Okay, all right. ‸ Well, ‸ we can let Brad go ahead then with his report.
Sheila, this is Paul.
Yes, hi, Paul.
If you're tracking,
[unclear audio — 0:02 ▶]
Flag: a language review questioned the wording · 00:00:12–00:00:14 · unresolved: the words are not shown (unclear audio); listen to the recording
Okay, good. Yeah, ‸ I was going to recheck them again like Monday or Tuesday after these meetings to be sure that everyone, and then I'll send a reminder to whoever hasn't.
[unclear audio — 0:01 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:00:36–00:00:44 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio ▶]
[unclear audio ▶]
[unclear audio — 0:01 ▶]
[unclear audio — 0:04 ▶]
All right.
Okay.
Good
morning,
everyone. Good morning.
Hi, bud.
Hey, Sheila. Hey, Stu.
Hi.
So I gave out both the last two quarters report. Okay,
[unclear audio ▶]
Flag: the machine readings disagree here · 00:00:58–00:00:59 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio ▶]
through the 331 since it's more updated. And it's obviously a little bit dated now, right?
[unclear audio — 0:02 ▶]
Flag: a language review questioned the wording · 00:01:03–00:01:05 · unresolved: the words are not shown (unclear audio); listen to the recording
I don't know if you follow this stuff on a day-to-day basis, but you might have heard there's been some activity since 331 in financial markets. There's been tariffs. There's been a lot of volatility. And I'll go through that.
[unclear audio — 0:05 ▶]
Flag: a language review questioned the wording · 00:01:21–00:01:26 · unresolved: the words are not shown (unclear audio); listen to the recording
kind of significant downturn after the tariffs were originally announced. And
[unclear audio — 0:06 ▶]
Flag: a language review questioned the wording · 00:01:30–00:01:37 · unresolved: the words are not shown (unclear audio); listen to the recording
And now positive fiscal year to date as well. So there's been a really strong bounce back. But I'll get into all of that. But even leading in, if you flip to page 3 of ‸ the March 31st report that's in front of you, you can see what, you know, the quarter leaning into the tariff announcements on April 2nd. We had a bit of a pullback for domestic equity in blue.
[unclear audio ▶]
Flag: a language review questioned the wording · 00:02:11–00:02:14 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio — 0:03 ▶]
The Russell 2000, which are small cap stocks, was down about 10%. You know, this is after two straight years of 20-plus percent return for the S&P 500. So we had a tremendous two-year period. Not many times in history where you get two years in a row of 20-plus.
[unclear audio — 0:07 ▶]
Flag: a language review questioned the wording · 00:02:35–00:02:42 · unresolved: the words are not shown (unclear audio); listen to the recording
a reason to sell. So after, you know, I guess the first month or so after the election, which was kind of a honeymoon period for the markets, you had the market starting to sell off, even leading in, just due to the uncertainty of what tariffs would bring. Because, you know, economic history tells us that tariffs increase prices and decrease economic growth.
[unclear audio — 0:04 ▶]
Flag: a language review questioned the wording · 00:03:10–00:03:14 · unresolved: the words are not shown (unclear audio); listen to the recording
the quarter ending March 31st. I think the positive is that everything else was positive in the quarter. So international stocks were up 5% in orange on the upper right-hand side there. Bonds, yields went down. Bond prices up ‸ about 3% in red, the U.S. aggregate bond index. You'll see later on, while we don't have it in this graph, real estate was positive in the quarter. And then also, if you flip to page 4, this shows you, in the U.S. equity markets, the difference. We talk about value stocks and growth stocks.
[unclear audio — 0:04 ▶]
Flag: a language review questioned the wording · 00:03:53–00:03:57 · unresolved: the words are not shown (unclear audio); listen to the recording
just been going gangbusters and leading markets. And we own those, and I'm happy we do. But in this quarter, you can see a bit of a step back, 10% down in red are the growth stocks. But value stocks, the other side of the market, the more stable, the Procter & Gamble, the Walmarts, energy companies are in there, financials, et cetera. With positive in blue, you can see the 1,000 value, large cap value, up 2%. So I think this was a good quarter that was illustrative of why we're diversified. We don't have all of our eggs in one basket, particularly for us as a pension, closed pension, paying out a lot more than is coming in, basically.
[unclear audio — 0:06 ▶]
Flag: a language review questioned the wording · 00:04:40–00:04:45 · unresolved: the words are not shown (unclear audio); listen to the recording
So we're diversified. ‸ We have money in stocks, but we de-risked over time to be prudent to make sure that we can pay those benefits every month. And also,
you
know, I've had, not you all, but other trustees ask, hey, why don't we have more money in growth stocks in the Magnificent Seven? You know, these stocks are doing great. Why do we own value stocks? Well, it's because we know the party doesn't go on forever, and this quarter shows that, right? So we maintain and diversify. We have targets in all of these different asset classes, and that's how we'll get to satisfactory results over the long term, by being disciplined and consistent, not getting, putting too many of our eggs in one basket, and doing that over time will lead to success. So that was kind of the story for the quarter.
[unclear audio — 0:05 ▶]
Flag: a language review questioned the wording · 00:05:30–00:05:35 · unresolved: the words are not shown (unclear audio); listen to the recording
The GDP last year was a little less than 3% growth last year. You know, we're looking at before tariffs, most people were expecting somewhere around 2% growth this year. So slowing a bit, as you would expect, given, you know, the Federal Reserve raising interest rates aggressively to fight inflation, but not falling off the cliff. The first quarter that came in was actually a negative GDP year-over-year growth number, but a lot of noise with the tariff announcements and things, you know, people buying things, import-export noise. But, you know, taking out the tariffs, you know, things, the economy will slow a little bit here this year, but not, you know, still grow positively, which is good. And then the other two main, you know, things that we look at, right? So economic growth, you look at employment, and you look at inflation, right? Because that's ‸ really what the Federal Reserve is focused on when they're making decisions on interest rates, which really, you know, the market drives, you
know,
takes excuse from. So growth is slowing but positive. Employment is still strong at just over 4% national unemployment. So it's holding in very strong, a little bit up from its low. But, you
know,
you look at a
[unclear audio — 0:05 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:06:53–00:06:58 · unresolved: the words are not shown (unclear audio); listen to the recording
It's very low historically. So the economy is strong from an employment standpoint. And then we were kind of, you know, to remind you, right, a couple years ago, we were at 9% inflation, CPI, which is why the Federal Reserve started increasing interest rates aggressively. Fast forward, last year we were kind of stubborn at 3%, and they're trying to get to 2%. The last two readings have been closer to that 2%, around 2.5%. So we're making more progress, again, not including the tariff impacts, but progress towards kind of a normalized inflation rate in the economy. So everything seemed good. You
know,
you look at the earnings and the revenues that the, you
know,
the main companies, Microsoft, Amazon, Walmart, Procter & Gamble, everything looked pretty good there. Now, the monkey wrench is the inflation, and that caused a lot of consternation. So April 2nd,
[unclear audio — 0:01 ▶]
Flag: a language review questioned the wording · 00:07:53–00:07:55 · unresolved: the words are not shown (unclear audio); listen to the recording
I'm going to steal a line from an investment manager I heard.
[unclear audio — 0:05 ▶]
Flag: a language review questioned the wording · 00:07:58–00:08:03 · unresolved: the words are not shown (unclear audio); listen to the recording
day because
[unclear audio — 0:06 ▶]
Flag: a language review questioned the wording · 00:08:05–00:08:11 · unresolved: the words are not shown (unclear audio); listen to the recording
than anyone was anticipating.
[unclear audio — 0:07 ▶]
Flag: a language review questioned the wording · 00:08:14–00:08:21 · unresolved: the words are not shown (unclear audio); listen to the recording
which we have some tariffs right now,
[unclear audio — 0:04 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:08:23–00:08:27 · unresolved: the words are not shown (unclear audio); listen to the recording
it to 20% to 25% depending upon how you measure it.
[unclear audio — 0:05 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings; a language review questioned the wording · 00:08:30–00:08:35 · unresolved: the words are not shown (unclear audio); listen to the recording
a very, like, protectionist type of mindset in the country to get to tariff levels of what was announced on April 2nd. And, you know, one of the great things besides our economic or our political system, which has hypothetical checks and balances, right, you have three main branches of government. We also have free markets that also get to vote. So you have a bond market and a stock market that ‸ gives real-time feedback on policy decisions, and both of those voted aggressively and violently that these were not good tariffs. You had the stock market. So these were announced on Wednesday, April 2nd, after the market closed. Thursday, the S&P 500 was down 5%. Friday, the S&P was down another 5%.
[unclear audio — 0:03 ▶]
Flag: a language review questioned the wording · 00:09:31–00:09:34 · unresolved: the words are not shown (unclear audio); listen to the recording
after being down even more in the beginning part of that day. But we had a three-trading-day period of an 11% loss in the S&P 500. There's not many times in history you've had that severe of a downturn in three days. And then, well, you know, those first two days, bond yield went down and the 10-year Treasury price went up is what you would expect, right? You expect you sell your risk assets in stocks and you buy the safety of a Treasury bond.
[unclear audio — 0:02 ▶]
Flag: a language review questioned the wording · 00:10:09–00:10:12 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio — 0:13 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings; a language review questioned the wording · 00:10:12–00:10:24 · unresolved: the words are not shown (unclear audio); listen to the recording
So bond prices go down. So people selling bonds during that period.
[unclear audio — 0:08 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings; a language review questioned the wording · 00:10:30–00:10:38 · unresolved: the words are not shown (unclear audio); listen to the recording
But we haven't seen that in about 40 years, going back to the 80s. So you had
stock
Flag: words were replaced by a machine repair · 00:10:43–00:10:43 · machine repair: words replaced where two further machine readings agreed (not checked by a person)
selling off, you had bonds selling off, and you had the U.S. dollar selling off.
[unclear audio — 0:02 ▶]
Flag: a language review questioned the wording · 00:10:49–00:10:51 · unresolved: the words are not shown (unclear audio); listen to the recording
Which all kind of, I think,
[unclear audio — 0:01 ▶]
Flag: the machine readings disagree here · 00:10:56–00:10:57 · unresolved: the words are not shown (unclear audio); listen to the recording
into some of the easing of the rhetoric that came out from the administration in the latter part of April and deals getting done, et cetera.
And,
you know, you've seen a tremendous recovery in stock prices. So at one point at the low, the S&P 500 was down, was negative 15% on a year-to-date basis. We're now positive 3% or 4%. I think it's down today. When I was driving in, I heard, but a 1%. But we're still positive for the year. So that just shows you at one point we were down 15%. Now we're plus 3%.
[unclear audio — 0:01 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:11:37–00:11:37 · unresolved: the words are not shown (unclear audio); listen to the recording
It's a big jump. That's like a 20% jump to get us into positive
level
Flag: words were replaced by a machine repair · 00:11:43–00:11:43 · machine repair: words replaced where two further machine readings agreed (not checked by a person)
So,
you know, tremendous, tremendous.
[unclear audio — 0:04 ▶]
Flag: a language review questioned the wording · 00:11:47–00:11:50 · unresolved: the words are not shown (unclear audio); listen to the recording
I think long term we're going to be fine. We'll work through this. The pension will be fine. But this ‸ bounce back seems, I mean, there's still a lot of trade deals to get done. It seems a little bit speculative. And a little bit, you know, the market's being a little bit overly optimistic because we're still going to get tariffs. Tariffs are still, even if they're not as bad as what was announced, tariffs in general aren't good. Like, you know, free trade is good for everyone, I think. Now, there's some imbalances that I understand that need to get corrected. You know, it doesn't seem fair. Some of the deals that we have, right?
You
know, like,
we
can't, you know, Japan can sell Toyotas here, carte blanche, but we can't sell an F-150 over in Japan, right? So, there's some things that need to get rectified, no doubt.
[unclear audio — 0:06 ▶]
Flag: a language review questioned the wording · 00:12:35–00:12:41 · unresolved: the words are not shown (unclear audio); listen to the recording
to try to get deals done. There's a lot of trade deals to get done in 90 days. So, I still think there's going to be some volatility here. I'm going to take the positive returns.
[unclear audio — 0:04 ▶]
Flag: a language review questioned the wording · 00:12:48–00:12:52 · unresolved: the words are not shown (unclear audio); listen to the recording
of that and kind of do a small rebalance and sell some of our growth stocks that have bounced back a lot. But if we can get just a positive return this fiscal year, I'll take it. I think there's still, you know,
some
volatility to go.
[unclear audio — 0:04 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings; a language review questioned the wording · 00:13:07–00:13:11 · unresolved: the words are not shown (unclear audio); listen to the recording
just think everything's rose. You know,
[unclear audio — 0:02 ▶]
Flag: a language review questioned the wording · 00:13:13–00:13:15 · unresolved: the words are not shown (unclear audio); listen to the recording
whatever tariffs get announced. And, like I said, you know, it's very volatile right now. One tweet from the president can shift markets 1,000 points up or down just depending upon the tenor of it.
[unclear audio — 0:02 ▶]
Flag: a language review questioned the wording · 00:13:27–00:13:29 · unresolved: the words are not shown (unclear audio); listen to the recording
You know,
like,
you know, President Xi is my friend.
[unclear audio — 0:01 ▶]
Flag: a language review questioned the wording · 00:13:32–00:13:33 · unresolved: the words are not shown (unclear audio); listen to the recording
The market goes up. And, you know, conversely, oh, you know, the Chinese is taking ‸ advantage of us. You see the market go down. So it's very volatile right now. You know, I sent an email out ‸ to you all. I don't know ‸ if you saw this. But the week after the tariff announcements. Just kind of reiterating kind of what we talk about all the time. We're a pension fund. We're built structurally to withstand all of ‸ these short-term market fluctuations. We've already done the work to de-risk this pension in line with the demographics, right?
[unclear audio — 0:05 ▶]
Flag: a language review questioned the wording · 00:14:07–00:14:12 · unresolved: the words are not shown (unclear audio); listen to the recording
But just by structure,
you
know, even though a closed plan, this is going to be around for another maybe 50 years, right?
[unclear audio — 0:05 ▶]
Flag: a language review questioned the wording · 00:14:18–00:14:24 · unresolved: the words are not shown (unclear audio); listen to the recording
with a lot of optionality when you deal with these tough times.
[unclear audio — 0:04 ▶]
Flag: the recognizer flagged its own output; a language review questioned the wording · 00:14:29–00:14:32 · unresolved: the words are not shown (unclear audio); listen to the recording
advantage of them if need be, right? So that was a lot to kind of, you know, go through. Any questions on anything that you all are hearing about or reading about in terms of tariffs, economy, markets, anything before I get into the plan? All right. Give me one minute. I'm going to fire on my computer here because before I drove over from Orlando, I went to the region's website and pulled the updated market value. So I want to give you that number that I have. But if you flip to page 14 and 15, you can see the side by side of December 31st on the left hand side and March 31st. So 13.46 on
[unclear audio — 0:03 ▶]
Flag: a language review questioned the wording · 00:15:40–00:15:43 · unresolved: the words are not shown (unclear audio); listen to the recording
We actually had a small,
[unclear audio — 0:02 ▶]
Flag: a language review questioned the wording · 00:15:45–00:15:48 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio — 0:02 ▶]
Flag: a language review questioned the wording · 00:15:48–00:15:50 · unresolved: the words are not shown (unclear audio); listen to the recording
So because of our more conservative positioning, you did better ‸ than most pension funds in the quarter in that down market. But to give you the updated number
[unclear audio — 0:07 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:15:59–00:16:07 · unresolved: the words are not shown (unclear audio); listen to the recording
And then, you know, we don't have anything coming in and we're paying out more, right? So if I just add what, I don't have the number, but if I add what we paid out last quarter to that
[unclear audio — 0:05 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:16:18–00:16:23 · unresolved: the words are not shown (unclear audio); listen to the recording
So from a performance perspective, the
pensions that
Flag: words were replaced by a machine repair · 00:16:25–00:16:26 · machine repair: words replaced where two further machine readings agreed (not checked by a person)
about, you know, somewhere between positive three to positive four percent since 331,
[unclear audio — 0:02 ▶]
Flag: a language review questioned the wording · 00:16:31–00:16:33 · unresolved: the words are not shown (unclear audio); listen to the recording
Now one thing I wanted to point out, if you go to page 15 on the right hand side, they talked about us having growth and value stocks in the portfolio. You can see the Winslow Large Cap Growth Fund, which is ‸ a CIT that's custody outside of the main region's account. So most of our rebalancing when we raise money for benefits happens in the region's account. We have a dedicated kind of,
[unclear audio — 0:02 ▶]
Flag: a language review questioned the wording · 00:17:13–00:17:15 · unresolved: the words are not shown (unclear audio); listen to the recording
But the Winslow doesn't get touched unless we make the decision to do that. So you can see we had about $1.9 million at 331 in there. And then if you go down to Brandywine Global, which is our value fund, that was at about 1.5. And the updated numbers that I have are Winslow's at 2.17, and Brandywine's still at about 1.5. So what I would like to suggest and recommend to you all is that we take a small, you know, just normal reduction, kind of sell high,
given this
Flag: words were replaced by a machine repair · 00:17:55–00:17:55 · machine repair: words replaced where two further machine readings agreed (not checked by a person)
bounce back in growth stocks, and take that Winslow down by $250,000. So we would do a redemption into the
[unclear audio — 0:03 ▶]
Flag: a language review questioned the wording · 00:18:09–00:18:12 · unresolved: the words are not shown (unclear audio); listen to the recording
of $250,000, have them wire it to regions, and then add to ‸ the Brandywine Large Cap Value ETF that we own. So it would be minus $250,000 from Winslow
[unclear audio — 0:04 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:18:28–00:18:32 · unresolved: the words are not shown (unclear audio); listen to the recording
Brad, Mr. Sheila, will you prepare the document for the chairman to sign if they approve this change?
I don't have that with me, Sheila, so...
Okay, no, I mean, you'll email it to
[unclear audio — 0:01 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:18:49–00:18:50 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio ▶]
yeah, absolutely, I can do that. Okay. I would do that. Okay. That's if it's approved, so I'd be happy to answer any questions from the board about that recommendation. But if you don't, that would require a motion and you ought to approve it.
We have a motion. I'll make a motion.
[unclear audio — 0:02 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:19:06–00:19:09 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio ▶]
second approval.
[unclear audio — 0:03 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:19:11–00:19:13 · unresolved: the words are not shown (unclear audio); listen to the recording
All right, we'll get it done. Thank you.
[unclear audio ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:19:18–00:19:18 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio ▶]
Okay, thank you.
[unclear audio — 0:01 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:19:25–00:19:26 · unresolved: the words are not shown (unclear audio); listen to the recording
Going back to the book on page 17, just to show you the asset allocation relative to our targets. Yeah, we're pretty close at 331, and when I ran the numbers as of today, we're basically right on top of our targets for everything, other than we're still a little overweight to real estate.
[unclear audio — 0:03 ▶]
Flag: a language review questioned the wording · 00:19:49–00:19:52 · unresolved: the words are not shown (unclear audio); listen to the recording
When we updated the IPS a year and a half ago, I recommended, hey, let's go down to 10% given we're now in a decent interest rate environment, but it's taken a while kind of to get our money back to get to that target. So we're a little overweight that. We're working on it to get back. ‸ Once we get back to target, then we
[unclear audio — 0:04 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:20:10–00:20:15 · unresolved: the words are not shown (unclear audio); listen to the recording
still get back from them.
[unclear audio — 0:04 ▶]
Flag: a language review questioned the wording · 00:20:16–00:20:20 · unresolved: the words are not shown (unclear audio); listen to the recording
place we're overweight really. Page 18 shows you the activity for the quarter. Well, since we didn't meet last quarter, maybe we'll go to page 19.
[unclear audio — 0:03 ▶]
Flag: a language review questioned the wording · 00:20:33–00:20:36 · unresolved: the words are not shown (unclear audio); listen to the recording
So you can see on October 1st, the total fund at $14.2 million.
[unclear audio — 0:05 ▶]
Flag: a language review questioned the wording · 00:20:43–00:20:48 · unresolved: the words are not shown (unclear audio); listen to the recording
below and need to raise cash to pay benefits or pay the bills, et cetera, we have a standing letter
of
Flag: words were replaced by a machine repair · 00:20:55–00:20:56 · machine repair: words replaced where two further machine readings agreed (not checked by a person)
direction on file with Regions.
[unclear audio — 0:03 ▶]
Flag: a language review questioned the wording · 00:21:01–00:21:04 · unresolved: the words are not shown (unclear audio); listen to the recording
own there to raise the
[unclear audio — 0:02 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:21:06–00:21:08 · unresolved: the words are not shown (unclear audio); listen to the recording
our fixed income manager, to do that. So you can see ‸ that's all what happened. The big one was, you know, last time we met, we did, I recommended that we, given the, you know, the strength in those growth stocks, we ‸ sold ‸ a bit at that about a year ago.
[unclear audio — 0:02 ▶]
Flag: a language review questioned the wording · 00:21:25–00:21:27 · unresolved: the words are not shown (unclear audio); listen to the recording
months ago. But that ‸ shows you all the activity that came in. So
[unclear audio ▶]
Flag: the machine readings disagree here · 00:21:31–00:21:32 · unresolved: the words are not shown (unclear audio); listen to the recording
net result was, you know, we raised about a million dollars of equities and sold equities ‸ over the last six months to
[unclear audio — 0:03 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:21:39–00:21:42 · unresolved: the words are not shown (unclear audio); listen to the recording
benefits during that time. So,
you
can see, you know, management fees are mostly in institutional mutual funds.
[unclear audio — 0:04 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings; a language review questioned the wording · 00:21:51–00:22:01 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio ▶]
[unclear audio — 0:06 ▶]
If you guys go to the conferences, all that comes out of the other expenses. You see that was 43,718 during the first half of this fiscal year. We had dividends and income of about $235,000 and then a
[unclear audio — 0:06 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:22:16–00:22:22 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio — 0:06 ▶]
Flag: a language review questioned the wording · 00:22:27–00:22:33 · unresolved: the words are not shown (unclear audio); listen to the recording
overall pension. So for the quarter,
you
know, net of fees, we were slightly negative, 0.04%. You know, fiscal year to date,
[unclear audio — 0:03 ▶]
Flag: a language review questioned the wording · 00:22:45–00:22:48 · unresolved: the words are not shown (unclear audio); listen to the recording
You can see the numbers in parentheses where you rank relative to other pension funds, right? In a really strong market, given how we're positioned, closed, you know, we only have, you know, only about 50% of our money in equity.
and
Flag: words were replaced by a machine repair · 00:23:00–00:23:00 · machine repair: words replaced where two further machine readings agreed (not checked by a person)
open pension, you know, you talk to those, they're having 60, sometimes 70% in equity. So we're not going to do as well in the really good times. But when the market's down, we should do better than most pensions. And that's what you see. We rank 22nd, so we beat, you know, 68% of your national peers of public funds, fiscal year to date, in a negative market. That's what I would expect. So it's good to see that it's kind of doing what we would expect. Long-term results continue to be outstanding here. Over the last decade,
you
know, 7.3 net of fees, you rank 12th percentile.
[unclear audio — 0:06 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings; a language review questioned the wording · 00:23:37–00:23:43 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio — 0:07 ▶]
Flag: a language review questioned the wording · 00:23:44–00:23:50 · unresolved: the words are not shown (unclear audio); listen to the recording
know, it's, you know, not just smaller funds like ‸ you
also
Flag: words were replaced by a machine repair · 00:23:54–00:23:55 · machine repair: words replaced where two further machine readings agreed (not checked by a person)
I think that kind of, those numbers kind of speak for itself, given the stewardship of this board and what we've been able to accomplish from an investment perspective.
[unclear audio — 0:01 ▶]
Flag: the recognizer flagged its own output · 00:24:02–00:24:03 · unresolved: the words are not shown (unclear audio); listen to the recording
The individual investments, everyone performed in line with expectations.
[unclear audio — 0:06 ▶]
Flag: a language review questioned the wording · 00:24:11–00:24:17 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio ▶]
Flag: a language review questioned the wording · 00:24:17–00:24:20 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio — 0:02 ▶]
We know all active managers go through periods of outperformance and underperformance. They've had some issues the last two years. I don't think there's any change to their process. I don't, there's no changes to the team that has managed that fund relatively successfully. You can see since inception on the right-hand side
[unclear audio — 0:04 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:24:37–00:24:41 · unresolved: the words are not shown (unclear audio); listen to the recording
them back in 2016. They've done about a percent better than the index and
rank
Flag: words were replaced by a machine repair · 00:24:46–00:24:46 · machine repair: words replaced where two further machine readings agreed (not checked by a person)
in the top 30th percentile of their peer group. So just going through a tough period right here. You know, we want to see active managers over
[unclear audio — 0:01 ▶]
Flag: the machine readings disagree here · 00:24:54–00:24:54 · unresolved: the words are not shown (unclear audio); listen to the recording
outperform. You know, if it continues on, you know, maybe we'll start getting concerned. But I don't think it's at a point where we need to take action. It's just something that we're monitoring.
[unclear audio — 0:02 ▶]
Flag: a language review questioned the wording · 00:25:03–00:25:05 · unresolved: the words are not shown (unclear audio); listen to the recording
So other than that, everything else is kind of trending exactly how we would expect. The Winslow Fund did a good job protecting capital and did ‸ about a point and a half,
[unclear audio — 0:03 ▶]
Flag: the recognizer flagged its own output · 00:25:18–00:25:21 · unresolved: the words are not shown (unclear audio); listen to the recording
So that was good.
[unclear audio — 0:05 ▶]
Flag: a language review questioned the wording · 00:25:22–00:25:28 · unresolved: the words are not shown (unclear audio); listen to the recording
And you can see, I talked about the growth stocks doing worse than value stocks. U.S., that happened domestic or internationally as well. So remember a couple
[unclear audio — 0:02 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:25:40–00:25:42 · unresolved: the words are not shown (unclear audio); listen to the recording
That's our value equity fund for international stocks. That fund was up 10% last quarter. It did better than any index.
[unclear audio — 0:02 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:25:49–00:25:51 · unresolved: the words are not shown (unclear audio); listen to the recording
fund.
You
know, it did better than its index, what was up 2.6. So I like how those funds are kind of interacting with each other. When one does well, the other one kind of, you know, they're just finding exactly what we
wanted
Flag: words were replaced by a machine repair · 00:26:03–00:26:03 · machine repair: words replaced where two further machine readings agreed (not checked by a person)
to diversify our international equity pool well. And for the quarter,
[unclear audio — 0:05 ▶]
Flag: a language review questioned the wording · 00:26:10–00:26:14 · unresolved: the words are not shown (unclear audio); listen to the recording
4.3% versus the policy index. So that was good. Adjunct court, you know, we're very conservative there. It's an intermediate mandate. We don't own 30-year bonds, right? Everything we own is between 0 and 10 years. So we're not taking as much interest rate risk as the overall kind of, say, the U.S. aggregate bond index.
[unclear audio — 0:02 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:26:35–00:26:36 · unresolved: the words are not shown (unclear audio); listen to the recording
One-year return of 5.6%, which is nice, right? You
know,
we went through a decade of where we got, you
know,
barely anything from our fixed income. So it's good to finally get into a period here where we're getting more normalized, you know, 4%
or
5% returns in our fixed income portfolio. And then the PIMCO Global Bond Fund has been a great add for us, particularly relative to other global bond managers. You can see we added that one back at the end of 2020 on the right-hand side of the page. That's had a positive return. And the average fund in that area was down 3% during that same time period.
[unclear audio — 0:05 ▶]
Flag: a language review questioned the wording · 00:27:14–00:27:20 · unresolved: the words are not shown (unclear audio); listen to the recording
And then page 22,
[unclear audio — 0:03 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:27:24–00:27:27 · unresolved: the words are not shown (unclear audio); listen to the recording
own stocks and bonds with a focus on income. Both had nice returns in the quarter of
[unclear audio — 0:05 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:27:33–00:27:37 · unresolved: the words are not shown (unclear audio); listen to the recording
the BlackRock Fund.
[unclear audio — 0:05 ▶]
Flag: a language review questioned the wording · 00:27:39–00:27:44 · unresolved: the words are not shown (unclear audio); listen to the recording
So this is the second positive quarter in a row for commercial real estate after eight negative quarters in a row. So starting to get more normalization there. The way that the return is being generated is basically, so there's two components, right? You have your income component where we're getting about a 4% yield on that portfolio, annualized. And then you have the capital appreciation component. So the capital appreciation component is flat. The things went down and now are kind of stabilizing. And now we're just getting kind of that income component over the last couple quarters.
[unclear audio — 0:09 ▶]
Flag: a language review questioned the wording · 00:28:16–00:28:25 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio — 0:04 ▶]
Flag: a language review questioned the wording · 00:28:26–00:28:30 · unresolved: the words are not shown (unclear audio); listen to the recording
of it being negative.
[unclear audio — 0:02 ▶]
Flag: a language review questioned the wording · 00:28:32–00:28:34 · unresolved: the words are not shown (unclear audio); listen to the recording
Any questions on the investments in your pension?
No.
All right. Well, that's all I had for you all. So I'll get all the stuff drafted for the rebalance and get that to Sheila for signatures.
And
we'll get that implemented.
[unclear audio ▶]
Flag: numbers, amounts, negation or names differ between the machine readings; the recognizer flagged its own output · 00:29:02–00:29:04 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio — 0:01 ▶]
[unclear audio — 0:07 ▶]
Flag: the recognizer flagged its own output · 00:29:04–00:29:11 · unresolved: the words are not shown (unclear audio); listen to the recording
If something crazy happens and I think we should have a special meeting, I'll make sure to reach out to you all. I hope that's not the case. But ‸ we always have that option. We don't have to meet every six months. We meet more often. We can call a special meeting. If need be, I'll knock on wood that's not going to be needed. But I'll certainly communicate with you all as things start to, you know, the data starts pouring in and we start to see what the ultimate effects of this stuff will be. And if we need to make any moves ‸ for the long-term health of the pension, we'll make sure to communicate that with
you.
All right.
Thank you, Brian.
Sheila, you're up.
Okay. I just have a few items or a couple of items that aren't disinformational.
[unclear audio — 0:07 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings; a language review questioned the wording · 00:29:59–00:30:06 · unresolved: the words are not shown (unclear audio); listen to the recording
And since we won't meet again until November, he has agreed to be reappointed. And this is an appointment by the board. So we'd like to have a motion to appoint Greg Torbett to a new term ending September 30th of 2028.
[unclear audio — 0:02 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:30:29–00:30:39 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio — 0:01 ▶]
[unclear audio — 0:02 ▶]
[unclear audio ▶]
[unclear audio ▶]
[unclear audio — 0:01 ▶]
[unclear audio ▶]
And thank you, Greg, for agreeing to say it. I want
[unclear audio — 0:08 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings; a language review questioned the wording · 00:30:45–00:30:53 · unresolved: the words are not shown (unclear audio); listen to the recording
I had talked to him, and he is willing to be reappointed. So I'll let the city clerk know that he requests
re-employment
Flag: words were replaced by a machine repair · 00:31:01–00:31:02 · machine repair: words replaced where two further machine readings agreed (not checked by a person)
for a new term from October 1 of this year to September 30th of 2028. And she'll provide forms to him of whatever he needs to do. So
[unclear audio — 0:05 ▶]
Flag: a language review questioned the wording · 00:31:14–00:31:20 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio — 0:05 ▶]
Flag: a language review questioned the wording · 00:31:21–00:31:25 · unresolved: the words are not shown (unclear audio); listen to the recording
And then our next semiannual meeting will be
[unclear audio — 0:02 ▶]
Flag: a language review questioned the wording · 00:31:30–00:31:32 · unresolved: the words are not shown (unclear audio); listen to the recording
So if you will mark your calendars on that. And unless there are any questions on any of those items,
[unclear audio — 0:06 ▶]
Flag: a language review questioned the wording · 00:31:42–00:31:47 · unresolved: the words are not shown (unclear audio); listen to the recording
Do we need a motion on that?
[unclear audio — 0:03 ▶]
Flag: a language review questioned the wording · 00:31:53–00:31:55 · unresolved: the words are not shown (unclear audio); listen to the recording
down there, we do need to ratify everything.
[unclear audio — 0:01 ▶]
Flag: a language review questioned the wording · 00:32:02–00:32:03 · unresolved: the words are not shown (unclear audio); listen to the recording
I'm having trouble understanding what you're
saying.
Oh,
okay. I
[unclear audio ▶]
Flag: the machine readings disagree here · 00:32:06–00:32:06 · unresolved: the words are not shown (unclear audio); listen to the recording
if we're at the payments and deposits, unless there's a question on any items, yes, we need a motion to ratify those disbursements and deposits.
Okay. Do we have a motion?
Yeah, I
have
a motion. Greg. I'll second.
[unclear audio — 0:01 ▶]
Flag: a language review questioned the wording · 00:32:27–00:32:28 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio — 0:01 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:32:29–00:32:30 · unresolved: the words are not shown (unclear audio); listen to the recording
Aye.
Done
Flag: words were replaced by a machine repair · 00:32:32–00:32:33 · machine repair: words replaced where two further machine readings agreed (not checked by a person)
deal.
Okay. I would mention here, too, Paul will be attending the conference at the end of this month. And
will
Flag: words were replaced by a machine repair · 00:32:47–00:32:47 · machine repair: words replaced where two further machine readings agreed (not checked by a person)
report to us afterward. And any information that Paul, that you feel needs to get to the board, you know, before our November meeting, just let me know. Okay?
Okay.
‸ I
guess that brings us to any trustee report or discussion. ‸ I think everybody's ready to go eat lunch.
Okay. So with that, the chairman can adjourn the meeting at 1135.
Meeting adjourned.
[unclear audio — 0:01 ▶]
Flag: the recognizer flagged its own output · 00:33:22–00:33:24 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio — 0:01 ▶]
[unclear audio ▶]
Flag: the machine readings disagree here · 00:33:25–00:33:50 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio ▶]
[unclear audio ▶]
[unclear audio — 0:03 ▶]
[unclear audio — 0:01 ▶]
[unclear audio ▶]
[unclear audio — 0:04 ▶]
[unclear audio — 0:07 ▶]
[unclear audio — 0:03 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings; the recognizer flagged its own output; a language review questioned the wording · 00:33:51–00:34:03 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio ▶]
[unclear audio — 0:10 ▶]
[unclear audio — 0:05 ▶]
Flag: the recognizer flagged its own output · 00:34:03–00:34:08 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio — 0:04 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings; the recognizer flagged its own output · 00:34:08–00:34:21 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio — 0:01 ▶]
[unclear audio — 0:03 ▶]
[unclear audio — 0:04 ▶]
[unclear audio — 0:02 ▶]
[unclear audio — 0:01 ▶]
Flag: the recognizer flagged its own output · 00:34:21–00:34:22 · unresolved: the words are not shown (unclear audio); listen to the recording
loaned them some money.
Flag: the recognized words and the detected speech do not line up · 00:34:22–00:34:24 · gap filled by a machine re-reading (not checked by a person)
Oh,
[unclear audio ▶]
Flag: the machine readings disagree here · 00:34:24–00:34:24 · unresolved: the words are not shown (unclear audio); listen to the recording
So, anyhow, while I was over at the bank, the guy in front of me was upset because he has a business account and a personal account.
Flag: the recognized words and the detected speech do not line up · 00:34:26–00:34:38 · gap filled by a machine re-reading (not checked by a person)
And he needed
more checks, and
they were
Flag: words were replaced by a machine repair · 00:34:38–00:34:39 · machine repair: words replaced where two further machine readings agreed (not checked by a person)
charging the checks. ‸ One
positive from an economic side.
[unclear audio — 0:08 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings; the recognizer flagged its own output; a language review questioned the wording · 00:34:43–00:34:51 · unresolved: the words are not shown (unclear audio); listen to the recording
I had
him
Flag: words were replaced by a machine repair · 00:34:51–00:34:51 · machine repair: words replaced where two further machine readings agreed (not checked by a person)
look up for the
last
10 or 15 years and I called national
To the point we actually are. We used to be a big importer of oil.
[unclear audio ▶]
Flag: the machine readings disagree here · 00:34:59–00:35:01 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio ▶]
[unclear audio ▶]
[unclear audio ▶]
[unclear audio ▶]
[unclear audio — 0:01 ▶]
And they pulled the same thing. That they had sent a letter out to everybody last
year
So that's one thing that has changed ‸ over the last decade or so. that
[unclear audio — 0:02 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings; the recognizer flagged its own output · 00:35:09–00:35:11 · unresolved: the words are not shown (unclear audio); listen to the recording
the
US economy
[unclear audio — 0:02 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings; a language review questioned the wording · 00:35:12–00:35:17 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio ▶]
[unclear audio — 0:03 ▶]
[unclear audio ▶]
Flag: words only one machine reading has (possibly not said); the recognizer flagged its own output; a language review questioned the wording · 00:35:17–00:35:23 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio ▶]
[unclear audio — 0:02 ▶]
[unclear audio — 0:04 ▶]
because I've started making a lot of donations I have like 15 or 16 different donations I make every month and I go mail them out Yeah, there's
a
lot of a lot of moving parts of what's going on.
I know
it's going to be a lot more for check 80 checks I'll go through those in no time
yeah
you know and
[unclear audio — 0:03 ▶]
Flag: a language review questioned the wording · 00:35:43–00:35:46 · unresolved: the words are not shown (unclear audio); listen to the recording
he said um Chase wants to get to be digital right They don't want to do checks anymore. So they put the pressure on you to go digital. I can't go digital
I
don't even understand digital It doesn't process in my brain.
yeah
so it's um I just don't understand I just you know I'm too old
[unclear audio — 0:02 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:36:13–00:36:15 · unresolved: the words are not shown (unclear audio); listen to the recording
right you know and it's like so they're really
[unclear audio — 0:05 ▶]
Flag: a language review questioned the wording · 00:36:22–00:36:27 · unresolved: the words are not shown (unclear audio); listen to the recording
up and see if they have
if their checks are free.
yeah you know I remember years ago at Sun Bank
years
and years ago,
Sun
Bank they the bank charged a lot for checks But they had private companies that you send down you send them one check and they'll make more for you. they were they were cheap when you first got
[unclear audio — 0:01 ▶]
Flag: the machine readings disagree here · 00:36:50–00:36:51 · unresolved: the words are not shown (unclear audio); listen to the recording
The next time you reordered, they were more so you kept
‸ and
[unclear audio — 0:02 ▶]
Flag: a language review questioned the wording · 00:36:53–00:36:55 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio — 0:01 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings · 00:36:57–00:36:58 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio ▶]
and
[unclear audio — 0:01 ▶]
Flag: numbers, amounts, negation or names differ between the machine readings; the recognizer flagged its own output; a language review questioned the wording · 00:36:58–00:37:06 · unresolved: the words are not shown (unclear audio); listen to the recording
[unclear audio ▶]
[unclear audio ▶]
money
[unclear audio — 0:04 ▶]
[unclear audio ▶]
[unclear audio — 0:01 ▶]
[unclear audio ▶]
[unclear audio ▶]
five
dollars