01-26-2023 Minutes1Y OF
MUNICIPAL L EMPLOYEES' RETIREMENT TRUST FUND
BOARD F TRUSTEES QUARTERLY MEETING
City all, Commission ham ers
1 N. Bluford Avenue, Ocoee, FL 3476
Thursday, January 26, 2023 —1 O:OOAM
TRUSTEES PRESENT: Gequita Cowan, Chair
Patricia Gleason, Secretary
Gary Gleason
Tammy Brown
TRUSTEES ABSENT: Robert Briggs, Vice Chair
OTHERS PRESENT: Pedro Herrera, Sugarman & Susskind (via Zoom)
Chrissy Stoker, Foster & Foster
Stef Bravo; Foster & Foster
Brad Hess, AndCo Consulting
1. Call to Order Gequita "Gee" ,Cowan called the meeting to order at 10:04AM and a
quorum was determined.
2. Roll Call --- As reflected above:
3. Public Comments— None.
4. New Business
a. Update on Trustee terms
i. Chrissy Stoker reminded the board Robert Briggs was re -selected to
serve as the 5tn Trustee at the last meeting. Chrissy noted the
Commission ratified this appointment at the November 15 2022, meeting.
b. Cyber security company
i. Chrissy Stoker commented it was discussed at the November meeting that
a cybersecurity firm would present to the board today. Chrissy commented
they could return to this item later once Pedro Herrera joined the meeting.
5. Approval of Minutes
a. November 2, 2022, quarterly meeting
The November 2, 2022, quarterly meeting minutes were approved as presented, upon
motion by Gary Gleason and second by Patricia Gleason; motion carried -0.
6. Consent<Agenda
The board approved the consent agenda as presented, upon motion by Patricia Gleason
and second by 3arvGleason; motion carried -0.
7. Old Business — None.
8. Reports ( ttorney/Consultants)
a. AndCo Consulting, Brad Hess, Investment Consultant
i. Quarterly Report as of December 31, 2022
1. Brad Hess briefly reviewed a letter from Mike Welker and gave a
brief firm update. Brad thanked the board for their business.
2. Brad Hess gave an overview of the market environment over the
quarter ended December 31, 2022, versus the 1-year performance,
commenting he had good news to report today:
3. Brad Ness reviewed the negative bond returns in the last fiscal year.
Brad commented bond returns were positive as of the fourth quarter
of 2022. Brad discussed inflation and the probability of going into a
recession in 2023 or 2024.
Brad Hess reminded the board the pension fund was for the long-
term, and he was comfortable with their long-term strategy.
5. Brad Hess discussed the impacts of diesel fuel shortages:
6. Brad Hess reviewed the domestic equity style index performance.
7. Brad Hess reviewed the asset allocation compliance, commenting
they were within the allowable ranges for each asset class and by
policy they did not need to make any changes.
8. Brad Hess reminded the board at the August 2022 meeting he
recommended they put in a redemption request to American Core
Realty (ARA). Brad commented real estate worked with a lag and
was not very liquid. Brad reviewed the redemption queue and the
redemptions received to date so far.
9. Brad Hess reviewed the asset: allocation of the fund. Brad
commented he did not have any recommendations to rebalance.
10. The Market Value of Assets as of December 31, 2022, was
$44,385,079. Brad Hess noted as of yesterday the Fund was at
approximately $45.8 million.
11. Brad Hess reviewed the financial reconciliation for the quarter and
discussed the cash flows.
12. The total fund net returns for the quarter were 5.50%. Trailing
returns for the 3, 5, and 10-year periods were 3.33%, 4.88% and
7.00%, respectively. Since inception (4/1104), net returns were
6.26%.
13, Brad Ness reviewed the performance of each manager.
Nate: Pedro Herrera joined the meeting at 10:35AM.
b Sugarman & Susskind, Pedro Herrera, Board Attorney (via Zoom)
i. Pedro Herrera commented the cybersecurity firm he requested to present
at today's meeting was unable to attend this quarter. Pedro commented
they could present to the board virtually at the May meeting,
ii. Pedro Herrera reviewed the changes made with the SECURE Act 2.0.
Pedro discussed the increasing required minimum distribution (RMD) age
and commented he would bring a drafted ordinance amendment to the next
meeting for discussion to keep the Plan compliant.
9. Staff Reports, Discussion, and Action
a. Foster & Foster, Chrissy Stoker, Plan Administrator
i. Chrissy Stoker introduced her colleague Stef Bravo, commenting Stef was
the Plan analyst who had been working on the Plan for over two years.
Chrissy stated Stef lived in the local area and had been handling trustee
travel and reimbursements, so she wanted to introduce her to the board.
ii. Chrissy Stoker commented Gee Cowan, Patricia Gleason, Tammy Brown,
and Gary Gleason were registered to attend the FPPTA Winter Trustees
School, with Tammy and Gary taking for the "Intermediate" segment of the
CPPT program. Chrissy reviewed the IRS reimbursement rate for mileage
was $0.655/mile:
10. Trustees' Reports, Discussion, and Action/City Liaison - None.
11. Chairperson's_R2port
a. Gee Cowan announced she was now a part ofthe FPPTA Education Committee
and was looking forward to this role. Gee thanked the board and the consultants
for their work.
12. Adjournment -The meeting adjourned at 10:55AM.
13. Next Meeting Wednesday, May 3, 2023, at 10:OOAM, quarterly meeting
Respectfully submitted by: Approved by
011
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Chrissy Stoke Plan Administrator Ge ui a Cowa Chair
Date Approved by the Pension Board`