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02-23-2022dec C-LER ONT card chart,;. City of Clermont Retirement Plan and Trust for the Police Officers DRAFT Minutes: Workshop February 23, 2022 1. Jason Sayre called the meeting of the Retirement Plan and Trust for the Police Officers Board of Trustees to order at 9:20 AM, February 23, 2022 in Council Chambers at the Clermont City Hall. Kyle Tintle called roll, as there was not a quorum, the meeting became a workshop. Those persons present included: TRUSTEES Scott Tufts, Chair (Electronically) G. Ross Hutto (Electronically) Jason Sayre Mark Vitek (Electronically) Chris Martin OTHERS Kyle Tintle, Administrator, Resource Centers Bonni Jensen, Attorney, Klausner Kaufman Jensen & Levinson Pam Brosonski, Finance Director (Electronically) Mitchell Brennan, Investment Consultant, BCA 2. Reports a) Mitchell Brennan, Investment Consultant (Burgess Chambers Associates) Mr. Brennan presented the investment report for the quarter ending on December 31, 2021. He reviewed the quarter's economic environment the market was down 10% from an all-time high. The Fed is expected to raise interest rates to help slow down the flow of money. They announced they will be tapering off the bond repurchasing plan. Ms. Jensen said this could be good for the pension plan with higher rate of returns for fixed income. The Plan earned $917,000 (3.1% gross and 3.0% net) behind the target index (5.1%), the one-year returns down below the benchmark (11.6% versus 14.2%). The beginning market value was $30,778,943 and the ending market value was $31,175232, a gain of $917,012 (3.0% versus the target index of 5.1%). The one and five year numbers showed gains of $3,200,166 and $7,627,679 respectively. Mr. Brennan reviewed the current asset allocation and he does not recommend a rebalancing at this time. He noted the domestic equity was slightly overweight, which could come down due to volatility in the market and the fixed income was slightly underweight. The market trend is shifting from growth to value as growth has underperformed in the current quarter. Two funds with less than favorable results this quarter were iShares Convertible Bond (EFT) and Am Funds EuroPacific Growth R6 (MF). Both funds outperformed the policy 2 years ago 26.8% versus 25.5% and 13.8% compared to 9.7%. The private real estate fund PREDEX fund has beaten the benchmark for the quarter at 8.5% vs. 8.0%; the one year return 23.2% compared to the ranking 22.2%; 2 year 11.9% and the NCREIF fund Index — ODCE (VW) was at 11.2%. The PREDEX real estate fund was the top performer for the quarter. Mr. Brennan reported the investment policy requirements where met. Investing in TA Reality will be an additional hedge against inflation. TA Realty will give a 30 day notice for the capital call which is expected during the 2"d quarter of the year, possibly in June. Investing $1,000,000 million or $1,500,000 approximately 10% in TA real estate will be a good addition to the PREDEX real estate fund. TA is a fairly new portfolio which holds space for ecommerce warehouse space and industrial real estate space. Adding TA Reality to the portfolio will be a big benefit for the long term as an alternative to fixed income and the capital call is expected in the 2nd quarter. City of Clermont CLER On, Retirement Plan and Trust for the Police Off T DRAFT Minutes: Workshop Choke of Champions February 23, 2022 c) Attorney Report (Bonni Jensen, (Klausner Kaufman Jensen & Levinson) Ms. Jensen presented an updated Special Tax Notice which reflected the IRS changes, including the new required minimum distribution at age 72 versus 70 %:. As of January 1, 2020 if you have not attained the age of 70 % by December 31, 2021 you may wait until age 72 to begin taking the required minimum distribution. Ms. Jensen reviewed the side letter for the contract with TA Reality, discussion the various options included with the contract. Ms. Jensen informed the Board of a retirement calculation anomaly which came to light during a retirement calculation for a Clermont Firefighter. She informed the Board the interpretation of the law put a cap upon the earnings when it was looked at with the payout when it is from a short year. The entire fiscal year needs to be looked at when there is a short year from changing from a calendar year to a fiscal year, the employees' income needs to be prorated. Ms. Jensen will provide an amendment to clarify the law which is not intended to cap the earnings that will have a perverse impact to the member. a. Administrator Report Ms. Tintle followed up with the City on the update of the audit process. She asked Pam Bronski if there were any pending items. Ms. Bronski informed her that items had been uploaded, including the buybacks from finance. The only pending item is the 2021 payroll, which is being worked on. Ms. Tintle informed the board that Mr. Edmonson has been paid his pending amount. b. Plan Financials Ms. Tintle informed the Board the items for approval will be included in the next quarterly meeting as the meeting is a workshop. The Trustees received the interim financial statement for December 31, 2021. 7.Other Business There was no other business. 8. Public Comment There was no public comment. 9. The next pension board meeting will be Wednesday, May 25, 2022 at 9:00 AM. 10. Jason Sayer called the meeting adjourned at 10:02 AM. Chair SC City of Clermont LEMON Retirement Plan and Trust for the Police Officers; CT DRAFT Minutes: Workshop hase cf Churrpicns February 23, 2022 Secretary L`�- �4, vez Date n%