MINUTES OF THE CITY OF SARASOTA FIREFIGHTERS PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OF SEPTEMBER 25, 2019 Present: Chair Michael Hartley, Vice Chair Shelia Roberson, Secretary/Treasurer Shayla Griggs, Trustee Charles Joseph and Trustee Scott Snow Others: Attorney Pedro Herrera, Pension Plans Administrator Debra Martin, and Senior Pension Analyst Anthony Ferrer Absent: None 1. CALL THE MEETING TO ORDER: Chair Hartley called the meeting to order at 9:00 a.m. 2. PLEDGE OF CIVILITY: Vice Chair Shelia Roberson read into the record a memorandum from Mayor Willie Charles Shaw, dated February 13, 2015, entitled "City Commission and Advisory Board Meeting Protocols and Pledge of Civility." 3. PUBLICI INPUT: None 4. APPROVAL OF MINUTES: 4.1. Approval Re: Minutes of the Firefighters' Pension Plan Board of Trustees Regular Meeting of July 24, 2019. A motion was madel by Trustee Joseph and seconded by Trustee Snow to approve the Minutes ofthe Firefighters' Pension Plan Board of Trustees Regular Meeting of. July 24, 2019. Motion carried unanimously (5-0). Attorney Herrera entered chambers at 9:03 a.m. 5. INVESTMENT PERFORMANCE REVIEW: 5.1. Presentation and Discussion Re: Renaissance Investment Management, Performance Review as of June 30, 2019 Presenter(s): Michael Schroer, CFA, Managing Partner/Chief Investment Officer, Renaissance Investment Management Mr. Schroer came before the Board and introduced himself. Mr. Schroer noted quarter to date up 2.1% performance while the benchmark index up 1.1 and for the fiscal year, the Plan is approximately 5% ahead of the benchmark. Historically, the downside capture has been about 93% with upside capture about 101%, over the last five years 93% on downside and upside. Mr. Schroer briefly reviewed sector weights and performance. Book 1 Page 159 09-25-2019 9:00 a.m. Book 1 Page 160 09-25-2019 9:00 a.m. Mr. Owens approached the Dias and questioned Mr. Schroer regarding performance over the past three quarter and asked if there been procedural changes. Mr. Schroer noted on an international level there were some changes such as earnings momentum, the window was shortened on intervals; and normalized price momentum methods. Chair Hartley asked ifiti is typical for thel Russell 1000 Growth Index to not have exposure into the energy consumer staples, and Mr. Schroer replied this has been typical over the past ten years. Mr. Schroer reviewed the international performance, regional allocations, and portfolio characteristics and added that the last three years lagging the benchmark; impacted from trade disputes. Trustee Snow posed the question what the downside capture on the international side and Mr. Schroer is replied 96%-97%. Trustee Snow posed the question regarding the pertormance of Kirkland gold and Mr. Schroer replied that typically gold stocks do not pay a dividend as they are reinvesting in their operations; they retain earnings; as production is expanded there is more money made. The Board thanked Mr. Schroer for his presentation. 5.2. Presentation and Discussion Re: Richmond Capital Management, Performance Review as of June 30, 2019 Presenter(s): Howard K. Bos, CFA, Portfolio Manager/President, Richmond Capital Management Mr. Bos came before the Board and introduced himself. Mr. Bos provided an update of the firm, which is in Richmond, Virginia; 100% employee owned; $5.7 billion under management, this year added portfolio manager John Sides. Mr. Bos discussed performance calendar year to date through August 31, 2019 the portfolio is up 10%; the benchmark is up 10 %% and that fiscal year to date, the return is over 8%; Mr. Bos added that with rates low, risk has been reduced. Mr. Bos provided a brief review of portfolio holdings and added that the Fund have moved more defensive as interest rates have fallen with reduced corporate exposure. Vice Chair Roberson asked why Visa is listed under Industrial on the portfolio holdings listing, Mr. Bos replied the index have put it as a consumer cyclical; Visa is financial intermediary as opposed to the Financial Institutions that the payment goes through. Mr. Owens approached the Dias and addressed Mr. Bos regarding strategy changes Mr. Owens replied weighting changes by ownership on the yield curve. Mr. Owens then addressed Mr. Bos and asked opinion on the catalyst for change over the next few years, Mr. Bos replied the big component is Treasury issuance and the demand for this issuance. Discussion ensued. Upon request from Mr. Owens, Mr. Bos gave a brief overview of repo rates, liquidity and how it effects the market. The Board thanked Mr. Bos for his presentation. 6. UNFINISHED BUSINESS: None 7. NEW BUSINESS: 7.1. Presentation and Discussion Re: Infrastructure Education Presenter(s): Scott Owens, Institutional Consultant, Institutional Consultant, Graystone Consulting Mr. Owens came before the Board and introduced himself. Mr. Owens noted MLP's have been volatile and currently seeking an alternative that will be beneficial to the portfolio; Infrastructure is an option. Ms. Martin left Chambers at 10:17 a.m. and returned at 10:21 a.m. Mr. Owens reviewed Infrastructure attributes, discussed statistics and differences between private and public issues. Mr. Owens added an overview of Infrastructure asset allocation risk and return expectations. Mr. Owens noted while MLP's are still part of Infrastructure currently only energy MLP's are listed. Discussion ensued. A motion was made by Trustee Joseph and seconded by Vice Chair Roberson to divest from MLP's effective with the new identification of a infrastructure product to invest in. Motion carried unanimously (5-0) The Board thanked Mr. Owens for his presentation 7.2. Presentation and Discussion Re: Revised Draft Investment Policy Statement Presenter(s): Scott Owens, Institutional Consultant, Graystone Consulting Ms. Owens came before the Board and introduced himself. Attorney Herrera noted the investment policy statement will need to be revised and adopt the new one; it does take 31 days to become effective. Discussion ensued. A motion was made by Vice Chair Roberson and seconded Trustee Joseph by adopt the revised Investment Policy Statement. Motion carried unanimously (5-0). Ms. Owens will bring a booklet for a manager search to the October meeting. Mr. Owens will arrange for those Infrastructure managers chosen at the October meeting to present at an upcoming meeting. Book 1 Page 161 09-25-2019 9:00 a.m. Book 1 Page 162 09-25-2019 9:00 a.m. Vice Chair Roberson asked when Brad from GRS will be presenting next, Ms. Martin replied January. Consensus to discuss assumed rate of return at the October meeting. Mr. Owens noted he will provide an asset allocation study at the October meeting. The Board thanked Mr. Owens for his presentation. 8. ATTORNEY MATTERS: Attorney Herrera reviewed upcoming educational opportunities. Chair Hartley noted that there is a Plan member who has approached the County regarding the Cancer Bill. Ms. Martin inquired regarding the status of the PBI contract, Attorney Herrera noted he would get back to her on the matter Attomey Herrera left Chambers at 11:05 a.m. 9. OTHER MATTERS: 9.1. Presentation and Discussion Re: Proposed 2020 Meeting Schedule Presenter: Debra Martin, Pension Plans Administrator Ms. Martin presented the proposed 2020 Meeting Schedule. Consensus was noted to accept the proposed 2020 meeting schedule. 9.2. Presentation and Discussion Re: Trustees Education and Travel Expenses Presenter: Debra Martin, Pension Plans Administrator Ms. Martin proposed clarification for administration of the Travel Policy. Discussion ensued. Consensus for Ms. Martin to prepare a potential revision of the Travel Policy to be presented at the October Meeting. Ms. Martin also discussed parking fee administration. Consensus to include valet parking option. Ms. Martin discussed the food expense; a flat per diem based on the GSA rate is an option. Consensus to have comparison chart composed of current rate versus GSA for the October meeting. Chair Hartley asked for Nuveen along with Ryan Casey from Cohens and Stern to be included in the Infrastructure Managers search. Ms. Martin noted Mr. Owens at Graystone Consulting will be advised. 10. ADJOURN: Chair Hartley adjourned the Firefighters' Pension Plan Board of Trustees Regular Meeting at 11:16 a.m. Sullaben Chair Michael Hartey Vice Chair Shelia Roberson Book 1 Page 163 09-25-2019 9:00 a.m.