call vote. Vice chair of a committee vote. know, okay. Haha. >> Secretary Treasurer Greg as trustee, Jodi Hudgens. Trustee, Grant coaches. Yes. >> Motion 30 so far So and I've been through, I don't know how many board members. So I always said I would stay as long as they wanted me to where I was capable of doing the job. >> appreciate you. the had a birthday another year down. Thank Thank Next would be retiring request. The investment deferred Time request of Brian. >> Ryan, separated from the city 1/3/2015, he left his funds and the plan hasn't. And now he is requesting a dip for benefit. He had 12.6, 5 years of service and he has selected the 100% to join a new election. You have a motion make a motion to approve. have a motion and a second. Vice chair of 80. Yes, secretary Treasurer, trustee, Jodi Hagins. >> Trustee Grant Jones. Yes. >> Good next will be approval of the drop request. By Michael. I think it's short sermon okay. Denver. >> It's officer Schwieterman on at the age of 52 has requested to enter into the drop after 26 point 5 years of service. He did. He was not interested any of the joint annuitant options. So he is just requesting the the lifetime only benefit. >> I'd like to make a motion to approve. I'll second we have a motion a second roll call. >> Vice Chair Beatty. Yes, secretary Treasurer Greg trustee, Jodi Hagins. Trustee, Grant Hudgens. Yes. Motion carries unanimously. >> Next on agenda with the investment performance review presentation and discussion Allspring global. Good morning. You have 15 when identify yourself for the record, please. Yes, sir. And more. >> Dan Smith, senior director of the Institutional Client Group at Allspring Global Investments. I actually did ask my zooming live edge. use of joining us toll on plate. as that, you can just quickly confirm you can hear us so we can hear you. you are >> Good morning to the board is to I can hear you. >> As we get it wonderfully. We greatly appreciate the opportunity to come and visit with you today. >> I'm just real quickly. at 30,000 What's happening with all spring? We are coming up on our 5th anniversary of our our separation from Wells Fargo and launching as an independent company on Page 2, the presentation material that we provided to you things are going very, very well for 642 billion dollars total assets under management as a high watermark for us as an organization, no example of The success we've had a as an independent company is that continue to grow and continue to do well on that front. No, no to the to the firm firm. Up from a personal perspective, we're still 1250 investment professional strong. We did announced earlier this year the acquisition of a fixed income company in New York called G I a adding to our capabilities. They are emerging markets. Debt managers, not right. Not germane to what we do for you, but just kind of an example of how we're continuing to grow both organically and work and in organically and we'll continue to look for the right opportunities on that front. So really, no other no other changes to speak of. from perspective. We're just checking a lot. We're going to be celebrating a all spring day here in November, which is our annual Independence Day. So it I joined as always the Pelley of the asset Management business because I can't say his last name very well. I struggle with it for some asked him to join real quickly. Just to give 1000, a quick update of what's going on with the itself and not kind of what we're doing for Please ask questions as you go along as you see fit. >> Thank you, Dan. What again? Good morning to the It's a pleasure to have a chance to provide an update. The city of Sarasota police. My name so you have leave up to you. So cheap or and for the girl. Back with team. We manage what's called a firm near Growth equity strategy. More from near Grove portfolio on your behalf that portfolio in totality. And I'm not 1.6 billion in total across all of our clients. And then my team, my co-workers, other portfolio manager, we manage just over 13 billion with and all sort about how sort of investment within the and there have been no changes to the person. Now. Managing your portfolio or the investment. A lot of people in the process. Everything been steady from execution standpoint. There I'm going jump around to a couple of slides to cover the topic this morning and are there are few slides. Help provide some context to the performance. So the board to first look at flight number 14, the title at the top said balance across market cap. reason I wanted to highlight this it for that it's many of you may know U.S. large cap growth in the last couple years. I've become very concentrated. In a small number of stock, often referred to it. The magnificent 7 or sometimes the mag 8 and those stocks have become very enormous parts of the benchmark part of our universe. The premier a little bit you manage for you does have exposure for some of those megacap stocks among big stocks like Microsoft, Google and others. But we are meaningfully underweight. You can see on the left of the slide. We have 33% of your portfolio in those big void, if you will. And that significantly lower than the benchmark at 55%. We are taking a dedicated and intentional that. On mid cap stocks. If you move to the right of the slide, you will see that we have 20% of your portfolio allocated to stocks between 50 100 Billion. We call those mid to large cap stock. And then we have 19% of your portfolio allocated 2 stocks between 10 50 billion market cap. But that is the unintentional sort of structure of the bond of the portfolio. We believe mid cap stocks. Very attractive growth. And they're not as crowded. They don't have quite as high valuations as a group. Some of the cap stock. We are manager. We have killed. Or does cap in fact, on slide 12 of the materials. You can see that we've actually been reducing in recent years, the way in the portfolio to those magnificent 7 stocks. It's been coming down. It's currently around. 25% your portfolio. We have, you know, wins or the portfolio. But market brought out. From just a narrow group of stocks that are driving the One last thing about the you may be aware of already. I want to point out. The benchmark, the Russell 1000 growth index. Now has around 55% of the portfolio of the in evening intend stocks. The index itself has become non diversified. We are choosing to remain diversified in your portfolio. We between and 70 stocks in the portfolio. And we're not allowing, you know, the name the top names of the portfolio to become 10, 12, 15% of your portfolio like they are in the index. The index actually fail the roles for diversification. You have to keep that in mind when looking at performance, we're now in an environment where the Russell 1000 growth is largely driven or dictated. I very small number of stocks. Again, about stocks kind of run the show. just jump on track to explain performance, which is on slide 7. The materials. Out make couple comments. The highlight what's been going on with performance. And that will cause to keep the board of the new questions. This is snapshot of the performance for June of this year. Through You're today more fun with pop around 7.4%. And the benchmark was up 5.3%. So we were about 2% ahead of the index. The middle of this year. So far this year. What's been driving the portfolio? We have a slide show that the next slide slide. 8. This slide is highlighting what role? What health the fun in the 2nd quarter. We had a very good 2nd quarter. The of over 18%. And if you look at the stocks that drove to the returns in the portfolio. Really? It's almost all connected to eye. The market environment in so far this year 2026, it's basically been a icebox. And everything else. Every to rallied a bit because of the war in Iran. But outside of that. What's been really driving the market? And stocks connected to the build out. They are and the infrastructure. What's very interesting to look at the list of stocks on flight a Micron and the scale I e gate. These are semiconductor companies. What's happening in the stock market is. It's broadening trained. The big hyperscale are like Amazon, Google. Microsoft are spending a huge amount of capital the build out a I and for a number of years, their stock price to me there. Stock prices rising. They were investing more. That trend changed this year. year. It's the picks and shovels. It's the company that are benefiting from all of that spending started to leave the market. And that's what's really been the key driver performance in the 1st half of the year. There are parts of the stock market generally have lagged for the most part. Now of course, there are some locations month to month. But the main theme of this year has been a I. And everything Well, that's what helped the bond. We have been positioned or the winner of that spending. We are bullish on the build out of AI. We believe it's going to be a long-term growth trend. Now, the one year performance flipping back to slide 7. a high UV index. Your about 12.6% for the trailing 12 Month. The index to about 17.7%. When you unpack the underperformance over past year, it really boils down to our conditioning around those megacap stocks. You can see that on slide 9. The fact that we were underweight or did not own Apple. And out of that, which is Google. Almost explain the entire amount of underperformance and the trailing 12 months. And I put on a year so make it count. Stocks, huge impact on the index. And for to make some good decisions to not own all of them. And create tracking there. Or variability performance. First of the index because Apple and Alphabet had a good year and we were on the way those 2 stocks. It was a drag on performance. There's a couple of other laggards over the past year. But in the interest of time. What would want really go through those too much? Finally, my last comment on the 3 year performance, the 3 year performance is quite strong for the through June. The bond was up. 23% compounded returns. But the index, which will that 22.5, 8% that 3 year performance of your pond ranked in the top 3rd of all large cap growth managers in the investment alliance, state of things. The last 3 years we've outperformed roughly 70%. Our peers managed portfolios similar to ours. We've got quite well. We're we're on. We're on a pretty good run of performance. One of the slides in the DEC flight 15 break out the performance of the strategy. Year-by-year each calendar year. You can go back and see how we did that person is the benchmark going back over 20 plus years? We are. our 3rd year in a row of performing in the top half versus our peer group. 2020 for 2025 and so far in 2026. The fog. is reporting in a very competitive position. We're competing against an index that's very top heavy and not diversified. And we're making very intentional that. Particularly I and a few other teams that we have expressed the portfolio and to the board. I'd like to their out there. If there are any questions. >> Good morning us. My name is Grant Hudgens. I just had a to go back to slide. 7 as it relates to your 5. Would you attribute missing the benchmark on your 5? Also to the under way on megacap stocks. >> Yes, thank you for the question. I did not address a lot of 5 year performance. There's there's 2 factors that had that impacted the difficult 5. Your number. Yes, the first is your observation. The fact that we were underweight megacap stocks that frankly have been dominating up until recently in the last 5 years has been a drag owning anything else in small cap for cap stocks generally been a source of the traction across the industry across the stock market. If you have really does walk and mega cap stocks and on to play golf, you probably would have done better. But then there's another factor. We had a difficult period in 2022. 2021. 2022 reported difficult years. The 2022 in particular with challenging because that was a very rapid rise in interest rates in 2022, that's when you play. inflation shocks started. And one of the reasons I mention that is that rising interest rates and rising inflation remain a challenge today. We are not down. Investors need stay fully invested in growth. Stocks. But if interest rates continue to shoot out for ticket will get that go up quickly that no. Greater challenge from portfolio. Growth stocks are often considered long duration in the sense that their their earnings growth for profits often out years into the future. Growth stocks are some time sensitive. changes in interest rates. That's what hurt the fund in 2022. And then we had the last couple of months, a little bit of both repeat of some of that condition. And we're hopeful that, you know, it will improve inflation should come down and hopefully come down. But I appreciate your question because it does slide or risk the market environment we're in right now. But those are the 2 main reasons answer question of why the 5, your numbers behind benchmark. And for the question. >> Just to add a little bit color to that quickly, if I risk management is a big part success right? And and I I don't want to give the idea of mansion Apple and Google. We own those in the morning 6% position on Apple. I think it's like 4, 5%, on roll only earning less than and X-rays. That is a decision that you can make is a risk management decision that the team is made as far as just having first bite. This is a sure. So we've you know what we might have gained in the short term for some stability that that would be Yes, absolutely. The is perhaps the stocks are going to the moon forever when they come back down. What makes sense for sure. >> Joe, do you have any questions? >> I do not want thank you. All right. >> Thank you for presentation. Absolutely. Thank you very much. But I think that the board, thank you very much for your Thank you, gentlemen. >> Next on the agenda will be presentation and discussion. A national investment services. Please introduce yourself for the record. Please. Good morning. my real from a national investment based in Chicago. On the sales and marketing client service team alongside me is a new addition are from Frank De Falco. Who are recently retired Miramar police officer, former a trustee and chairman of the punishment for many, many years as significant, a 10 year law enforcement will be handling a marketing and client service process. Well, in the southeast area alongside me. Joining us today is Mark Anderson on the on the phone market is our chief strategy officer on Milwaukee. Just confirmed. Can you hear us? >> Good morning. Yes, Mark Anderson, thank you. weekend here. OK, thank you. >> Appreciate the the annual update. Once again, we've just reached 10 year anniversary. Managing a core fixed income portfolio for the Sarasota Police Pension Fund. So thank you for the opportunity to serve serve the members. I'm just really quick and the material on Page 4, I'll go through kind of who we are. As a reminder what we do we've been doing for the pension fund and then I'm Mark Anderson is going to go through the performance of the portfolio. Our position in the characteristics and fixed income. It's been a very exciting. You're in fixed income and how what we're seeing moving forward. So very briefly out again, we've been in business for over 30 years as a fixed income manager, mostly high grade portfolios in court and intermediate. So we've been doing that for many, many We don't have any other crimes have been fixed. Income fixed income only for entire a 10 years as a van. And you're in the market. From a 10,000 foot view, a new milestones of the company reached 19.4 billion in assets as of 6.30. 26. So we had a nice steady growth and our client base We've done a lot of reinvesting in the company over those years with technology, compliance, staffing. We've added for investment professional star team in Milwaukee over the last 5 years. So it really trying to keep our consistent philosophy, the stability. We know our role in your portfolios to mainly maintain liquidity, stability and be the anchor your pension fund allocation. And try to build an incremental yield as well along the way. And what has been up until recently, a very low and low yield environment. So now we're seeing higher yields in the portfolio. How higher yields in the marketplace and so forth. Pretty pretty confident. Moving and what we're doing. I'm really quick on Page 5 is just a snapshot of represent clients. We have 20 Florida institutional clients now for a little over 300 million dollars. And within the public fund sector in general, we have 32 total public funds across the country for 1.2 billion dollars. The strategy that we've been managing for the fund for the last 10 flagship product core fixed income. We have a little over 8 billion dollars in that product. I'll have more start to discuss the performance on Page 7 in the results that we've been able to achieve. This is through August 31st of 2026. both gross and net of fees. And so, Mark, I'll let you take it over from here. >> Thank you, Ray. Thank the Mark Anderson chief strategy officer at and I For the record my presentation starts on Page 7. That's great. Indicated. Yeah. year to it's been a little challenging in the bond the bond market, it's really up for a long letter for what is going on in Washington, is far the interest rate policy. The end it's reflective in foreign policy as well as what's going on in the Middle East. That and with tariffs have certainly pressure the inflation market and the bond market that just that with higher interest rates, which is not a bad thing moving forward, but going through the higher rate environment means need return or bond. Investors like UPS. What we so you can see the year to date. Number 3, August is roughly flat. And at the same time we're flat with the index. We have been taking. A relative approach to bond the board gave us a little more latitude in our ability to Triple B security with our overall credit rating. We have not taken advantage of that because we haven't found that to be the sweet spot in the Quite the contrary, we've been trying to up our look we put it to be an overall rating in the portfolio over the better part of 8 to 12 months because of all all of the underlying uncertainties. Now, what's not depicted on Page 7, but what is, you know, inherent in the returns tree and that we're generating for the plan is likely lower volatility and the index. Our goal at an eye out. It's really too, you know, outperform the index with lower volatility. Year to date. You. it. She being in line numbers would be ended, but the lower volatility. So that's something that, you know, we're trying to put the yield in the portfolio every day. But cognizant of the uncertainty in the marketplace right now. And that's been evident in the new Fed chair and how the communication has been with Wall Street up and sell very It's been a little choppy. So the as reflected all that, but I'm going to real. But if you want on the board has question on performance before I move forward. I would >> No, sir. Thank you. >> Thank you. Okay. age 8? >> And this our sector breakdown or to the You know, our our partners at all during they were talking about how proud to be able compare to in that. And, you know, this is how the income side looks at it with your portfolio on the lot. And the benchmark on the right. The biggest discrepancy is sort of the darker green, piece of the pie. And though for U.S. Treasury Securities I have we've had a long-term underweight in Treasury securities. We just haven't felt that you get paid up. Or let's be honest about the greatest sheet in Washington. And then also there isn't a lot of people getting along and Washington, D.C., right now. So we're underway in Treasuries and trying to put opening of port fall. We'll in areas like asset-backed securities. We own about 6 and a half percent. There. while corporate and mortgages, you know, constructive on the economy in general. Constructed on a job market, that consumers are able to pay their debts, whether its mortgage auto. Auto payment and companies are enjoying very Marty said we we move through the late part of an economic cycle. So we're deciding to take overweight and some of those areas versus U.S. Treasuries. We think in the long term, you know, that going to pay out and added return. That comes from the extreme yield in the portfolio, probably have all that right now compared to where we have been historically on our wrists parameter, putting additional yield in the portfolio. We've been playing it close to the vest and not wanting to take unnecessary risks in one of the reasons for that is there's been a lot of corporate bond and I build out manifest itself in the huge companies are now, are we money to build centers and by the computers that will ultimately reside in data center to talk a lot of money to do that. They're coming to the bond market. So far the bond market's been much to that, but it's pushing a little bit wider during the interim. And that's, you know, ultimately we think an opportunity. But going through it something that decided to be market weight relative to the index within that space in general. On Page 9, I just wanted to give the board an update the man hear of one of the very highly rated portfolio be upper lot 60 about two-thirds of the portfolio are in double a credit or be better if you, you know, bring in the triple very conservative portfolio with their Triple B exposure right around 10% that the that we could pull to add yield in the future. But right now, actions in most Triple B securities, our at what one side, their historical averages. So we've been, you know, weighing up that pitch. a little baseball parlance on the lower right. The average yield the portfolio of this morning. When I look, there's about 5.2 7%. So you gone up over on the Have it on your portfolio. And I mentioned that only because yielded a pretty decent predictor of future returns. Bond investors. So I would say you have to take it with a grain of salt and patients as we move through this. You know what? It's turning out to be a rising interest rate environment driven by very, very inflation and the duration of the portfolio for your interest rate exposure is about 5.7 years. And that's a little bit underneath heat index will rates continue to rise and interim being under way to ration relative to the should benefit from slightly better than index performance. But no guarantees. As I make that statement any questions on characteristics of the portfolio. Get in quickly to the outlook the meeting back over to the port. >> The questions, you know, noted. >> don't Page real quick. The bond market have been. Fairly midst 30 the components that have delivered all open ear on day and in the market itself. We're certainly corporate on. But at the back on the been doing pretty well this year, the consumer has been. >> Up until recently enjoying wage gains and the employment put she page 14. >> I think it's important to look at the top right wrap that that the non-farm payrolls. There's a lot we think that that's been market play payroll role with drifting down over the 5 years. That's why people were thinking, well, the have to cut rate. The Fed have to cut rates and that the market was position going into 2020. The act. Fortunately, I get up or unfortunately depending on how you look at the world. Job growth has been better than expected and that caught the and the marketplace to what's going on interest rate cuts. Jobs have been and growing. latest reading I think was 162,000 pot shops. You know, thurston's expectations that were a lot more. I think it was around 32,000 that word. That's sports interest rate to some old tired people to rethink about what's going on in the marketplace. we Page 15. The chart that I look at every day actually page 15. >> The Strait of Hormuz up shipping traffic. a good proxy. What or isn't happening in the Middle when chart cut at the end of that were about. To be in the 20 moving through the Strait on any given day. That was a big hit from that sort of. But that through the early part of the conflict. Unfortunately, that that numbers back down to single digits moving through per day. Right now. So, you know, any point in the war is older or >> things are OK, all you have to do is look at what's through the Strait of Hormuz and it's virtually nothing right now. >> Until that changes. You're going to see very expensive oil that flows into the people prices which flows into everything that you and I by on the basis. So we keep a close eye on that one. Keeping up conservative tilt in the portfolio until something changes whether it's international policy or within Washington and we'll just try to be, you know. stewards of your money as we move forward. I thank you for the time. open it back up that you need follow on questions and I hope you guys have a good day. Thank you. >> Thank you for your presentation. You have any further comment. No, just thank you for questions from the Thank you, Joe. Ticket. >> Thanks chambers. Welcome back, right, introduce yourself for the Julie? >> Good morning. It's years. My name is Frank here representing Burgess Chambers and associates. >> Usually I will say I get to come to board meetings when the news are pretty bad. This I have a lot of incredible news to share, including a milestone achievement. This board of surpassing 400 million dollars. So what an accomplishment. So let's look at our report and I will be happy to, you know, tell a story along the way. But if you bear with being a let's H. So the good news for the page. 7 of our report while it's smart, preliminary, what you'll find on their the quarter column is that the a rate of return of 10.8% outperforming the target index by a wide margin and that represented roughly 39 million dollars and change as we evaluate the final figures. happy to report that your final figures are actually. Hi and welcome back to tell you why that that that is the case. And over the past year, you can see that the rate of return is 18.3% outperforming a lot of your large peers in the country. As you're aware, we not only monitor your plan that we really benchmark your plan against more than 500 other pension plans in the world. One in particular, that's been of news on the news lately. Is that Calpers, California pension, where they achieved a rate return of 14.5%. So as a board, your plan certainly has outperformed one of the largest pension plans in the world by a substantial margin. So really kudos to you guys. just wish we had their money, though. true, right? So we had a few more billions do would numbers quite a bit. so now, unless could ask you that. >> Look over to Page 19 of the report and then we're going to go backwards. So like to start with that. us a higher perspective before drilling into the individual components of your plan. But at the top level, as we evaluate your plan and these are the blue dots that we're going to monitor on the top left quadrant of the page. You'll see that your plan has achieved what we call top performances relative your pure group, 100% of the time. So 75% of the time going back last 10 years in rolling five-year blocks returns is actually ranked in the top 25th percentile. But but again, 100% of the time over rolling 5 year periods that your plan being some point is right has actually outperformed most of peers so game, really incredible news there. If you look at the 3 year, Mark, there were little blips on the radar, but nonetheless, we were never far away from the actual target objective that we had in mind. So despite the fact that the Max 7 has dominated all headlines and and that that the outside pressure of the stock market, we've actually been able to keep up and your managers to earn the credit for being able to participate in the upmarket as much as they have so get over all over longer periods as we translate the overall returns to get you. You have been truly one of the top in the country. So that coming back to Page 16. But this really highlights the fact that, you know, tension plans work and they work because you do money and that as as as gap between the blue line in the green line continues to widen that suggest that most of Europe growth in the plan comes from investment earnings. So if you think about this chart so 5 years ago, the starting point was 325 Million. But you actually paid out quite a bit of benefits. over that time period. The net cash flow for the pension plan is negative by tune of roughly called 100 million dollars. Right? So if you look at where the plant is is taking on more dispersants versus money coming in. But the blue line has widened because you've earned to said substantially more by way the vestments. So in net net gain, that's where you have seen your planned rise in total market values. And again, if you look at that May land a mark of 400 million dollars, and that is certainly a milestone for the Sarasota Police pension plan. And then a page 15, happy to share that. The great news here is that across the time periods weather is quarter fiscal 1, 3, 4, and 5 year periods. We've actually been able to outperform the targeted tax in all these trailing time periods. And that actually, right, you know, respective time periods. 4th, 4th, 6, 11th 12th and 27th. Again. We monitor your plan, but we're a Q gets more than 500 pension plans in the country. So as you know, as we look at some of these performances, you know, again of for the past year. I the top performer has been 19, but the media performer has really been 14 exactly where the Calpers have been. And the fact that you outperformed by more than 4% representative against the median of up her, it really is is the incredible And then let's come back to Page 13 of 14, starting with Page 13. Let's just remind everybody that your plan is 65 35 per folio. And 65% of that. portion is considered risk on and all of those assets are are on Page 13 and then on Page 14 are the risk off assets. And again, as we think about your plan, we like to think everything has equity, your equity substitutes or if their risk off their bond. In Bonn substitutes. So this case, what is you know, what your equities, right? Well, what our equity substitutes. So with an page 13, you have your traditional stocks. We also have your foreign securities infrastructure in convertibles, all of which we treat to be risk on components of your plan. Now, as mention in his presentation, you know what if we think about the Max 7 over the past 5 years, the market has really been on the up side because of 7 or 8 different securities and in our opinion, that's never sustainable. So what happened this quarter? While the S and P reached all-time highs. 24 times right during the 2nd quarter of this year, it was a process we have we really thought was was going to be favorable because now if you look away from the max 7 ce, so let's look at your front here. Let's look at your Franklin Templeton's or even your convertible securities, where you'll find the returns to be north of 30%. That says to us that the market is going through a rebalancing were equal lies, ation process. Instead of only 7 stocks leading the market, we actually have rest of the stock market participating and that provides a sense of sustainability in our mind if we continued on with I with the Max 7 leading the market entirely, then that actually suggest that we could have a larger pulled back. But in this environment, if we have rest of the market participating equally that that to us is a really good sign. Now I'm going to pause here to say there are some interesting changes that I've heard during the 2nd quarter. Okay. So let's talk about some of these changes. We have an IPO right of SpaceX. So SpaceX on June 12 by few, it was a company that's worth about 800 billion dollars before that post IPO became too trillion dollar company. So again, what we have ahead of us, our lineup of IPOs, right? Is that good for the stock market or is that bad for the stock market? Well, it's actually good for someone growth components. And again, as we think about growth managers, both all springs and granite owns Google owns shares of Amazon or Microsoft, although all Springs, just so Microsoft in the But what I say they are benefiting from the IPL UPS is because if you look at his past quarter, Google had a reported sales revenue of 119 billion dollars. No other net profits work. 112 billion dollars. So how did company sell 119 revenue gain 112 billion and in profits, right? That number doesn't that up. So as you go down to look at what is beneath that, 112 billion dollar number, it was actually 90 billion of that derive from SpaceX. What's fascinating about this environment is that Google has been an early investor in Space X all along. But with SpaceX marking their markets to 2 trillion dollars in value, guess what? Google gets the marked up their books on paper games. So with the expected IPO for open AI for and profit and several others out there. What we are like, does he is that corporate net profits are continue to be marked up. Right. So currently we have open AI out of the market raising about one on a valuation of 1.2 trillion dollars. But as they IPO, they're going to be another 2 trillion dollar company as well and drop. It is going to be another 2 trillion dollar company. So similar to SpaceX impact on the balance sheet of Google and Amazon where net earnings have increased by substantial margin on a surprise manner of Sipes prize. We're likely see the ongoing impact. IPO is again providing a positive impact on the market. So these are all positive trends, right? delivering a lot of good news ahead. But again, positive trends for the overall stock market. Now, what's also interesting during the past quarters that the Russell Index went through a large re constitution. So you had Amazon, Apple and Microsoft that used to be exclusively growth. Guess what happened on June? 27 Russell Index decided to cut these participants in half and shift it. 17% of those exposures so value historically were financials. Right? Energy now value settlement got 17% boost from those 3 stocks. So now going forward, even though we're pretty optimistic on some of these large tech companies. What we have to be mindful is what is valley, what is growth, right? So if you think about Newton as an example, actually owns Microsoft. Is that allowed as a value manager? Answer is yes, because Russell just have You know, Microsoft over and Google is over and so is so is my, you know, Apple, right? So as we think about the landscape of what is growth versus value this past quarter, Russell really started of women lines and our job just became a little bit more difficult because we now have to look at our valley manager to make sure they're not shooting by way owning too much intact and how much overlap or the growth manager have. And I'm happy to report that your 3 managers actually perform very distinctly so far. So good right? So you have granted partners that's paired against all springs and again, granite owned by herself all spring just sold. However, you have now, owns all spring Sunday, actually increase a position, right? So again, with the Max Evans still being a part of large part of the because the concentration, the market again, we just need to be little bit more mindful going forward because what Russell so again, just a little bit of nuance there at the same time, Russell, when they reconstituted the benchmark as I, you know, craziness have driven the market all higher right? We had 42 companies in the small cap that got lifted into the large cap. Now we have to evaluate whether frontier and frankly are holding on to companies that used to be small, but now they're big right or as frankly, it has asked the board to evaluate as we expand our definition? So one of the items as later coming up on the agenda is the discussion of a new investment policy. Franklin because they need to expand the number of opportunities with Russell reconstituting. So 70 stocks, mostly small cap, right? But we have that authority a cat that all moved up to the large cap space. Well, guess what? In the small cap space, even though some of the companies moved up, the largest companies, including it and twice file sizes. They're 12 10 billion dollars respectively. Right? So the get definition of small isn't necessarily what used to be where we all probably learned through different classes that if you're under 5 billion dollars in market cap, maybe you're small. But today's world, the upside of Russell 2000 benchmark as a small cap index is now at 12 billion, 12 and half billion. So the definition of small has also evolved. But again, it's really kicked up some of the small and the Russell growth is made up 4 extra percent vile met or or about tech companies. So we have kind of the shift that's happening in makes the certain investments that we have little bit more concentrated, right? Because now if we look at Franklin, their benchmark is to own 28% and vile attack. And we have to be mindful that they choose to be more defensive by only only 24% of all time. And perhaps that's reason that the underperformed during this past quarter. But again, we think, right, if we understand the philosophy and we we can, you know, compared against the benchmarks that were more comfortable, right, understanding that all of the nature of their versus what used to be just a month prior. Some I'm going to pause or I know that's very technical. But happy to pause or for second. Make sure there's no questions on on your domestic large and small cap managers. I'm glad that you're not just those very technical because I know needed to break down all of have I have is you're enthusiastic. Thank you. Thank you for us. always that stick. So then let's go down one item and now we can talk about international. So international us is is interesting, as we think about American funds, Euro Pacific. We actually just had a meeting with them in our office they don't roughly 350 securities on a worldwide scale. And along that 27% of their portfolio is considered to be emerging market. So the world of, you know, for investments, we not only have to worry about foreign policies. We also need to Morey about for So in this environment where the U.S. dollar has gone up to U.S. dollars gone. Dow, there's actually been a very impactful kind of experience for us to be invested in foreign investments. But I'm glad report that American funds, which is a long-term investment your portfolio has been here for a long time, right? And they produce the rate of return of 14.5% and they outperform their peers largely because they had 8% exposure to South Korea. So between South Korea and Taiwan, where, again, you think you've got a new companies like as a high tax that was recently listen to the New York Stock Exchange where or Nasdaq those companies that were IPO during this past quarter. All got a boost, right. But the ordinary shares of SK have always been traded in South Korea.o they along got a boost. And that was one of the largest contributors, 2 American funds portfolio. At the same time they don't. I want somebody conductors. So with this rising in the hyper Steelers I bowed out again, tie want somebody conductors have actually performed quite well for the So again, all in all American funds really stayed, you know, being able to pivot out of different parts of Asia over the past year has provided some of the upside, especially this court. So as of you know, maybe 3 months ago we had this fun to watch. But now as they perform really well and being able to pivot this we out, we're giving them some time within our own team to be able to recover fully. Do any of the investments in Taiwan making nervous just because of the political climate. So not yet. still think Taiwan is on in this state like Hong Kong you have different parts. China has, you know, put there fingers and public tears in Hong Kong, but they have not yet infiltrated as much time, right. And therefore, are, you know, president have actually now is that will have continued alliance with Japan, Taiwan, individually. So I think because of that, I want to actually created this because fear of tech and semiconductors and this bowed out of what's happening across the world. And so far they are truly operating kind of independently away from China's potential overwatch. So best to help. And you said it was a South Korean company that owns part of the time on semiconductors our yes, as K -1 of the largest. >> Kind of donors, right? So they have been listed but trade it all in South Korea. But they went IPO us understand just this. Thank you So that as we evaluate performance is further down. Again, this is a interesting >> year where everything was positive, but even our convertibles, which we did not to perform as well as our stocks to be up more than 37%. So between has SSI their their rate of return for the past year spent 37 38% on the idea that corporate issuance have continued to be very favorable comfortable. Securities is always been a a and the easy access point for Capitol, right. So if anyone is out there trying to raise money, Comer doubles is actually the quickest way for someone to issue debt and get that money. So we saw this past quarter, a lot of different corporations issue money, including Google, right, Google for the for the for the first time actually issued 100 year bond that investors can buy, which is fascinating, right? But again, as we think about the way that these I've go down and the money that it demands, the easiest way for a lot of these AI companies. Believe it or not covered of and Europe are fully has benefited from that because you have been invested in this space for a All right. Then let's go to bonds and bond replacements. I'm happy to share that year. And new investments with Cohen steers is finally reflected on this page. And as we evaluate it, that quarterly performance as you evaluate the prelim versus a final, this will be an area where it's going to have the largest difference we projected. We just that the preliminary rap performance for coldest years to be of similar to the index, which is maker of Odyssey. But as you look at your final performance for Cohen steers, that number has actually been marked up to be 5.8%. So during the past year, the board is evaluating Cohen steers and actually took money away from bonds. So for every dollar that you took away from bonds and funded Cohen steers, you gain an extra 6% in investments. So the decision by the board to rebalance away from traditional bonds into real estate in this environment work, Cohen has provided a new vehicle. An access point has really translated. Well and again, I'm happy to kind of share you with you that the for the prelim versus the final result where Cohen steers did deliver every return, a 5.8%. And that has been very helpful. And in an environment, right? You just saw out and for the period ending August the quarter day return for Bonds, actually native Bryce. So again, even in this environment, on a quarter of a basis, the replacement of bonds and moving that money into private real estate has provided additional benefits and therefore all the components within your plan, right has actually outperformed. And we don't have any issues with any of your managers today because truly, I think all of them are doing what they're asked to do. Your bottom managers, they're free Garcia, him said is most risk. And I asked is the least risk. So the pairing that you have across the board, right, whether it's granite versus all springs again, it's a very different for Foley and here in Bonds. You have Garcia and I ask all dressed very different bullies and now comes tears and JP Morgan, very different portfolios. So I think they're going to act in his own world to service question and damp winters within each respective asset classes. And really they're they're all kind of doing their job. So finally, has that translate into your compliance checklist on Page 6? I'm happy to maybe shut up there and say that every item on Page 6 was mark. Yes. And that means that your plan is not only in compliance across all sectors. You really did. So Anne Anne, fine fashion, right? Not only outperformed peers, but also ranking very favorably across all time periods. Good job of President. >> Thank report the letter good job. And beat up any grief and nowhere. Is great to go over. Some of or appreciate your time so much. Absolutely. Thank you all for your questions. >> noted. >> Yes, trying to do just to put it in perspective, our performance. Order today and year to date. We're in the top. 25. percentile of a lot of pension funds that you monitor, correct? >> And not only we monitor, but our entire universe. >> We are. We've got we're looking up. Will for a future matter. That's probably going to come up in a few minutes. If we have to take corrective action because of the fortune of performance that we've had. But what I'm saying, so when just want to get that might make sure we have that on the record and that that's the perspective that the more the paradigm that we've got to make some decisions here, I'm going on thank you. >> Never you had something. Yes, I just like to comment on the the new Cohen steers investment that we have. I mean, it is doing very well. But it I anticipate is going to cause some problems during the audit process because we don't get the final numbers until 75 days after the and the warrior, which could sit around December. The 15th for this year. And that's that's. That may or may not cause some problems and we can finalize our financial who live in Derry information to give to the auditors and it kind of rolls downhill from there because we have to give it to the actuary and also the final statements are part of the city's statement. So I just wanted to make make you aware that when do you usually hear it? Except the order when Wentz of presented to the court? The it's usually in February. But it's lower if we don't have the preliminary, the actual financial statements without the notes to the actuary from the external auditor, 5 December 31st. That. Possibly some slow down the actuarial valuation that would slow down the external auditor process. So I just wanted to make the border where of that. We Yes, we are pressuring Cohen steers do better. >> And they're doing their best to try to deliver it in 60 days or less. But since the project is relatively new, there's a lot of work to be It's a working will certainly admit to that. The active conversation that we have a coach tears as to possibly for them to specifically issue a separate statement by 40, 50. So we'll see what that looks like. So we are working on a solution and hopefully one that will make everyone happy stay tune and we're at. But I do want to make the border where that our team is in active discussion to put as much pressure on as possible. So some will receive. Hopefully you have mid November, I guess so. It should be some time just knew. Yes, some sort of indication just we don't know for sure if that's good enough for us and and or for the city. But either way, we're going to try to resolve this. It's time that I mean, affects a lot of boards minute. I'm probably about 20 of these contracts with Cohen steers last couple of We just got the 6.30, statements on September 15th. So that 75 it's not looking. >> I mean, the next quarter or year and yeah. And and for what it's worth, right. So if we think about an average pension plan, their exposure to alternatives, actually 33%, whereas your exposure to private real estate has altered a manager. It's around 5 to 6%. All right. So I other people have larger pain points. Some hoping that we can resolve yours right with with having a But but again, where we are going to try to resolve it quickly as any further questions. Thank you, Frank. You did good. Thank you give you a good report. I appreciate that. And then I'll stick around because I know that we have a couple other items on the on agenda. >> Next on the agenda, I would president, a presentation and letter. Just give 0.1. Yes, he just a I went down when you other not. >> We need the presentation discussion of the to investment policy statement. Yes of >> So I tried it set up for this discussion by way of index is changing right Small-caps getting bigger. So Franklin Templeton, your Skull Mall, cap growth manager. Historically they have been limited. 2 companies that were under 5 Billion. But with the index on the top and approaching 12 Million. They're simply asking extend their allowance to buy other securities within same universe. We don't have any issue with it. We actually think this provides them with the opportunity to find better opportunities than the existing said that they have. So we're asking the board for approval based on the REDLINE version in front of you. motion motion make the motion. second. We'll call ice share of 80. Yes, secretary Greg, trustee, Jodi Hudgens. >> Trustee, Grandpa Jones? Yes, I think what we have frank at the mike, there's just a >> on 12.1 that my There was a and to the capital management fee proposal self Frank, any comments on it? But you have of. Well, first, we have like to proceed with that ball. We have frank and known for. time beings. So at proposed a fee reduction from 0.8 0% 0.7, 2% on assets over 15 Million. So we do have with them. The present time Rex book about 24 million, 712. That's what it shows. So that would take effect. But I did draft end. I'm just acknowledging it was a feat. Decrease a must for you for Motion to motion that we a motion. >> We need those separately years and says we're someone there. >> a motion to accept the addendum to contract. >> I make that motion to accept incident happened. Capital Management, the proposal to have a second, a second. Vice chair Beatty. >> secretary Greg. trustee, Jodi Hudgens. Trustee Jen. Yes. Motion carries motion. >> Next on the agenda will be one thank you, sir, engaged leather. I'm sorry about had too many Thank you so I say, drawback. Good morning, everyone. Hope you do well as yourself right. >> My name is Daniel Anderson. I'm not a partner with moment. Jenkins who has overall responsibility for the plans 2026 fiscal year, an audit. We should have a copy of our proposed engagement letter for those audit services. Just quickly, you know, this is really the start of the audit A funny kind of mentioned were out in the hall that any time of year the weather is getting colder. It's getting warmer. So you're welcome. Very the cooler weather that we're expecting this weekend and then I'll see you again in February or so as we're fixing the to warm back you know, as far as the 2026 audit goes, there's really no new auditing standards that are being implemented. That would change anything that we had done in prior years. There's also new gas be pronouncements that need to be implemented. That really are going to impact the plan for the plant's fiscal year and financial statements. Yes, so I want to say a standard audit process that we're going to be going through. But, you know, we'll we'll certainly go through all the details of testing both the financial information as well as compliance with the summary plan document that we have done in prior years as well. The format of the engagement letter is a little bit different. If you're comparing it to what we've presented in prior years, it's really just a different where information is classified. The SEP a kind of released a New 10 put that we kind of follow as part of that process. So there's no really no different information. It's just presented differently from what we've seen in prior years. So we're certainly working looking forward to working with dead and her team again on this year's audit. I think our timeline is going to be very similar. You know, she had mentioned the question about the timing of the Cohen steers getting that statement December 15th. It does give us a brief amount of time to review it and actually audit before we're presenting that initial financial information to the actuaries for them to finish their valuation. But we do have plan to work for the same process we're pretty familiar with doing. Okay. We're going to test everything except for that. Once we get that information, we can go ahead. You know, making the adjustments necessary to account for what the change in that value is as of September. 30th. And then turning quickly back around to try and stay on the same time frame that we've been with the in prior years. hopefully it works out. You know, the alternative. What some plans choose to do is actually just take the value as of June, 30th and record that and their trial bounce. And then we just evaluate what the change in the value is from June 30th to September 30th to see its material or not. If it's an immaterial change. We can still proceed with the audit and say the financial statements are still free of material misstatement. As of those June 30 balances. But if it is a significant change that we do require that adjustment to the September amounts. So that's kind of a management decision on which route you want to choose but again, if we do just wait till December 15th, we will try our best to make sure everything stays on time. It doesn't have any delays in the audit because we know if he's to come to you guys. That needs to get in the city's financial statements. And we certainly don't want to be delaying that process. Number. We need a motion and we just can sense. >> I think the motion to accept motion. But water like to make just provide 16,000, I mean, what was it year? Wheelchair 50's. It went from 15 to 16, though. have a motion second. I'll make that motion. We have a motion and a second. >> may because much for Vice Chair Beatty. Yes, secretary Greg is trustee. Jodi Hudgens. >> the grant, yes. >> Thank you all very much. Thank you. Or could him. We are in this I would still, Governor attorney matters and than that, we do have that panned out. like hearing coming up on October, 21st, it will start after the firefighters meeting. So probably around. >> 30%, around 11 11, OK? So it has been noticed the hearing I we did send out I send out a pre-hearing requesting that the parties summit by October. First, all of their witness lists and an exhibit list and all of the documents they're going to be introduced evidence. So they will be a couple of deposition transcripts, something doctors I've not received them yet but should receive them by next week. So you'll have 3 weeks. Ye