and we'll I'll just keep trying, I guess. February 3rd meeting of the Cocoa Beach Police and Fire Pension Boards and we'll start with roll call. Dan >> here. >> William
>> present. >> Joe Greg >> present. >> Tommy here. >> In the fire side we have AJ >> here. >> Finley >> here. >> Here
>> all present. >> Next item is the uh public comment. Do we have any public comment? Okay. None. Um, we need a motion to approve the minutes of the last meeting. I get a motion.
>> Second. >> I'm sorry. Who did what? Okay. >> Stanley. >> Who second it? >> Dan. >> Okay. >> All in favor? I >> opposed. Fire. >> Motion to accept the minutes.
>> Second. >> Second. Second. All in favor? >> Next we have uh the expenses to approve for the last uh period. Um
does anybody have any questions about the expenses? >> Do we have a motion to approve those? >> So move. >> Dan >> second. >> Second. All in favor? >> I oppos. Motion carries.
>> The fire side. Um motion to accept expenses. >> Motion to accept. >> Second. >> All in favor? >> Carrie, we are ready for you. >> Thank you very much. Good afternoon. Good to see you all. Hope everybody's holidays were wonderful. Um can't
believe we're already in February. Um, looking back to where we finished December, I'll open in your performance books to what is page number three where our typical market charts start. And as this is the first quarter of our new fiscal year, um, we were off to a
pretty good start. If we look on our typical charts on the top right there, you can see the S&P was up um, just shy of about 3% for the quarter. Um, all all sectors really of US equity were positive. you can see midcaps only marginally so, but all other segments
including small cap up 2% or north of that. Um, and I think, you know, a few different things going on. Obviously, there's there's um a lot going on geopolitically, but I think probably a lot would agree the US economyy's held up probably better than a lot of people expected. And I think, you know, GDP
continues to suppress to the upside. >> Some of that is just the sheer amount of capital expenditures going on around AI. Some of that is that consumers continue to spend, especially those wealthier top 10% of households. Um, and that has lifted, you know, GDP, I think probably
higher than than most expected for 2025. Inflation continues to be at kind of a reasonable level, you know, kind of mid twos% 2.6 2.7 depending upon whether you look at um CPI or core. It's higher than where the Fed wants to be at two, but by
historical standards, 3% is about right for inflation. So, you know, definitely a more reasonable level of inflation. Um, and I think, you know, you kind of see that coming through in markets and in those positive numbers. What was interesting was as we rounded out the end of the quarter, you did see a
rotation away from some of those very growthy names we've talked a lot about. Um, over concerns that AI spending might be a little bit early. it's kind of early to know who the winners and losers may be there. So, some of those magnificent seven names actually rotated out and value kind of led the way to the
end to end the quarter. Um, but for the full year, it was still very much a growth story within US equity and particularly within large cap overseas markets. You can see in the middle there kind of in the yellowish orange. Um, pick an index the all
country which is on top over 5% for the quarter. um EPHA developed markets and emerging markets all o you know up right around that 5% level um and I think a few different things going on there the US dollar overall weakened in 2025 that's a nice tailwind for international
equity that segment had also been pretty underloved and so was kind of ripe for a little bit of a comeback there um and you also saw within emerging markets particularly some reshoring themes so countries like Mexico Taiwan you know viewed as beneficiaries of countries
redoing their supply chains and kind of put that all together and international was was a great place to be for the quarter. And then even within fixed income in the bottom segment there, that darkest bar is the full 1 to 30year bond aggregate. Um, and that was up a little over 1%.
And what we saw from an interest rate standpoint for the quarter was long rates did not change very much. I think the 10-year maybe changed two basis points. You know, it's very static. The short end of the curve did respond to the cuts we got from the Fed. We got
three 25 basis point cuts from the Federal Reserve in the overnight rate. Um but again overall in the longer end of the curve, not a lot of changes there. So essentially the 1% we got was was coupon coming off the A. And then if we look down to the bottom chart that's
sort of 2025, the calendar shot of 2025. Um and the numbers are just I mean stellar. So almost 18% for the S&P. every overseas, you know, international equity indicy did over 30%. 30%. Um, and even bonds gave us 7% for the
calendar 2025. So, I think with everything going on in the background, it's it's markets have been incredibly resilient. Um, you'd kind of never know from looking at these numbers what we've been through in 2025. Um, so I think, you know, good start for our new um fiscal year for sure from an economic
standpoint. And then I'll say we continue to see little green shoots from real estate. Um that index again gave us about 1%. I think that's four or five quarters in a row. Most of that continues just to be income. I think ASB said there was maybe 11 basis points of
appreciation but at least it seems like maybe on the whole valuations are settling down a little bit and it continues to throw that income which is a good thing. Um, on the real estate side, as you all know, we did commit to Mavic, which is that kind of more value added real estate manager.
>> Hey, are you there? >> Yes. Yes, ma'am. Thank you so much. >> Okay. All right. We're in uh Carrie's giving her presentation at the moment. >> Yes. Yes. >> Um, we have committed to Mavic and as you know, that paperwork is in. We have
not had a call yet. Um, but I do anticipate over the next couple of months or so, we'll start to kind of be putting that money to work as well within real estate. Uh, but across the board and for starting our new fiscal year, you know, good positive quarter. The numbers are a little smaller than we're used to. We've had some really big
swing quarters here recently. Um, but nonetheless, a good, you know, marginally positive quarter to start our new fiscal year, which I think is a good thing. Um, again, especially with everything going on in the background geopolitically, it's it's kind of amazing how resilient markets have been. Can't can't kind of say that enough. Um,
moving on from the economics, unless there's any questions there, I'm going to move in your respective books to what is page number 13 for each of your fund. It's that 10-year line graph of growth for each of the funds. Um, and so
starting with FIRE on page 13, you can see you ended the quarter with about $22.16 million. And in the very bottom line there, we kind of give you an an accounting of of the flows for the last 10 years. Only 10 years ago, we were at
about 11.6 million. Again, now we're at about 22.2, almost double. Um, we've paid out about 2.5 million in expenses and more importantly, benefits. Our dollar gain over 10 years is over $13 million, and that equates to a return of
just over 8.5% over that 10-year period. Flipping over to the police side. Um, just behind that, you all were at about 21 I'm going to round up to 21.4 million on a on an end of quarter basis. Very similarly, started at about 11.7
million. You've paid out about 3.2 million in benefits and expenses, just shy of 13 million for your gain over the 10 years in dollars. Um, getting you again to that roughly 21.4 million, an 8 and a half return on a 10-year basis. um very good numbers over the 10-year, you
know, very happy to see that for your fund and and ultimately for your beneficiaries who certainly deserve, you know, those benefits in a healthy fund as well. Um moving from there in your books, I'll just go to the next page, which is our kind of pie charts of where the assets
are for each fund. Kind of a just a highle view there. Um and for FIRE, I'll start with you all again. As we mentioned, just over 22 million, about 22.2 2 million in your fund. Um, as far as where the assets were at the end of
the quarter, about 51% of your assets on the fire side were in domestic equity. Um, just shy of 18% of your fund was in international equity. You were at about 16 1.5% of the fund in domestic fixed income. You had just over 4% in global
fixed income. I'm going to round up to just about 9% in real estate and then less than 2% in cash. um on the police side and similar as expect as as expected about 52% in domestic equity um for police about 16
and a half in international equity um same amount 16 and a half in domestic fixed income just over 4% in global fixed just over 9% in real in excuse me in real estate um and again just about 2% in cash forear fund as well
um just a couple of pages from there what is page number. I'm just going to skip ahead a little bit. My book is moving slow. We're going to go from there to what is page numbered at the bottom of your book. It's going to be 19.
And that's our relative asset allocation view for each of your funds. Um, and in summary, both of the plans are compliant with your investment policy. Um, you'll see in both cases, we're a little overweight um in domestic and international equity. um not a surprise
because so much of the returns has come from those two segments. Um very much in compliance, you know, even from a domestic fixed income and global is a little underweight but really not much. Um and as you all know, as we've kind of let ASB draw down, that's the most
underweight sector is real estate. Even though we're still compliant with our policy um and as I mentioned, as we begin to get those capital calls for Mavic as well, that will remedy itself. I do expect that to start any time. So very comfortable with both where both of the funds are from an asset allocation
standpoint on that page. Um moving from there, just kind of putting some numbers to your quarter on page number 22 in each of your books. Um for the quarter for fire, we were up
just about 1.8%. Um we did trail the benchmark slightly. That was up a little over two. Um and that was on some weakness both in large growth and in large value. And I'll talk a little bit more as we get kind of get into the managers themselves. On the police side obviously very similarly
also up about 1.8 uh over the benchmark up about 2.3%. Um very similar reasons kind of behind the performance there. Um looking at at equity both US and overseas together we were up about two. The index was up slightly more than that about three. Um, within your domestic
equity segments, you can see we were up slightly north than a half of a percent. The index itself was up about 2.4. As I mentioned, if you look through kind of to the themes, growth did come out of favor for the quarter, most notably in midcap growth. You can see Touchstone
was actually slightly negative. Um, their selection actually held up a little bit better though. So, they were down three, the index was down closer to four. on the large and mega cap growth side. Winslow um kind of in that rotation that we talked about. Um in
particular, Spotify is a name that they like a lot. There's a CEO transition coming online. That was a little bit of a drag. Um and Door Dash as well making some significant investments in the business thinking they'll repay down the road. Um those names were um a little bit of a detractor there again as we saw
also some of the mag sevens pull back. Um, on the value side, we had some good performance from Vanguard Equity Income, pretty much in line with the index there, up just north of three and a half%. Um, Brandy Wine, your other value manager though, did trail. Couple of
things going on there. Um, they like lower return on equity, kind of cheaper companies. Um, they also have a tilt towards quality and some of the kind of, you know, lower quality companies have done well in that segment and we've kind of seen that for a little while now. Um, so for Brandy Wine, who's really
screening for those cheaper um, stocks that are also quality stocks, that's been a little bit of a headwind for them and kind of something that we're watching very closely there. Um, and then of course you all all have the extended market as well, which was just marginally positive, that index for the quarter two.
Um, moving to international value was very much the story in international equities as well. On the next page you'll see together that segment was up north of 6 and a.5% ahead of the index which was up more like five and the performance here really came from DFA on
the value side up almost 8 and a.5%. European financials in particular for the calendar year 201 were up over 100%. Um so valueoriented kind of um industrials particularly financials really doing very nicely where on the
growth side you can see some of those growthier names kind of out of favor from a Europacific standpoint. Um some of the kind of AI aircraft theme names that are a little bit higher valuation did pull back a little bit. Um but again kind of putting those together a very nice combination and did lift you over
the index there. Within fixed income overall we were up about a percent and a half. Domestically we were up about 1.3%. Dodge and Cox you know is uses um credit securities very heavily in their portfolio and that has continued to work very well for them
putting them slightly ahead of the index there. Um on the global side um PIMCO you know giving you some good performance of about 2% for the quarter and then as I mentioned for real estate we're getting about 1% gross here that was about 80 basis points from ASB you
know all pretty much coming from income as the values are kind of largely flat there. Um so I think kind of in summary you know large cap growth that space kind of continues to be a challenge. It'll be interesting to see if it still kind of shakes out a little bit. I think that will be good for markets. um if you
do see a little bit more burning there and kind of a return to quality um but that growth segment has been you know a significant challenge and something that we're watching very closely um and I would say the same for Brandy Wine you know kind of keeping an eye on that strategy as well and the environment too you know noting that both of those
strategies have struggled um we'll continue to kind of keep an eye on those over time but I think almost 2% you know pretty good place to to start the fiscal year it's not a not a big number but if we do that four times you know we'll hit your assumption which is a good thing So, um, you know, not not disappointed with where we're starting our fiscal
year up about 1.8% net of fees. Um, and happy to answer any questions that you all might have. >> Do we have any investments in uh, critical minerals or precious metals? >> So, not directly. You may have managers
that buy some of those companies and I can tell you I do see some of those plays. I just want to pull up um some of DFA in addition to the financials that I talked to you about, they do hold kind of some mining um names. I see Bareric Mining Corp. Some some managers will hold those as they like the names and
the opportunities. Um but they're the ones that would pick those on your behalf if that makes sense. We obviously don't have any dedicated investments to that, but your managers may um may choose to do that. Sometimes we'll see, you know, some of that and and right now for DFA International, they do have some exposure to what looks like, you know,
mining and elements. Um, I only see kind of one name in their largest top 10, but there's certainly some. >> Thank you. >> And they and there may be others, too. I just happen to see that one off offand. >> Last couple meetings, we did the
hypothetical window comparison. How >> Yeah. So, the last time we met, um, we were actually slightly worse off. And so, I thought, you know, for May, I'll refresh that for you all. Again, when we first looked at it mid last year, it was slightly better with 2% Bitcoin. Last time at the end of December, it was, you
know, slightly down. So, my thought was, you know, every other meeting, we'll continue to look at that. As you know, very, very volatile. Um, so, >> do you have any up-to-date numbers? >> I do. I actually had to email them to Debbie because I've been at a conference. Um, but both funds are up
since the end of January. And I'll just kind of give you those numbers, too, until you're able to to see your emails. Um, but through the end of January, I'll kind of give you updated numbers here. This is FIRE. So, fire, as of the very last business
day of January, you were up 22,685,000. And police, you all were at 21,860,000. So, you remained in a great place through the end of January, too. >> Thank you. >> Absolutely. >> And I can't get into my emails, right?
>> Okay. We'll figure out a way to get them to you. Right now, they're electronic, but we'll figure out a way to get those out. >> I hadn't hadn't been to the office because I'd been in a conference. So, la >> last meeting you mentioned you were looking into ASB's performance. >> Yes. Yes.
>> Have anything to say on that? >> We continue to watch it. We are in full liquidation, meaning we've asked them for our money back there. Um, their latest update, I think, is cautiously optimistic. They basically said, um, they're seeing some good kind of absorption, particularly in industrial.
Um, they did a hund00 million of property sales in the third quarter. So, they continue to try to reposition themselves and also raise cash. Uh, one thing that I liked a lot is their office allocation is now down to 10% of the portfolio. The index is 18. So as you all know that was a big part of their
struggle. I think being about half the index weight is all else equal is going to help them. So I think there's green shoots not only for real estate but for ASB2. It's just going to be a very slow process because of how that you know there's a lot of inertia in that particular space. Um but I do feel
better for sure with what I'm seeing and hearing from ASB. >> Yeah. >> Any more questions? Do we have Pedro around? >> Pedro, are you still there? Uh currently just
a resentation Pedro. Can you slow down just a little bit? trying to um volume you down a little bit cuz it's too loud. >> It is doing it is doing it. Okay. >> Thank God cuz this is really confusing.
>> Okay. >> All right. Give that a try. >> You want me to wait a little bit or >> a little more? >> Little more. Is that it? >> Yes. >> Yes. Yes. >> Okay. Okay.
So, I was just going to give you guys an update legislative. Uh you may be aware has already begun. This year has been working. Um there's a review of me hostile issues that are being discussed
potential redistricting property taxes. >> Hey Pedro, are you in a car? >> I'm I'm on the right train. >> Ah, because you speak you're the you're breaking up.
>> Yeah, I'm sorry. I'm heading back from the FBTA. I was speaking uh this morning actually. >> Okay. >> Um so we're trying to trying to get the best I can. >> All right. Basically, is there anything important
that we need to know cuz otherwise we'd wait till May. >> Uh okay. So nothing we need to know. Um the only thing I just want to maybe address is I hope you guys are so um you know safe
my clients have kind of some protocols in place where they will um meet on a basis. uh it allows for uh a trustee chairperson or or trustee everybody uh to essentially accept uh or or
potentially knowledge assignments of contract uh take action in between uh but obviously are subject to the approval of ratifying that decision at a later uh you know we've had examples of where investment manager for example get
purchased or acquired but um the custo recently uh never going out of business. So, you know, we have to make some decision uh a consulting firm, an attorney, right? if something like these changes on it. Um rather than having
occur which two agree on uh the could authorize the the chairperson or someone else uh to to make these decisions uh and then obviously subject to ratification uh by the board at its next
meeting. But it really serves as kind of a a face um to just any issue without calling a special. >> He needs to send that to us as an email. >> Pedro, you were breaking up again. Anywhere you can send it to me in an
email so I can send it to the board members of what you're talking about. >> Yes. Yes. I can send it in an email. It was it was really just I'll try really quickly here just if the board is comfortable to uh accept a motion to
authorize the share person for example uh to make decisions in between subject to a full ratification by the firm. So in the case of an investment manager being purchased or uh an actual attorney or someone leaving the firm or leaving
uh the you know required by another firm um the contract can be assigned and ratification by the board next we don't want to do that yes we do no harm no problem it's really just for me
to address the process is to help the board you know just continue this administration Okay. Yeah, we we understand that. But go ahead and send it in an email anyways. Is that where we have it? >> So, we'll address >> We'll address it at the next meeting.
>> I can address it. I can address the next meeting. >> Yes, ma'am. Um, I'll go ahead. I don't have anything else to refer um from from my standpoint. >> Okay.
>> All right. So then that that's it. So then the next meeting would be May 5th at 3:00. >> Next meeting, same time. >> Same time. >> May 5. >> And to let the board, all the board Dan is leaving. This is his last meeting.
>> So we'll have to get another member on board. >> So we'll get with the commission for that. >> I retired and I'm going to return. Remember remember for our departing for our departing members they have to file the form one the one final
>> okay all right >> that for me >> no you you go back online where you did your form one >> exactly that's all done >> okay >> all right
>> okay we need a motion to adjourn >> all in favor I think that's a record for you guys. >> Yeah, I think it is. Yes.