BOARD MEMBERS PRESENT:

Jim Freeman, Chair

Allen Tusing, Vice Chair (Not Present)

Cheryl Miller, Secretary

Betty Ann Price

Ana Rodgers

Robert Schofield

 

STAFF AND OTHERS PRESENT:

Lindsey Garber, Board Attorney

Doug Lozen, Foster & Foster

Scott Owens, Graystone Consulting

Cassi Bailey, Assistant City Clerk/Pension Plan Administrator

 

  Chair Freeman called the meeting to order at 8:32 am and conducted roll call.

 

1.    AGENDA APPROVAL

 

 

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

5-0 to approve the August 25, 2025 General Employees’ Pension Board Agenda.

 

2. PUBLIC COMMENT

No public comment.

 

3.    APPROVAL OF MINUTES

 

 

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

5-0 to approve the June 2, 2025 minutes.

 

 

4.    APPROVAL OF EXPENSES

 

a.) Klausner, Kaufman, Jensen & Levinson Invoices dated 06/30/2025 & 05/31/2025

b.) First State Trust Invoices dated 07/09/2025, received 07/24/2025

c.) Foster & Foster Invoice dated 08/05/2025

 

 

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

5-0 to ratify the paid expenses as presented.

 

 

 

 

General Employees’ Pension Board of Trustees

August 25, 2025

Page 2 of 4

 

5.    INVESTMENT REVIEW

 

Scott Owens of Graystone Consulting presented the end-of-quarter investment review. He noted that the market’s performance this quarter represented a strong rebound from the previous quarter’s significant decline. He attributed market trends largely to what he called the “4 T’s” — Tariffs, Taxes, Trump, and Tweets. While the president has advocated for lower interest rates, the Federal Reserve has maintained current rates. Market optimism was fueled by recent remarks from Chairman Jerome Powell suggesting potential rate cuts. Manufacturing indexes have improved, and while unemployment remains low, there is concern that it may rise.

 

Mr. Owens observed that the first half of the year was influenced more by market trajectory, whereas the second half is increasingly data-driven. Companies are absorbing about 60% of tariff-related costs, which may push up consumer prices and lead to cost-cutting measures such as layoffs. Overall, he expects higher market volatility in the second half of the year and anticipates a potential Fed rate cut in September.

 

Reviewing the portfolio, Mr. Owens reported a 6.69% increase for the quarter and a 10.88% gain year-to-date, noting that the fund remains on target. He mentioned confirming whether additional proceeds were received from the USB redemption with the custodian. Individual manager performance was then reviewed. Sawgrass, the fund’s most defensive manager, performed modestly in a strong market, while Geneva returned 3.59% compared to the 9.73% Russell 500 benchmark. Lazard has struggled over the past decade despite recent improvement, prompting a manager search. Clearbridge is performing near benchmark, with no immediate changes recommended. Real estate holdings have stabilized and slightly outperformed the benchmark, though the Board is still considering a transition out of the current manager.

 

As of August 15, the total fund performance stood at 5.93%. Mr. Freeman clarified that funds from Federated MDT came from passive holdings during a rebalancing opportunity.

 

The Board discussed the portfolio’s defensive positioning and potential for increased risk exposure. Mr. Owens noted that while Sawgrass is highly defensive, adding exposure to large-cap growth could enhance returns. Mr. Freeman suggested waiting for a full board discussion, although he personally was open to modestly increasing risk.

 

The consensus was to revisit the topic next quarter after reviewing a full year of performance data.

 

Mr. Owens then presented the international value manager search. He summarized performance data, noting that firm size does not appear to correlate with returns. Among the candidates, Todd Investment Advisors demonstrated consistent performance, while Lazard showed more dispersion. All potential managers have historically outperformed Lazard.

 

Mr. Freeman questioned selecting managers with lower returns and higher risk, and Mr. Owens explained that active managers generally outperform over ten years, though not necessarily over five.

 

When asked for his recommendation, Mr. Owens favored Todd, noting its consistency. Ms. Price requested further explanation of the recommendation for Todd over a passive approach.

 

  

                    MOTION:                   Ms. Miller moved , Ms. Price seconded and the motion carried 5-0

to move 100% of investments from Lazard to Todd.  

  

 

General Employees’ Pension Board of Trustees

August 25, 2025

Page 3 of 4

 

 

 

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

carried 5-0 to approve the investment consultant and manager fees as presented.

 

6.    ACTUARIAL MORTALITY ASSUMPTION STUDY

 

Doug Lozen of Foster & Foster presented the findings of the latest actuarial study. The study indicates that all general employees are expected to have longer life expectancies. As required, the Board must adopt the assumptions determined by the FRS actuary. Mr. Lozen explained the methodology behind these studies and the range of assumptions used by the FRS.

 

The Board had previously approved a 13.60% rate for the actuary study; the new study increases this rate to 14.30%. This updated rate will need to be adopted with the next budget and will be incorporated into the valuation for the fiscal year beginning October 1, 2026.

 

Ms. Price inquired about the employee contribution rate of 5%, and Ms. Garber clarified that any changes to that rate would be a decision made by the City.

 

 

7.    BENEFITS DISBURSEMENT APPROVAL

             a. DROP PARTICIPANT

·         N/A

b. SEPARATED NON-VESTED EMPLOYEE

·         N/A

c. SEPARATED VESTED EMPLOYEE

·         N/A

d. RETIRED EMPLOYEES

·         N/A

e. DECEASED RETIREES

·         Eunice Cook (06/24/2025-No Annuitant)

f. DECEASED ACTIVE EMPLOYEE PAYOUT

·         N/A

 

8.    NEW MEMBER ACKNOWLEDGEMENT (Informational Only)

·         Aurana Jones (05/28/2025)

·         Andrea Vargas (06/18/2025)

·         Jessica Riccio (06/18/2025)

·         Vindell Barber (06/18/2025)

·         Brad Dodson (07/16/2025)

·         Kyle Metz (08/13/2025)

 

9.    SEPARATED MEMBER ACKNOWLEDGEMENT (Informational Only)

·         Nicholas Vena (07/31/2025)

·         Emma Butera (08/15/2025)

 

 

 

General Employees’ Pension Board of Trustees

August 25, 2025

Page 4 of 4

 

10.    ATTORNEY GARBER’S REPORT

Attorney Garber reviewed the memoranda included in the agenda packet, addressing the following items:

·         2026 Proposed Meeting Dates: The Board reached a consensus to approve the proposed meeting schedule for 2026.

·         Entities that Boycott Israel Memorandum: Attorney Garber noted that, effective July 1, 2025, an addendum will be required for all contracts to comply with new statutory provisions. Corresponding updates will also be made to the Investment Policy Statement (IPS).

·         Stanley v. City of Sanford Memorandum: Attorney Garber provided a brief overview of this memorandum, which was included in the packet for the Board’s information and review.

 

  Mr. Freeman questioned an employee who was only an employee for one day.

 

11.    PLAN ADMINISTRATOR’S REPORT

 

We are still one Board member down. Please let Ms. Bailey know if there are any recommendations.

 

 

 

Chair Freeman adjourned the meeting at 10:15 am.