Pension Review Committee

1 City of Gainesville Pension Review Committee Meeting MINUTES February 26, 2026, 9:00 a.m. City Hall, Roberta Lisle Kline Conference Room (Room 16) 200 East University Ave Gainesville, FL 32601 Members Present: Patrick Keogh, Harvey Lewis, David Rader, Jonathan Visscher Members Absent: Matthew Barker Others Present: Staff Present: William Johnston, Chief Investment Officer; Greg Williams, Sr. Analyst Others Present: Nick Hansen, DGI; Nick Iselin; DGI; Joe Neadeau, DGI; Brendon Vavrica, Mariner _____________________________________________________________________ A. CALL TO ORDER The meetings was called to order at 9:02 a.m. B. ADOPTION OF THE AGENDA Moved by David Rader Seconded by Patrick Keogh Approve. Approved C. APPROVAL OF THE MINUTES Moved by David Rader Seconded by Harvey Lewis 2 Approve as recommended. Approved as Recommended D. BUSINESS DISCUSSION ITEMS D.1 2026-72 Presentation by Disciplined Growth Investors (B) Nick Iselin of DGI reviewed the firm, and updated the Committee on changes in ownership as longer term employees transitioned some ownership to newer employees. Mr. Iselin also discussed a new mutual fund offered by DGI. Nick Hansen discussed DGI's investment philosophy, the portfolio's profile, strategic themes, and performance. DGI's market outlook, small and mid-cap valuations, the "Magnificent 7", and the tech sector were discussed. Mr. Hansen also discussed how DGI differed from many other investment managers with their focus on earning 12% annualized over 7 years rather than trying to beat a specific benchmark annually. Momentum stocks and their impact on passive equity indexing and valuations were also discussed, noting that many of the best performing stocks in the NASDAQ were companies that had no revenues and/or no profits. Mr. Hansen and Mr. Iselin also discussed the impact of shifts to passive indexing from traditional active investment. Recommendation: The Pension Review Committee hear a presentation and take any action deemed appropriate. D.2 2026-73 Presentation by Mariner (B) Brendon Vavrica of Mariner Consulting reviewed total Plan and individual manager investment performance relative to benchmarks. Plan investment returns through the quarter ending December 31, 2025, and month ending January 31, 2026, were reviewed, noting strong portfolio performance. Mr. Vavrica also shared a chart showing 100 years of S&P 500 Total Return Index Performance noting the historical annualized return of 10.49%, and that the occurrences within +/- 2% of that annualized return had only happened six times in history, indicating that returns between 8% and 12% rarely happened (93% probability it won't happen). There were no annual returns between 7.6% and 10.07%. This indicated that equity market tends to have large positive or negative annual returns (noting 38 years greater than 20% returns and only 6 years with -20% returns), which was reflected in the asset class's historical volatility. Mr. Vavrica also showed a chart with 100 years of bond market performance, noting much 3 less volatility, but much lower returns with only 12 of 100 years earning greater than 10%. Recommendation: The Pension Review Committee hear and discuss a presentation and take any action deemed appropriate. E. PUBLIC COMMENT F. MEMBER COMMENT G. NEXT MEETING DATE H. ADJOURNMENT The meeting was adjourned at 10:52 a.m.