BOARD MEMBERS PRESENT:

Jim Freeman, Chair

Allen Tusing, Vice Chair

Cheryl Miller, Secretary

Betty Ann Price

Ana Rodgers (Entered the meeting at 8:39 am)

Robert Schofield

 

STAFF AND OTHERS PRESENT:

Lindsey Garber, Board Attorney (PRESENT VIA ZOOM)

TJ Loew, Graystone Consulting

Scott Owens, Graystone Consulting

Cassi Bailey, Assistant City Clerk

 

Chair Freeman called the meeting to order at 8:31 am and conducted a roll call.

 

1.    AGENDA APPROVAL

 

 

MOTION:                   Ms. Miller moved, Mr. Tusing seconded, and the motion carried

5-0 to approve the June 2, 2025 General Employees’ Pension Board Agenda.

 

2. PUBLIC COMMENT

No public comment.

 

3.    APPROVAL OF MINUTES

 

 

                       MOTION:                   Ms. Miller moved, Mr. Schofield seconded, and the motion

carried 5-0 to approve the February 24^th, 2025 minutes.

 

 

4.    APPROVAL OF EXPENSES

 

a.) Foster & Foster Invoice dated 04/28/2025

b.) First State Trust Invoices dated 04/02/2025-received 04/28/2025

c.) Klausner, Kaufman, Jensen, & Levinson Invoices dated 03/31/2025 & 02/28/2025

d.) City of Palmetto Invoices dated 04/23/2025

 

 

                       MOTION:                   Mr. Tusing moved, Mr. Schofield seconded, and the motion

carried 5-0 to ratify the paid expenses as presented.

 

Ms. Garber noted that there was a mistake on their bill and there will be a reimbursement on our next invoice.

 

General Employees’ Pension Board of Trustees

June 2, 2025

Page 2 of 4

 

 

5.    INVESTMENT REVIEW

Scott Owens of Graystone Consulting provided Ms. Price with an overview of the firm’s role as the investment consultant to the board.

 

TJ Loew and Scott Owens went over the quarterly investment summary, which was included in the agenda.

 

 Mr. Loew provided an overview of the current state of the economy, noting that while the year has been marked by significant volatility, overall performance is ahead of where it began. He attributed much of the recent market fluctuation to uncertainty surrounding potential upcoming tariffs. Despite this, market levels have improved since the end of the quarter. Mr. Loew also discussed broader market conditions, highlighting increased concerns about both a potential recession and rising inflation. Overall, he emphasized the heightened level of uncertainty in the current economic environment.

 

 Mr. Owens provided an update on the portfolio’s performance, reporting a -0.54% return for the quarter. He reiterated the impact of ongoing market volatility on the portfolio and discussed the performance of individual managers. He noted that each manager is hired with a specific objective in mind and emphasized that the portfolio remains well diversified. Mr. Owens recommended conducting a manager search for Lazard to explore potential alternatives.

 

Mr. Freeman noted that Lazard has underperformed its benchmark over the past 10 years but expressed no objection to initiating a search. Mr. Owens clarified that Lazard has not consistently underperformed over the 10-year period and pointed out that they have had periods of outperformance. He also explained the distinction between annual returns and annualized returns. Mr. Tusing agreed to proceed with a search.

 

As of May 12, 2025, the portfolio was up approximately 0.79%.

 

  Mr. Freeman was surprised at the strong performance of the infrastructure fund. Mr. Owens noted that Lazard is interested in investing in infrastructure such as bridges and roads, with approximately 70% of their exposure being international—largely because tolls abroad are privately operated, unlike in the U.S. where they are typically government run. Mr. Owens commented that, given current market conditions, he is cautious about being significantly underweight or overweight in any particular area.

 

Mr. Freeman also raised the topic of Sawgrass, and Mr. Loew clarified that its performance cannot be directly compared to other holdings in the portfolio, as it is not an apples-to-apples comparison.

 

Cash is currently earning approximately 4%, and there was an expectation to maintain a higher cash position. The portfolio permits up to 5% in cash. Mr. Owens stated he could raise the cash allocation to 3% and rebalance the portfolio to remain in compliance.

 

The board received approximately $150,000 in total returns from UBS as part of an ongoing redemption process, which is expected to be completed over a 5 to 7-year period.

 

 Ms. Price inquired about the frequency of contributions or deposits into the plan. It was noted that the plan is currently a net spender, with expenditures exceeding contributions. Mr. Owens stated that he would increase the cash allocation to 3% and rebalance the portfolio accordingly.

 

 

 

General Employees’ Pension Board of Trustees

June 2, 2025

Page 3 of 4

 

 

                    MOTION:                   Mr. Tusing moved, Ms. Miller seconded motion carried 6-0 to

bring cash to 3% and rebalance each asset class to rebalance the portfolio.

 

 The board previously had a Mid-Cap Growth manager, Congress, but funds were reallocated to a passive investment option. A manager search was conducted to explore potential replacements in the Mid-Cap Growth space, with the funds currently invested in the Russell Mid Cap Growth Index. The search results were included in the meeting agenda.

 

Mr. Freeman noted that most of the candidates were not compelling, with the exception of Federated MDT. He referenced the risk/return chart on page 10 of the materials. Mr. Owens also recommended Federated MDT as a strong option.

 

The board discussed the decision between remaining in the passive strategy or moving to Federated MDT. Mr. Owens and Mr. Tusing both expressed comfort with taking a modest amount of risk, given the portfolio's overall diversification and the protection it provides across other asset classes.  

 

                    MOTION:                   Mr. Tusing moved, Mr. Freeman seconded, and the motion

carried 6-0 to replace the passive investment with the Federated mid-cap growth manager.

 

The next meeting will include a manager search related to Lazard. Anchor was briefly discussed; while the fund had been underperforming, it has shown significant outperformance this quarter. Mr. Owens noted that he is monitoring Anchor closely and will continue to evaluate its performance.   

 

  

 

                    MOTION:                   Mr. Schofield moved, Ms. Miller seconded, and the motion

carried 6-0 to approve the investment consultant and manager fees as presented.

 

 

 

6.    BENEFITS DISBURSEMENT APPROVAL

             a. DROP PARTICIPANT

·         None

b. SEPARATED NON-VESTED EMPLOYEE

·         Emily Dickson (03/11/2025)

c. SEPARATED VESTED EMPLOYEE

·         None

d. RETIRED EMPLOYEES

·         Penny Johnston (03/04/2025)

e. DECEASED RETIREES

·         None

f. DECEASED ACTIVE EMPLOYEE PAYOUT

·         None

 

 

General Employees’ Pension Board of Trustees

June 2, 2025

Page 4 of 4

 

 

MOTION:                   Ms. Miller moved, Mr. Tusing seconded, and the motion carried

6-0 to approve the Benefits Disbursements as presented.

 

 

7. NEW MEMBER ACKNOWLEDGEMENT (Informational Only)

·         Nicholas Vena (05/21/2025)

 

8. SEPARATED MEMBER ACKNOWLEDGEMENT (Informational Only)

·         Marc Cooper (03/05/2025)

 

 

9.    ATTORNEY GARBER’S REPORT

 

Ms. Garber reminded the Board to file their Form 1 by July 1^st. The memo provided in the agenda includes a link.

 

10.    PLAN ADMINISTRATOR’S REPORT

 

Ms. Bailey and Ms. Miller will be attending the summer FPPTA conference.

 

 

 

Chair Freeman adjourned the meeting at 10:03 am.