appreciate pretty significantly, but it's still very concentrated in sort of AI and AI related names. So, um unfortunately, I wish we had better news on that because again, we think it's much more healthy if we see a more broad um sort of um earnings driven u market
environment. And that's kind of been the one savings grace is, you know, those those companies that are doing well, they have the earnings, so they really should see their stocks appreciate a little bit more. So um from that perspective the earning we're following the earnings and uh you'll see here in a little while we actually change from an overweight to or underweight to stocks
to more of a neutral weight and then within stocks we like large growth just a little bit more because that's really where the earnings are. Um but really again kind of similar to where we've been the last few quarters not a lot of strength or conviction in any one particular segment u because it's just
so so much is uncertain at this point. So with that, let's let's review some of the numbers. Starting behind tab two on page six. As always, I call this the scorecard or the market review. We've got all the major uh stock indexes um up
the top of the table and then the bond benchmarks down at the bottom. Uh the first one is sort of a blended domestic international, the MSCI Aqu uh for the quarter, leaving it up ever so fractionally for the year. Uh but then if we look at the the various
sectors espec the US sectors most notably the Russell 3000 um it was off a little bit that off almost 4% or 3.9. We're over on page six >> tab two skip. >> Okay >> just looking at the market indices and kind of giving you a better sense of what the the market did before we look
at our performance in more detail. Um so I was there at the second row the Russell 3000 or the US u large cap benchmark off about 4% leaving us uh down about 1.65 65 for our fiscal year or the six month ended March. And again, as I alluded to earlier, it really was
value did much better than growth. If we look down a couple of rows, you'll see the top 200 value and growth with a sizable difference where value was slightly positive again led by those energy names um primarily and then the growth names really really got hurt and sold off. Again, if we were to look at
that year-to- date number of, you know, one versus -10, as we sit here today, they're probably both up about what, maybe six or 7%. So, it's been that big of uh snapback for for growth is up about 15 16% the last 6 weeks and value
is probably up two or three again led by those energy names. So again, it's been really sort of concentrated again on on a lot of those AI and AI related names and not the kind of broad um kind of expansion that we would hope. Looking down um the rest of the the the indices
uh international as we might expect um has taken the brunt of it. um they did a little bit wor better this quarter, but as we sit here today u because they're a lot more impacted by uh the economic situation over in the Middle East, especially the oil prices um they've
done significantly worse than the US markets over the last month or so. And then bonds down at the bottom, bond investors um are are kind of a finicky, fearful bunch to begin with. Um, and they don't like uncertainty and they're they're uh they certainly don't like seeing a five handle on the 30-year
Treasury for the first time in about 15 18 years. Um, so that's caused a little bit of angst there. And as you all know, when uh if we're holding a bond right now and interest rates go up, that's not necessarily good for our bonds. Uh, from a pricing perspective, uh, nobody wants our 4% bonds if they can go get a 5%
bond. Uh so uh what we really saw was kind of a flat or and off very slightly off about five basis points, but that's probably exaggerated uh too over the last six weeks or so as markets bond markets have um continued to creep up. So real quickly, I want to switch gears
over to page 10 and just touch a little bit on asset allocation and and the small tweaks in our um strategy since we last met before we go into your performance. um really still very much in the yellow when we look at what I call the the stoplight signs. Um nothing
no real strong convictions in this particular environment. Um again we have gotten a little bit more optimistic on on stocks specifically. We like US a little bit more than international again with the thought process being that both uh Asia and Europe should be more
impacted by the energy uh situation than than us. And then two we're going to follow the earnings and right now the earnings are in in large growth. So, we've got a slight overweight versus the benchmark waitings there as well. Uh, but nothing significant as you see. Everything's still in the yellow. Um, and then on the next page is is the bond
portfolio. Um, really the only only adjustment we made to this piece of of the allocation was we were slightly more conservative. We had a about a 2 and a half% position in inflation protected securities or tips. Um, we sort of um that did pretty well in the first
quarter. Uh, and we unwind that half of that. So we're still slightly overweight that but um only by a percent percent and a quarter or so as we sit here today. So with that guys as we look into our crystal ball for the rest of the year you know kind of a lot of the same variables that we've been watching for the last uh you know several quarters
are are still in play. Most notably inflation and what is the Fed going to do with with respect to interest rates. Now we've got another concern and another variable to watch pretty closely and that's the outcome of what's going on in the Middle East. I was driving over and the market was down all morning
and then spiked up a little bit after on some reports that maybe we're getting um some some some good news out of the Middle East as far as a resolution goes. U we've heard that before candidly over the last couple weeks. So I wouldn't get too excited until we uh you know start seeing the number of ships through that
straight start to uh increase and go back to a more normal level. Um but as we look into our crystal ball, you know, again, we're probably in market consensus now that we probably won't get an interest rate um adjustment this year by the Fed. That's not necessarily a bad thing. There's a lot of other things
that they could do to to help stimulate the economy. And the new Fed chair um is is kind of more of a a tinkerer with the balance sheet that way than a guy that wants to go out and change interest rates. So, we'll monitor that pretty closely. And then obviously, you know, as the price of oil goes, a lot of
inflation will go. Um, so we'll we'll continue to monitor that as well, but right now we don't see that being a huge longerterm concern. Um, hopefully we'll get resolution sooner rather than later. Um, but the crystal ball is extremely cloudy as far as the wind on that goes. So before we talk about performance in
just a little bit more detail, questions, comments, thoughts? I'm getting a lot of that this quarter. All right, let's skip over the next tab on page 20 and just review our piece of the portfolio in a little more detail. And again recall um we have about is it
about 65 almost twothirds of the total portfolio. So I'll keep my comments really um to to the US domestic and fixed income which is the part we manage and and leave um Mitchell and BCA to talk about the rest of the portfolio. But you know for for ours it was a negative quarter but it on a relative
basis it was pretty good. Um it's the first time we've had a negative quarter in a while. So certainly good to see that the managers that I come out here and tell you are a little bit more conservative in the market that haven't quite kept up with some of these AI returns that we've seen the last couple years and that whole I'd rather get 95%
of the upsides than only get 85% of the downside. We hadn't really had a lot of evidence or a lot of quarters like that to to show any of that. So um it was good to see that um you know the managers did perform pretty well in this kind of environment. And as you can see we were off about 1.35 when our blended
benchmark was off closer to 2.1. So, not not earthshattering numbers there. Um, that's kept us really kind of right in line for the fiscal year. We're right back on top of the benchmark and then we're still playing a little bit of catchup over the last year. Trailing couple years because of the AI focused names that we owned, just didn't own
enough of uh compared to the benchmarks, that's for sure. Um, moving down, I just want to highlight a couple of funds. Um, first and foremost, recall at the last meeting, we had some concerns about the the Sterling equity income strategy. Um, that was our large cap value. That's
that first uh first fund or first strategy. Uh, we actually switched uh to the behavioral or added the behavioral large cap value. Um, you can see we didn't have it for the full quarter, uh, but we had it for most of the quarter and you can see it did significantly better. it was up for the year to date
it was up about a little more than 4% while equity income is um still uh trailing a little bit. We're going to continue to monitor that. Um but I'm telling you they are on a super short leash. That's the technical term. Um and we're having you know multitude of
conversations internally about exactly how we handle this. Um so again look for some more news on that next quarter. Um and then lastly the the Lumis large cap growth. That's the other fund that's a a fairly large holding in the portfolio. You can see it being the large cap
growth manager did a little worse. He was off about 11% versus 10. Uh again, um had had a lot of the AI related names just didn't have them all. Uh had a little bit of extra uh exposure to software which certainly hurt as some of those names have come under fire with uh
how are they going to hold up to to AI related job losses and job gains. Um and so um that that kind of led to a slight underperformance there, but longer term again, no issues or concerns. Really the rest of the portfolio, a lot of the smaller midcaps actually did extremely well during the quarter relative to
their benchmark. So no issues or concerns there, but um and then fixed income again was really right on top of the benchmark there. Uh the PIMCO fund in and our TIPS fund didn't do quite as well as we wanted to, but it snapped back really nicely in in April. And year to date, it is right right on track with
the benchmark there. And then I'm going to finish up on page 21, which is the asset allocation. As I alluded to before, we kind of came into the quarter being slightly underweight. Um, as we u made the slow slight adjustment to a about a 1 2% overweight in that first week of April, that's
probably helped us a little bit. Um, uh, minus probably some of the challenges some of the managers have had in this kind of environment. Again, I I'm fearful that we're going to get that same scenario where, you know, it's this handful of techreated names and if you don't have them and you don't have them in a big way. Um, and a lot of them have
already run up so far that they they're not cheap from a valuation perspective. Um, so, uh, again, we'll see how that goes next quarter, but um, kind of a a slight adjustment there where we're overweight even though we're showing underweight here. So, kind of in conclusion, I'm going to
wrap it up um and say kind of not not the best quarter in the world, certainly from an absolute sense. Um but given the the environment we saw, the portfolio or our piece of portfolio I think did extremely well and sort of held up um as we would expect in this kind of environment and we'll see what the the markets give us going forward.
>> Yeah, Skip. Yeah, I got a question for you or or Burgess Chambers. That cash equivalence number um close to a million dollars. Is that where we draw our pension payments from?
>> Yeah. Any expenses benefits come from uh one of those two Schwab accounts, typically the mutual fund account, I believe. >> Yeah. >> Okay. But that's in the in the $25,000. >> Yeah. Typically
>> $100,000 a quarter amount or how much how much do we usually >> I think I think it might be a little higher than that. I think it's up to about 70 a month, but I could be mistaken. I would I would have to double check the exact amount. So the last 12 months you had a little over 1.2 million
in outflows from the Yeah. >> Okay. So that's a healthy uh balance to have to protect for payments to our pensioners. >> Yeah. And if I can highlight it in my report on page eight, but if you look at that, we have the the flows and if you
go through any period, it's roughly one to 1.2 on average uh on a 12-month basis and flows out of the plan. >> Okay. >> All right. Thank you. >> Yeah. And just so you know, Skip, that CAD value of 950,000 it shows in my report, we actually manage four
different accounts for you guys. you know, one is the the large cap value, one is the large cap growth, you know, portfolio, one is a fixed income portfolio, and then we have a funds for everything else. So, the cash in all of those other accounts really is cash, but it can be thought of as, you know, that's that's money we put to work in
large value or large growth or fixed income or any of the specifically individually managed portfolios. So, it looks a little bit higher. Um, but it it again, it's it's probably closer to 2% if we were to, you know, factor that out. Yeah, that's the more frictional cash of those active managers doing
trades, rebalancing, things like that. So, >> right. >> But we never get to a point where we're don't have the money to pay the pensioners. >> Oh, no. >> No, absolutely not. >> We We are on the other side. >> Well, thank you very much. >> I can't ask for a loan out of that money.
>> You can't, but she could. >> Thank you, Blake. >> Next, we have Mitchell Brennan presenting quarterly reports for Burgess Chambers. All right, >> good to see everyone. I'm here for Larry today again. My name is Mitchell Brennan. >> You ready ate cupcakes? >> I didn't. I didn't. But next quarter, uh
I certainly can myself for Larry because we should be uh touching new all-time highs in the plan uh based on the performance so far since quarter end. So, first we'll go over this market handout. This is the cover page for it. Wanted to give you a quick update. Uh I won't hopefully cover the same exact uh
topics that Blake did, but a little bit of what happened during the first quarter and then obviously a lot has changed since March 31st. So if you start on page two, uh just a quick highlight as Blake mentioned, we started to see a rotation. It really started in November of last year where the
concentration of the market peaked at about 42% of the overall market just in the top 10 names. So that's the MAG 7 that we've covered, the Nvidia, the Alphabets, uh the Amazons, and then throw in JP Morgan, Birkshshire, Hathaway, and uh Broadcom. And then we
saw a broadening out where those names pulled back starting in November. And as we sit March 31st, they are actually down to about 38% of the overall market. And if you look on the next page, you can see the perfect example of this broadening out. Page three on the left
hand side, you'll see that blue bar. 88% of the market returns from the end of 24 through November 3rd, which was when we peaked in concentration could be attributed to the top 100 names. So, the top 20% of the S&P 500. Now, fast forward as we started to rotate away
from some of those high-f flyers, that orange bar on the far right, 76% 76% of the market returns came from the bottom 400. So, that's what we mean by broadening out, more companies contributing, not just those at the very top. And typically we view that as a
healthier market environment. Unfortunately, it didn't really last long. And so what you'll see on page four is on the left hand side that uh that nine square box right there. Uh that's a highlight of the year-to- date performance through the end of March. And it breaks out the different size
categories. So market caps, large, mid, and small. And then the different styles. So value blend, which is core, and then growth. And you'll see again a rotation where in 23 and 24 and most of 25 growth significantly outpaced value. You can see here for the first quarter
large value was up 2.1% large growth was actually down nearly 10%. In the other areas that have trailed large cap midcap and small cap they actually outperformed large cap. So again a broadening out of the market. Now you'll see that red box to the right. That's quarter to date through
the end of last week. So the first 45 days of Q2 2026 and you'll see what I've drawn that green arrow to the Russell 1000 growth which is large cap growth up nearly 17% quarter to date. And so that's outpacing large cap value which
is right below it the Russell 1000 value by about 8% quarter to date. So again we we rotated away from growth and we rotated right back into it in a pretty short time frame. Uh but across the board you can see the year-to- date numbers really every asset category is doing extremely well on a year-to- date
basis coming out of that volatility to start there. And so the biggest winner so far has been the very bottom line MCIM that's emerging markets up nearly 20%. And then across the board small cap the Russell 2000 up 13% the S&P 500
large cap core up 8.7. So again across the board everything's doing very well uh since quarter end. Uh and the big reason for that you know you see a lot of headlines if you turn on CNBC most of them are negative. So higher inflation higher oil and gasoline prices the
conflict with uh uh the US and Iran. But really one of the tailwinds that's pushing markets higher has been earnings. So earnings have been fantastic quarter to date. about 90% of companies have uh announced earnings and 84% of them have actually beat
expectations. So the growth rate on those earnings is over nearly 28% uh for the quarter which is an incredible number. Now obviously if inflation persists and higher oil and gasoline prices persist that's going to eat into some of those earnings. Uh but as of
right now we're seeing very healthy uh topline and bottom line growth across the board for for companies. The next page, page five, just highlights again, we saw most of the volatility last quarter really start towards the end of February through March and we bottomed out right at the
end of March um right before we uh put everything together for the quarter and then since then we've seen that significant rally and it's really been led again a rotation back to growth but led by the companies like Amazon, Alphabet which is Google's parent company and then Nvidia. Those are all
significantly outpacing the S&P 500 year to date. And all of that has come since the end of March. Next page, page six. Um, you know, again, I mentioned the big headlines have really been oil and gasoline prices. Um, so what's the direct impact
on the US in terms of how much oil do we rely on coming out of the Middle East? Uh, about 8% of what we imported last year came from the Middle East and and through the Gulf of the Middle East. a little bit more than we import from Mexico, but significantly less than what we import from our largest trade
partner, which is Canada. And that was about 490, so about half a million barrels a day that we rely on coming out of the Middle East. So certainly not as impacted as the rest of the globe, but if you go to page seven, you can see here we're seeing a similar trend in terms of gas prices to what we saw in
2022 and very similar circumstances. That was when the conflict with Russia and Ukraine uh really uh peaked and so we saw oil price or gasoline prices not only rise above $4 but at the height rise over $5 a gallon. We've seen some volatility. It's come down. I was uh I
met with Hannah and Pam yesterday on the city's 457 plan um and was telling them, you know, I I found a steal of a deal coming in. Went to Walmart and I got gas for $45. And I thought that was just the best deal I'd gotten in in about a week. On
my way back from the meeting going to Orlando, that same gas station, it was back up to over four 450. So within a matter of hours, gas jumped nearly half a dollar. So again, we're seeing significant volatility. It's really coming on, you know, the next headline
or true social post, whatever comes out, is really moving oil markets. We had oil at 110 just a few days ago. It's now sub $100 a barrel um over the last few headlines we've seen in the past two days. So significant volatility there. Um
>> question before you leave that page. >> Yeah, absolutely. >> So So this chart on page six is saying >> 6.2 million barrels per day in imports. >> Yeah. For the US in total, >> right? and and almost if you didn't
realize that this is just imports, you would think, "Oh my god, we're getting all our oil from other Canada, Mexico, and a little bit from the Gulf." But how much what's the percentage of that versus how much is domestic?
>> That's a great point. I don't have those factor or those numbers with me. But one of the reasons we import that oil is our refineries in the Gulf are set up for the heavier crude and not what we drill here. So a lot of what we drill we actually send to other refineries uh in
Europe and across the world. We import that heavier crude because that's what our refineries handle uh in the Gulf Coast, Louisiana and um and those bases. So it is a little bit skewed but in terms of total imports it's about 8% of what we bring in uh on a daily basis
comes from the Middle East. And then I I think to kind of touch on that if you jump to page page eight from a global standpoint so how much oil is consumed globally on a daily basis it's about 100 million
barrels a day. Um so again that's you know roughly 6% of um of what we import is the global consumption. Um and what I want to highlight on page 8 we got an announcement from the IEA International Energy Agency that they were going to
release about 400 million barrels over the next couple months to help suppress oil prices. um which sounds like a huge number uh and it's actually twice as much as they released uh at the peak of the Russia Ukraine uh uh conflict in
2022. But to put that in context again, we consume about 100 million barrels a day. So that's that 400 million barrels is 4 days worth of global consumption. And if we just look at what it covers coming out of uh the Middle East, that's
about 20% uh so about 20 days of consumption we're lacking coming out of the Middle East. So again, any amount of oil certainly helps, but wanted to add that context. That's why we with that announcement, we didn't see oil prices come back down to that more normalized
level of between 70 and 80 uh uh dollars a barrel. So, so when you say that we can't refine our own oil that we produce, >> we're not set up, the refineries that we
have here are not set up to uh handle a lot of the oil. >> Other countries that we export to are set up that way. >> Yes. >> Is that due to environmental concerns or do you know? >> I don't Yeah, I don't believe it is. I
think it's, you know, we were a little bit later to uh building out our infrastructure in terms of getting oil out of the ground. So before that, what we would get from the Middle East was a little bit heavier crude we get from countries like
Venezuela is very heavy crude. Uh and so that's what we developed our refineries to handle. Um and then here what we uh we bring out of the ground, a lot of it is natural gas and we're actually a net exporter of natural gas. for the largest. >> No, no, no. I'm talking about oil. >> Not natural gas.
>> Yeah. >> So, the oil that we take out of the ground >> that we Is that the same kind of oil that we've had in our strategic reserves? Because if it is, then >> what we have >> I don't know how people can complain
about us selling off our strategic reserves because we can't refine it anyway. >> What's in the strategic reserve has already been refined. So, that's already refined. This is what comes out of the ground what we get piped uh down to those refineries is a little bit lighter
than what those typically handle. And it just has to do with the grade of those uh those different oils. >> We export 11. We we take eight and a half million barrels a day.
But if we shut ourselves off from the rest of the world, we can't even our own oil. >> Yeah. We would just build a new one in 50 years. They're building one, >> right? That's the problem. >> One. Okay. Sorry to derail the
>> No, no, no. That's a great question. And I think that's why you've seen a a name like Nextera uh really blow up in terms of uh on the equity side because they're more focused on the new generation of energy spec specifically natural gas.
And if we can rely more on natural gas which is what we produce the most of that relieves some of the pressure of us having to import some of that oil that we're uh more apt to refine. Uh and then the next page, um with those higher, uh oil and gasoline prices,
we've seen over the past two months, March and April, inflation tick up significantly. Uh so this is the CPI report uh for April. And you can see March and April with the big jumps specifically with energy prices. And so over the past months, energy prices are
up nearly 18% from a year ago. Um we also got the this is CPI, consumer price index. PPI is producer price index and that's typically a leading indicator that was significantly higher than expected as well. That came in last week at 6% uh over the past 12 months. So
again moving in the wrong direction in terms of the Fed's ability to start cutting rates. Their mandate is price stability which is a focus on inflation and getting it down to 2%. Uh and then the labor market, labor st uh full employment. the labor market is uh is
fine. Inflation and price stability is the main metric they're looking at right now. And this is not not giving them an opportunity to cut rates and actually being priced at sometime between now and the middle next year. We may actually see a rate hike if inflation remains
persistent. Other than that, if we hop into your report, I'll just give you a quick update to cover some of the additional investments. uh that are outside of Sterling's uh purview. So if you go to uh page five, as Blake mentioned, we
were down slightly for the quarter in terms of dollars, 110,000 uh percentage- wise.3%. Uh just behind your strategic model, which was flat at 0.0%. Uh but your best performers, as I mentioned, diversification's really played a strong role in the first
quarter. So global infrastructure lazar and con and steers 8.1%. Midcap was up 3.9 and small cap was up 3.7. So that diversification which hasn't really helped as much the past couple years when it's really just been the story of large growth really helps protect to the
inside this group fiscal year to date. So the first half of your fiscal year you've earned 30 394,000 or 1.2%. And then for the past 12 months ending March 31st the plan has earned 4.5 million or 13.8 8%. Uh the best
performers for the past year, again, diversification has played a strong role in your performance. Convertibles were actually the best performer, up over 24%. Global infrastructure up 23.4%. And then international outpaced uh US
markets last year that was up 23.2%. Uh long-term numbers, the past three and five years, for the past three years, you've had annualized returns of 10.7% and then the past 5 years 5 a.5%. the reason so much lower, the 2022 selloff
is still baked in that 5-year number. So, that'll be rolling off pretty soon, and you'll see those numbers look much better. Uh the last bullet you'll see on page five, if you remember, we're unwinding USU. Uh that fund closed, so we're slowly getting redemptions back. We received about 190,000 uh during the
first quarter, and that money is slotted to go into the new Cohen and Steers Tactical Real Estate Fund. So, one of the things we'll discuss today is finalizing those documents. uh and then funding that at the end of this quarter. So, uh Skip, I think you were gone last meeting. So, uh we're going to
consolidate the REITs, the publicly traded real estate, which we have the Schwab uh US real estate uh US REIT fund, and then that USQ is private real estate. We're going to consolidate both of those into Cohen and Steer's tactical real estate fund, which is a hybrid. It
has 65% in private real estate and 35% in uh publicly traded real estate rates. Surges Chambers. >> Yes. Correct. Yes. Correct. And then just quickly, if you hop over to page uh page eight, this highlights
again all the numbers I just went over uh but in an easy format to read them. And uh to your question earlier, the flows in the plan that contributions, those are net contributions for the plan. So last quarter a little bit higher than we typically see 560,000.
But if you look at the one-year, threeyear, four year, and fiveyear on average just over about one million uh for 12 month period in terms of outflows from the plan. Next page, page nine, your uh current allocation versus your targets and
across the board really in line your you finished the quarter somewhat underweight large cap. Uh we had about 22% in large cap compared to your target of 25%. that is certainly you may be overweight there now with some rebalancing from sterling and just a
function of the markets doing so well uh since quarter end. Uh so you're likely in line there overweight midcap which has been a good place to be slightly underweight small cap but other than that your alternatives are pretty much in line with their targets. Uh and then we will get private real estate funded
uh the or real estate funded with the Conan Steers once that's opened and we'll reduce some of your cash position uh when we fund that and get you right close to that 5% uh target that we have. And then lastly, just wanted to touch on
page 14 and give you a quick highlight. This is the breakout of all the individual funds whether they're managed by Sterling or uh recommended by BCA. And just give you a quick highlight. You can see the quarter to date column. But as we sit today, all of your funds with
the exception of maybe Sterling fixed income, which is likely flat, maybe slightly down, everything is positive year to date uh through yesterday. In the big winner so far, Sterling's uh behavioral large cap value, which we just added last quarter, is up 11.4%
year-to date. The Vanguard S&P 500 is now up 9% where it was down 4.4 4 at the end of the quarter. Uh small cap is doing extremely well. Small cap growth, you're up over 14%. Uh cap value, you're up over 12%. Midcap, you're up 9, 13,
and 10.5% uh with those three midcap funds that you have. Uh convertibles are up nearly 18% to date. Global infrastructure, you're up 12 and 9%. And then uh international the UPUPAC and Fidelity international funds you're up
seven and 8% there. Uh the Schwab REIT fund is up nearly 14% year-to- date. And then USQ up about 1% year to date. Uh your fixed income overall is uh probably flat. Again, I don't sterling's fixed income numbers, but it's somewhere
between zero and down half a percent. And then the PIMCO real return fund with inflation coming back up is positive probably about half a percent. So really good news since quarter end. Uh hopefully we can keep that momentum uh through June so that when we come back next quarter uh you'll see these strong
numbers on paper and I won't have to report we lost money in the month of June. So uh with that uh no recommendations on our end uh other than just finalizing uh the documents for Conan Steers Tactical Real Estate Fund. Uh Hannah and I have gone through those.
So, it's up to your legal counsel to review them and approve them and then can submit that and hopefully get that funded at the uh their capital call at the end of this quarter. Uh so, with that, I'll conclude my report and just open it up. Any any questions? >> Thanks, boss.
>> All right. Thank you, Mitchell. Um, next we have Inz Garcia from Salem Trust giving us an update on the transition. >> Good afternoon. As she mentioned, my name is Inz Garcia. We are proud to be your new custodian and we're happy to
report that the transition went through um, you know, seamless as a transition can be, right? We work closely with uh, all of your service providers to get especially with the sterling the getting the accounts open, getting all the funds transferred. um it went through, everything went well and we're just thankful again for you guys entrusting
us with your pension plan. We work closely with the other city plans with police and fire and your nearby city. So kind of this is my region that I cover for count. So I've been with Salem for over four years, but Salem has been around for over 25 years. And you know, we kind of appreciate that we're much
smaller compared to some of your truest banks and those bigger guys because we have a lot more closer working relationship with your city folks um city folks here to the right and and your managers as well. So we're thankful to to be entrusted with that and just to mention what you had mentioned sir about
uh money and retirement payment. So once a month as our due diligence we also do what we call a monthly rebalance. So we will sit down and look at all the assets, you know, look at the retirees. If anybody has submitted maybe a large withdrawal or something in their pension plan, we will compare that against what
we have in cash, what we're going to pay out for the retirees. We kind of do a little review. If for any reason we find that we may be short or tight in that number, we will always reach out to Burgess to the group and give us a recommendation if for any reason we needed to move some money or make some trading recommendations what they would
recommend. So we we do every month we will do that with the team just make sure we're we have enough money but we definitely have a buffer but some plans tend to be a little bit lighter so we we do it just as a precautionary measure to make sure we might have a big you know payment coming out as well. So, and just
a little bit about Salem. I don't know if you guys attend the FPPPTA conference in June that's coming up, but if you guys do, we will be there. We have a booth. We'd love to meet you if you guys do or don't, but um we are there every year. And we you get to meet some of the staff that will work on your day-to-day activity as well. As you know, the staff
in-house, they will process all of the incoming pay invoices, any transfers that are outside of what Sterling does or any recommendations from Burgess, their team, we will process for them as well as any tye lumpsums, any rollovers, anything out of the norm, our team will do that. So, if you're ever in Florida
in Tampa, Florida, right, we're right across from the airport. Please give us a call. We'd love to show you around the office and meet some of the folks. We have one of the executives that sits in Tampa, so we'd love to see you. Um, does anybody have any questions? I mean, anything that you might want to know other than I present it? No.
>> No. >> Okay. Well, I'm good. I'll keep it short and sweet. I know you guys have a couple more things on the agenda, but thank you so much. And I plan on attending maybe once a year unless you need me. Otherwise, just call and I'll be glad to come in. >> Awesome. Thank you. >> Thank you. >> Okay. Our last item under new business is for the board to discuss legal
representation changes. In your packet, there's a letter that was received from the firm Sugarman Sky Brazwell. It's um justifying us of the resignation of our current pension attorney, Pedro Herrera. In that letter, it outlines a couple of options for us moving forward. Option
one is to move firms to the firm that Pedro is moving to retain as an attorney. Um option two is for us to remain with the firm um Sugarman Suskin and um with that they would be giving a 25% reduction in fees and option three
is for to just choose different firm in its entirety um just open to just recommendations lawyer it not >> and I know you're not asking Um,
>> I believe that Sugarman is going to replace the person we had with a qualified person that has all the legal credentials. >> Correct. >> And to receive a 25% reduction. I don't
know if that's going to creep up eventually. I imagine it would, but I think instead of chasing the guy that chased the buck to a new firm, we should stick with the
firm that we had. We already have accounts and relationships and all that with them. And we get a 25% reduction. And you can tell us after you solidify it if that's going to be like stage like next year it's 20%, next year it's 15,
next year it's 10, five, back to zero in five years over here. But I' I'd make a motion that we stay with Sugarland. >> Do I have a second? >> Second. No, sorry. >> Okay. All those in favor?
>> I What about public comment from the guy with the broken arm? vote on that. >> Okay. >> And does the board give me authorization to execute any of those documents if applicable? Any of >> Yeah, I don't think we have to vote on that. >> I think the vote to do it is
>> gives you that authorization. >> I do believe the attorney that they are going to appoint is um David Robson who's served the board in the past. Uh it looks like for the firm Sugarman Suskind, we've had them since 2000. So, I do believe they're going to give us someone who's worked with the plan and
they're familiar with the city charter and pension code. >> Looking for qualified, certified, empowered personnel. >> Absolutely. Have a signed LOD letter, the Cohen and Sears tactical real estate fund document that Mitchell mentioned
earlier. Um, I just need to get that reviewed by the pension attorney or by the firm and then we'll be ready to execute those documents. That's what was discussed in our last meeting. And then Sterling Capital Management, they provided form ADV part 2A, which is an
annual requirement for them to disclose to the board. It's included in your packet as well. Um, otherwise our next quarterly meetings August 20th at 3 PM. And if the board members have no Oh,
>> did did we have to make a a voting decision on converting from those two RETs to the other one? >> No. So, you approved that at the last meeting. Okay. >> Uh, this is just getting the documents and agreements in place and >> so the board doesn't need to do anything further. Okay.
>> No, not at all. Goodbye. Um, do we have any other questions from the board? Okay.