Book 1 Page 106 4/27/18 8:15 a.m. MINUTES OF THE CITY OF SARASOTA POLICE OFFICERS' PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OF APRIL 27, 2018 Present: Chair Ron Baty, Vice Chair Demetri Konstantopoulos, and Trustee Jody Hudgins Others: Attorney Lee Dehner, Senior Pension Analyst Anthony Ferrer and Pension Specialist Lois Belle Absent: Secretary/reasurer Pamela Nadalini and Trustee Johnathan Todd 1. CALLI MEETING TO ORDER: Chair Baty called the meeting to order at 8:22 a.m. 2. PLEDGE OF CIMILITY: Chair Baty read into the record a memorandum from Former Mayor Willie Charles Shaw, dated February 13, 2015, entitled "City Commission and Advisory Boards Meeting Protocols and Pledge of Civility." 3. PUBLIC INPUT: No one signed up to speak. 4. APPROVAL OF THE MINUTES: 4.1. Approval Re: Minutes of the Police Officers' Pension Plan Board of Trustees Membership Meeting of March 23, 2018 A motion was made by Vice Chair Konstantopoulos and seconded by Trustee Hudgins to approve the Minutes ofthe Police Officers' Pension Plan Board of Trustees Membership Meeting of March 23, 2018. Motion carried unanimously (3-0). Chair Baty welcomed Joseph "Jody" Hudgins to the Police Officers' Pension Plan Board as a Trustee once again. Senior Pension Analyst Ferrer stated that Secretary/Treasurer Nadalini will seek an excused absence at the next meeting. 5. APPROVAL OF RETIREMENT REQUESTIS): None 6. INVESTMENT PERFORMANCE REVIEW: 6.1. Presentation and Discussion Re: SSI Investment Performance as of March 31, 2018 Presenter(s): James Kowal, Vice President, Institutional Client Service & Marketing, and Michael Opre, Portfolio Manager, SSI Investment Management James Kowal introduced himself, and Michael Opre, to the Board. Mr. Kowal discussed SSI Investment's risk mitigation strategy through convertibles; that there are no significant updates regarding the structure or philosophy and process of the firm. Mr. Opre provided detail on the fund's performance; that the Fund has performed in line with benchmark; that convertibles were one ofthe few asset classes that were positive in emerging markets in Q1 2018. He discussed the main drivers of performance, the market segment and sector performance; that there is opportunity in mid and large Market Cap; that the best opportunity resides in growth area; that SSI continues to like tech and industrial sectors. Mr. Kowal discussed how the convertible market has performed; that convertibles can help buffer the portfolio. Trustee Hudgins requested SSI provide insight into composition of the Portfolio snapshot on page 8 and to include all non-rated securities in the table in their next visit. In response to a question from Chair Baty asking what key geopolitical risks SSI analyses, Mr. Kowal stated that the firm looks to diversify and own securities that assume less risk. The Board thanked Mr. Kowal and Mr. Opre for their presentation. 6.2. Presentation and Discussion Re: The Boston Company Investment Performance as of March 31, 2018 Presenter/(s): Jerry Navarrete, Director, Senior Relationship Manager, The Boston Company Jerry Navarrete came before the Board and introduced himself. Mr. Navarrete provided an overview of the firm; that The Boston Company ("TBC") has changed ownership to BNY Mellon Asset Management of North America; that the strategy is designed to meeting growing client demand for more diversified, sophisticated investment solutions from a single provider; that TBC seeks to capitalize on alpha opportunities. Mr. Navarrete stated that that the Portfolio is down Q1, 2018 however there is less loss than benchmark; that the Portfolio characteristics are materially better than benchmark. In response to a question from Trustee Hudgins asking how SSI's ownership change benefits the Portfolio, Mr. Navarrete stated that the Fund will obtain savings from the very start of the change and that commission costs will go down in the custodial accounts; that the firm has eliminated some key redundancies and is better positioned to deliver positive returns. The Board thanked Mr. Navarrete for his presentation. 7. UNFINISHED BUSINESS: None 8. NEW BUSINESS: None 9. ATTORNEY MATTERS: Attorney Dehner stated that the legislative session has adjourned; that there were no bills passed which Book 1 Page 107 4/27/18 8:15 a.m. Book 1 Page 108 4/27/18 8:15 a.m. would be detrimental to the pension plan. Attorney Dehner reminded the Trustees about financial disclosure forms will be sent out and will need to be filed by July 1st with the County Clerk where they reside. Attorney Dehner provided an update on the Van Gostein disability; that his office disposed the cardiologist; that his office is in the process of scheduling meetings with the original exploratory officers. 10. OTHER MATTERS: Chair Baty solicited any other matters for discussion and Senior Pension Analyst Ferrer stated that the Annual Advisory Board dinner is scheduled for Thursday, May 24, 2018 at 5:30 p.m. Trustee Hudgins stated that he will miss the Police Officers' Pension Plan Board of Trustee Regular Meeting of May 25, 2018 due to a commitment made prior to the Commissioner's appointment to this Board. 11. ADJOURN. Chair Baty adjourned the Police Officers' Pension Board of Trustees Regular meeting at 9:04 a.m. Doh. Chair Baty Secretary/Treasurer Nadalini