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Clermont Fire 11-30-2022 Quarterly Meeting Minutes5�' CLERMONT Retirement Plan & Trustfor Firefighters of the City of Clermont DRAFT Minutes Quarterly Meeting November 30, 2022 1. Chair Judd Lent called a Quarterly Meeting of the Firefighters Retirement Plan Board of Trustees to order at 11:22 AM on November 30, 2022 in Council Chambers at the Clermont City Hall. Mr. Baur called roll on behalf of the Board. Those persons present included: TRUSTEES Judd Lent, Chair Ryan Moore, Secretary Adel Guerrero, Trustee (electronically) Richard Pastor, Trustee Adam Watkins, Trustee 2. Approvalof Minutes: OTHERS Scott Baur, Administrator (Resource Centers) Mitchel Brennan, Investment Consultant (BCA) Bonn! Jensen, Attorney (KKJL) Samuel Oppe, Palen Capital Chuck Carr, Actuary, Southern Actuary Services Larry Cole & Mitchell Brennan, Investment Consultant, BCA Electronically: Marsha Pridgeon and Nadine Ohlinger (City of Clermont) Pam Brosonski and Nancy Ziccardi,(City of Clermont) Kyle Tintle, Administrator (Resource Centers) The Trustees reviewed the Quarterly Board Meeting Minutes dated September 14, 2022. Ryan Moore made a motion to approve the Quarterly Board Meeting Minutes dated September 14, 2022, The motion received a second from Richard Pastor, approved by the Trustees 5-0. 3. Reports: Investment Manager. (Samuel Oooe—Palen CapIWI Mr. Oppe introduced himself to the Board and described the investment team's philosophy with long term investors. Palen has 4 office locations, with $44 billion in the large growth strategy. He reviewed the strategy of investing in the 20 to 30 attractive businesses in the United States. The portfolio has a low turnover with a 5 year average holding period. Mr. Oppe reviewed the performance, down-34.71% since October 26, 2021 compared to -23.58 for the benchmark. He discussed factors weighting on the market. Mr. Oppe reviewed the current holdings, Meta Iformerly Facebook and Adobe detracted significantly from recent performance. Meta decreased their advertising revenues and increased in the "Metaverse" which does not create any revenue. The manager lost conviction in the company management and sold the holding. Adobe acquired Figma for $20 billion and the market reactive negatively but Palen remains committed to Adobe. Mr. Cole questioned the weight to Amazon. Palen sees longer term potential for Amazon. Judd Lent asked how the manager targets weighting in the portfolio holdings. Mr. Oppe said Palen sees a strong potential in the next 5 years, over the longer periods strongly outperform the benchmark. The Russel 1000 Growth has became more concentrated and harder to outperform with 5 names concentrate 50% of the benchmark. Mr. Cole further reviewed longer term performance. The consultant continues to have confidence in Palen as a manger. r Retirement Plan & Trust for Firefighters of the City of Clermont CLER ONT DRAFT Minutes Quarterly Meeting November 30, 2022 Ouartedv Investment Report: Investment Consultant. (tam Cole & Mitchell Brennan- BCA) Mr. Brennan reviewed the markets. He compared the current market downturn to historic markets, Even the decline in 2022 is more normal in historic terms. Companies had positive earnings growth. Mr. Cole reported both stocks and bonds suffered declines at the same time, and bonds suffered the steepest losses on record as interest rates increased more quickly than anytime He reported that producer prices show signed of moderating, good news possibly for inflation. Given the unusual markets the consultant will recommend only minor adjustments to the portfolio. The yield curve inverted substantially, a likely sign of a recession. Mr. Brennan reviewed the current asset allocation and performance In further detail. Only real estate provided gains for the past year. Real estate show signs of slowing, however, with office vacancies increasing. He recommended the Board rebalance assets from real estate to fixed income. Predex has the next redemption in January. Mr. Cale said the Plan still has about $1 million in cash. He recommended taking the $1 million in cash and move it to short-term fixed income as well. Ryan Moore made a motion, based on the advice of the Investment monitor, to redeem $350,000 from Predex and take $1 million from cash, to split between Vanguard and the Fidelity Short Term Bond Fund. The motion received a second from Ariel Guerrero, approved by the Trustees 5-0. Adam Watkins was called out of the meeting. The Board considered the outlook going forward Mr. Brennan reported performance for the current quarter improved substantially, with all managers showing strong returns. Attomev Report: Bonni Jensen (Klausner. Kaufman. Jensen & Levinsonl Ms. Jensen provided 2 memos about proxies, an asset of the pension plan. The SEC will make the process to view proxy votes of managers of comingled funds more transparent. She also reported that a change in Delaware law will allow companies to insulate officers from liability for reckless conduct. She recommends the Board ask mangers to vote against any such changes on proxies. Richard Pastor made a motion to direct counsel to send a letter to managers to vote against the provision on proxy votes. The motion received a second from Ryan Moore, approved by the Trustees 4-0. Ms. Jensen differentiated the difference between corporate officers from directors. She provided a memo on the required minimum distribution (RMD) updates. Finally, Ms. Jensen provided a memo on Post Traumatic Stress Disorder (PTSD) benefits for public safety officers who commit suicide. A member must be diagnosed, sought help, or suffered a traumatic episode creating PTSD, Administrator Reoort: Scott Baur (Resource Centersl Mr. Baur presented a memo of the Resource Centers' SOC iType 2 Audit Report. For the past 15 years, his firm has successfully completed a review of the internal policies and procedures The audit is conducted by an outside auditor comparing actual workflow to stated procedures. CLERRAONT Retirement Plan & TrustforFlrefighters of the City of Clermont DRAFT Minutes Quarterly Meeting November 30, 2022 The next agenda item is the proposed meeting dates for 2023 memo, which followed the current established dates and times. Mr. Baur informed about the rescheduled 51" Department of Management Services conference, in Orlando, is on December 130 to 150, 2023. There is no registration fee, only a cost for the hotel. He asked the Trustees inform him of their plans to attend. Mr. Baur concluded his report with an update on the 2022 ordinance. 4. Benefit Approvals The benefit approval for David Block was presented. Mr. Baur provided a detailed report on buybacks and a list of historic refunds due to members. Ryan Moore made a motion to approve the benefit for David Block. The motion received a second from, Judd Lent approved by the Trustees 4-0. 5. Plan Flnanclals Mr. Baur presented the Board with the Interim Financial Statement dated September 30, 2022 for informational purposes. The interim financial statements were received and will be filed. Annroval of Invoices. Warrant Dated November 30, 2022 Mr. Baur presented the Board with the Warrant Dated November 30, 2022, for review and approval. Ryan Moore made a motion to approve the Warrant dated November 30, 2022. The motion received a second from Rlchard Pastor, approved by the Trustees 4-0. 6. Other Business Richard Pastor reported that he sold his house and will relocate to Philadelphia. T 7. Public Comment No members of the public had any comment. There being no further business and the next meeting having been previously scheduled for February 22, 2023 at 11:00 AM, Judd Lent adjourned the meeting at 12:54 PM. RReess'p'e�eccttffuuulley.,Submitted, an-PAe^.,.�eeretarY- 14tia-%