one day when Charlie came to the tornado came right up the river right across the park that would be a cool life night. No big thought but it stayed here. All right good morning. We will call the order the general employees Pension Board Quarterly meeting. It's Monday, March 10th, 2025, 10 o'clock. We'll please. Here here here here here here Item number two is public comments Be in there are none we'll move on to number three approval of the minutes from the December 9th, 2024 quarterly meeting. Does anybody have any corrections or changes or comments regarding those minutes? I'll make a motion. We approve the minutes of December 9th, 2024 quarterly meeting. I'll second it. All in favor? Hi. Opposed? Item number four. We've been right along. Reports. Hey. Looks like we have Frank lineup first. Yeah. Good morning, everybody. Good morning, my name is Frank. It was nice to hear everybody to chat about chat GPT and AI just before this. Because that is our kickoff for this quarter and therefore I didn't want to steal the mic after Bonnie had finished or else I would have nothing to talk about. So having that said our report begins on page 62 of the PDF document so it should be 62 out of 103 and I'll give everyone just a few seconds to get there. All right, once you're there, you should see a chart on the top right that highlights the energy demand that's needed by AI, by crypto, for data centers. So everything that we just talked about prior to this meeting, it takes a lot of power. So how AI will shape the reality of our lives will really depend on how much power we can produce. Based on the current scale, AI is not going to take over our jobs immediately. But is it a threat down the road short? So Delaina heard you say, there's a lot of cool things. Well, the cool things are great, but the applicable things are even better. But the problem with applications is that eventually replaces humans. So as of this past year, we've been spooked once by a Chinese firm called DeepSeek. And over the weekend, we got spooked again by another Chinese AI company called Manus. So now, not only are we the leader in AI, but the race is bridging, the gap is really close. And the reason that's happening is because AI platforms operate on something called open source. So when something creates gets created those codes are really open for someone to manipulate and also to do better right. So to get to this race yes you might lead for a little while but for someone to enter quickly and get to the same spot it can be done very cheaply and that's the challenge that we're gonna have as an economy in the US is one, we spent billions and billions of dollars between Google, Meta, right, and Amazon's of the world. They spend billions, but they have not built any applications that's profitable yet, right? So again, there's all this outlay to get the technology up. And then there's really no return on those monies yet. The Chinese companies are coming in a little bit later to the game, but they are able to kind of circumnavigate what all the expenses on our DR, right? And they can get to this endpoint or significantly less. And that's what's scaring-free at the moment. So this AI is scary. But again, I think it's scarier for US because how much money we've invested in this kind of realm, right? So as an example, DeepSeek, which is the first scare we got in terms of the fight between China and US, was able to build a platform that challenged chat GPT, that challenged the meta AI for only $6 million. Okay, Facebook's version of AI alone costs more than $20 billion. So you have $6 million versus $20 billion. So if people are saying, hey, I wouldn't believe those numbers coming out of China. Well, let's say we don't. Let's add another zero to it. That's 60. That's add another zero to it. 600 million, right? Even if you continue to add zero behind those numbers, it's still significantly cheaper. Right? So that's that's the craziness that we're facing today and why the stock market is reacting so violently is because the idea that things could be done for cheaper. Now think about the human cost aspect of it as well. So if you were to Google AI Developer Jobs California, the starting salaries are around $300,000. Hey, you were to Google Chinese AI engineer, the starting salary for US equivalent is less than $15,000. Why? Because they have more quantitative faith degrees, right? There's more population. As those people are going out of school and becoming engineers, they're more of them than they are of us here. So, demographically, they are going to likely to play a challenge because they are more graduating with high-tech degrees over there based on numbers alone. So there means the cost of labor is going to be lower than ours. So that's going to help them to win, you know, kind of this slow and steady race in the long term. But for now, you know, right now is truly a race of who can produce the best AI for whatever purpose is going to serve next. So we talked about Dolly, Dolly is an imaging application, but now the Chinese government is promoting this manus AI that's been touted over the weekend, and that's going to build websites for you. So that's going to be the next phase of AI. Once the baseline codes are laid out, they can now take it and make it into a software. And soon enough, you know, all the apps that we have on our iPhones, I'm sure there's going to be more. That's going to be able to handle more of our daily jobs, including marketing, including maybe paying bills, right. So as those applications come in, that's going to be the scary competition for the next phase. But again, coming back to our article now is whether or not we're going to have enough power to generate all the demands, right? So even though it sounds great, it's great for growth, but again, we may not have enough power. So Facebook is already looking into ways to invest in nuclear energy plants. Why? Because they know they need more power. Right now, the hottest investment topic is data center real estate. People are willing to pay millions extra for a shell just to be able to have access to the infrastructure and be able to accommodate for data centers. Again, these are unique scenarios that we're in, but whether or not these things will truly play out really depends on how what infrastructure is going to be laid out. In for China, they're still largely dependent on coal, right? So they're not as efficient in terms of generating power as we think. But are they spending more infrastructure? The answer is yes, right? So again, the world's got to figure out what is a balance act between how much infrastructure they need to build and how much production they need to have in place. And then how much AI they want to accelerate this growth that we need for the next leg of this race. race. But all that said, it has been fun to kind of watch the apps, right? You know, just as I feel like chat GPP came out only less than two years ago, maybe three, right? Before it was even fun to talk about, right? And then now people are using it on a daily basis for whatever reasons. Hopefully for for law clerks, right? They're not researching using chat GPP for their cases because that's turned out to be pretty, pretty bad, right? Right? Right. Right. Right. And I'll tell you a side story. So I serve on a scholarship committee where I review about 500 essays every year. And so it's for immigrants into the country and they're writing scholarships. When I see one, that's written perfecting, perfect grammar, with no spelling errors, there's a big question mark. My family came to the US right six months ago, and they wrote this three page perfectly written document. I'm gonna have to question that, right? So again, I think there are ways that teachers are getting smarter in terms of who is cheating, right? But again, I think there's some logic that that has to be as my wife's Christmas present this year. I wrote a book using AI. I even created a cover page with it with a binder found a company that did everything right as a gift to her for $35 in total. So told her afterwards, but she got, she got a kick out of it, right? So again, right, I've known writers, that's been writing for 10 years and can't publish a book. Right, so this accelerates what people can, cannot do, right? But again, I think we all see the potential and the scaryness of it, but again, the true reality is, what are the applications that businesses will buy? How does that solve our day-to-day lives? And I can truly see the use of it. For example, my wife is a physician and she uses electronic medical records. But when I ask a lot of her peers, what are you using? There's probably hundreds of EMR systems out there. Can know, can that be streamlined? Yes. Right. So as an organization tool, we heard about plant administrators, right? That have hundreds of plants. Well, how do you tell which plant is, you know, this multiplier, that multiplier, right? This age, as retirement, that age of retirement. Well, if AI can help you to build a database that can organize all that, right? There's a functionality to it. So there's, it's coming. It's coming. So the apps on your phone, again, based on what I think will happen, will continue to expand. We're going to be more reliant on these little apps, you know, just as we have seen the world with TVs and instead of channels, we're going to have different apps for it as well. All right. So all that said is there's some exciting things to happen, but in the meantime, because of all this noise and all this kind of scary competition around the world, the US stock market will just go up and down, up and down. Now, further to that, it doesn't help. Now, we have a president that's in front of a TV every day. And in front of the TV every day, there is a huge huge agenda right thrown out every single day. So that's just played so much noise into the market. And truly something that I, you know, I can't really address because I just don't know what's going to happen. For example, Doge is going to cut 758 leases that the federal government have around the country. What does that do to the real estate that we're invested in? I can't answer that because how many of our property have government tenants is very few, but how does that impact the prices of these commercial real estate is yet to be seen? Right? Because we're offset by the idea that corporations are calling employees back to office. So there is an offsetting factor, but again, what we know is that they're already saving, apparently on saving, on paper, you know, two to four billion dollars at the last month, right? And in the state of Florida, if you look at the 756 leases, there are 34 properties in the state of Florida that they're gonna go after, right? So these are a lot of it is fish and wildlife and example with the Department of Education. So these are all building leases that we have across the state of Florida. So a lot of it is thrown out there, but how does this shape out in the future? It's it's it's it's it's it's it's it's it's it's it's it's it's it's it play one day at a time and to really see how the US economy can absorb this. Now, that said, our word is being thrown around a lot in the last week. Prior to last week, the entire country didn't think the recession was of near possibility. But as of this past week, suddenly everyone thinks their recession is back, right? Again, more volatility in the marketplace. Now again, we have to peel everything back and say, all right, what is going to trigger a recession? In our mind, the most important thing right now are jobs and unemployment rates. Right? So as long as people have jobs, they're going to feel okay. But when people start to lose it, then that fear starts to melt. And I think that mounting fear is what really scares people from spending money. So right now, still on paper, our economy looks very good at 4% unemployment rate. And that is very strong. So as long as we can continue to see those numbers being similar before end of the year, even with the federal employees being cut 200,000 jobs, we should be okay. But if we see unemployment go from four to four and a half in a short term, then recession in my opinion will surface a little bit sooner than later. And then all this tariffs, right? We don't know what's gonna happen to the tariffs. So, you know, when we implemented the tariffs in China back eight years ago, that didn't really have any impact on our trade with China or vice versa. Because China took their steel, right? They shipped it over to South Korea, repackaged it and still made it over here at virtually not very little impact, right? So there are ways to navigate the tariff laws and the rules, right? So, you know, countries are smart. And likewise, when you look at the Chinese economy, they had record surplus while we endured record deficits, right? So that hasn't changed. So tariffs at the end of the day may not shape our economy, but it shapes long-term in terms of who we trade with. You know, by we start to stop buying as much goods as we did out of China, China found more trading partners in South America. So South America used to be, we used to be dollar transactions used to be the highest prior to last year. As of last year, the RMB or Chinese dollars or Chinese RMB have actually overtaken the US dollar as the trade currency. And that's a scary part, right? So in the long term, as we put these tariffs in place, the trade is going to be dispersed. Just as we talk tariffs with Canada, I've seen pictures of all the Canadian liquor stores pulling our Kentucky Burmids off their their shelves. And that again, it's going to play a long-term lifestyle impact. Short-term we may not feel it right because we just take the same whiskey, we're bourbon and ship it at elsewhere as part of the world. It's fine right because there's enough demand for it. But if we lose a long-term partner it's hard to get that back. So that's the worry I had. But, you know, as we talked about Canada, you know, a few years ago I said, hey, it was a great time to go to Europe, and last year it was a great time to go to Japan. I'm going to say it's actually a great time to go to Canada. Because of the terror of threatened threats we put it against Canada, right now, one US $1.145, $1.45 since Canadian. You know, when I went last year, it was 125, right? So I thought 25% off is a pretty good deal Now if you go to Canada you're gonna get 45% off on the goods that you buy right so again as we have this wars around You know, terrible it will let you in yeah, that's right. That's right so so you know think about the impact on paper, we shouldn't realize the pain immediately, but over the long term, if things stick, that's when we will see it. That's why I said, I don't have a short-term view, but I need to see some tangible numbers before I lay out a long-term projection. I'll, where should we invest? Right now is just so much noise. And that noise is a little bit scary, but I think being long-term investors, which have to be mindful of the long-term prospect of the US economy, which still suggests that we are the strongest, right? Because if we are weak as a country, then our dollar would weaken, not strengthen. But the fact that we are in these trade wars and our dollar strengthening, that means people are still buying the US dollar as a hedge against their own economies. So there's more money, more demand to buy our currencies, our bonds. That suggests that we are still the world leader in terms of safety. And there's know, we're else that people can find the same level of safety quite yet. So... the world leader in terms of safety. And there's no word at all so that people can find the same level of safety quite yet. So let's move on to some of the highlights of the report, starting on page 7. So on page 7, these are numbers for the quarter 1, 3, and 5 year periods. And periods and for the latest quarter The first column over you can see that we were fortunate up to squeeze out a gain of 0.2% for the period ending in December 31st and that was very favorable Because as you recall our plan is very conservative meaning that we have more bonds in the portfolio. Bonds lost 3.5% this past quarter. So by having an overweight in this portfolio and US stocks has been the source of offset. Now, that seems completely contrary to what we've all learned, right? Because bonds in terms of uncertainty should provide that safety But in the light of the tariffs right people were expecting inflation is skyrocket So starting from really late called October to late December You know when the the incoming president at that time was you know his, you know, yes, proposals. All the tariff talks were already kind of back in session. The unknown what he was gonna do had already suggested that inflation would go up. So by January 7th, we saw the US tenure, US Treasury yield, tenure rose from 3.8 to 4.8%. That's a 1% jump in the long-term tenure, which also translated into mortgage rates that reached a low of 5.7% going back up to 7.5%. That's how much of an impact that we saw just in a 2.5-month month period because everyone was really suspicious of how the tariffs would impact our economy. So that said, right, now the R word is back, the 4.8% US tenure is back down to a 4.2. So the bond market is getting whiplashed. So we haven't seen an area that's considered safe as part of our portfolio for a long time. Because over the last three years, where bonds used to be safe, we saw bonds lose as much as 15%. So in normal circumstances, you would rebalance, re-risk, in terms of how do you reposition the portfolio by switching in and out of bonds? And in and out of stocks, right? So when you de-risk, you buy more bonds. When you re-risk, you buy more stocks. That was a simple kind of just shift. But now, right, we have all this volatility, not only the stock market, but also the bond market as well. And that's what's causing a little bit of a nightmare. nightmare. It's because it's hard to gauge where can we take risk off and receive a benefit, but we were able to kind of balance that over the past quarter. Now, the second point I'd like to mention is that the area that we have been rebalancing away from your plan can be found on page 11. So your plan demands a lot of benefit payments because you're a closed plan. You have an aging population of retirees. However, you know as as we are mindful of the returns over the last two years, I want to just highlight the Vanguard Growth Index Fund for the one year period on page 11 and produced a rate of return of 32.7%. And the calendar year prior, this fund earned 39% right. So collectively in the past two calendar years, you made over 80%. So I think I reiterated this at the last meeting is to say that whatever's gone up that much, we should just take some profits off Right, so that's where we have been taking money off the table to fund your benefits So by default we are reducing a lot of our risk, right? Because anything that goes up 80% especially in this bucket that's led by AI Now it is down and is down significantly So last year you heard of the term Magnificent 7, right? As which is led by NVIDIA in this little group NVIDIA produced chips and makes a lot of the AI GPUs. So as we think about the chip makers, they really did roar. So last year if you own NVIDIA as a stock you earn more than 140% on your return. This year, NVIDIA is down more than 20%, 25%. So whatever's gone up that fast, it's likely to have a little correction. But again, this is an area that we're just simply rebalancing away from. So I would suspect that we will continue to rebalance away from the large cap growth sector for some time, because I don't think that the news out AI is going to stop, right? There's going to be more competition and more applications being developed at a much cheaper cost point. And if, for some reason, some other company come out with a better chip than the video, then the whole sector could drop even more. But just the volatility itself, as we've seen through the news, is that the market is ready to reprice some of the US large-cap technology-based companies. Now, reprising is a healthy part of the market because we did believe in that these companies at the top last year were very expensive. And that is, you know, anything that goes up that much without a doubt are becoming more and more expensive. So, this is just a natural part of the market going up and down throughout the cycle. But for now, we still believe in the idea that the U.S. companies will continue to grow. Right now, if you look at some of these growth trajectories, some of the US large-cat companies are still expected to grow at 20%. So then on the oncoming or the incoming quarterly reports that these public companies share every quarter, if they continue to meet that expected earnings, then we're OK. Again, right? So there's first layer, its unemployment, the second layer of what we look for is whether or not a high percentage US-based companies can meet their earnings and sales goals. If that's the answer, then we should not have in every session this year, right? But if one or the two starts to play fade, then our concerns will go up. And right now, numbers still look favorable across US-based organizations. As we move our market down, international, so international equities has been underweight in our portfolio for some time. Right now, we have roughly a 7% exposure, and that's been a key success factor for this plan because your peers on average have roughly 16% exposure international. So within our portfolio American Fund Zero Pacific Fund has you know $832,000 across the board. Now interestingly enough right international is making a term because while everyone's talked about US stocks being so expensive, and the tariff war has cost the currency to fall, there's an extra gap of cheapness that's now occurring with international markets. So think about, you know, just as I mentioned, with Canadian dollar worth 1.45. What does that mean? That means I'm telling you to travel to Canada, spend money in Canada so you can buy more goods in Canada. So when the money's cheap, a country can actually get a stimulus out of it because more it'll track more purchases of their products. With our US dollar climbing up so quickly, all the other currencies are fallen and therefore they automatically got a bit of a stimulus behind their backs. And at the same time, the European Union, specifically in Germany and France, issued a huge stimulus package with their own economies. So not only is the Euro cheap, guess what? The German government is planning to inject, I think, 1.1 trillion dollars into their own country, right, as a secondary stimulus. So therefore, the international market suddenly got a huge boost. But will that be enough, right? So remember last year, Chinese government came out and issued a 1.3 trillion dollar stimulus package. At first Wall Street celebrated that the Chinese stocks actually went up by 25% in less than 30 days and then it all came crashing down because even though it sounded great 1.3 trillion dollars down the great it wasn't enough once everyone kind of devaluated the number and the size of what's necessary to stop this Chinese recession. China is going through a pretty sizable pain period because again, the real estate is what's created wealth. Now the real estate market has taken a bit of a tumble, a lot more of tumble than we have experienced here. So as we evaluate this new package coming out of Europe, again, questions to be known because they have structural issues behind their economy. And these are structural issues that we're still not comfortable with. So while there are some of our peers chasing their money to say, hey, everything is so cheap, we like to believe that maybe they're cheap for a reason, and let's be a little bit more cautious before we rebalance into a sector that has troubles. Just think about what happened in the fourth quarter. We had South Korean president. That's about to go to jail because he called the voter of what is that term that they used? Marshall Law. Yeah. So he almost started a coup, right, himself. And you look at Emmanuel Macron. There was a vote of no confidence for him. So in terms of leadership, yeah, that's right. Trudeau as well. So on. That's right. So all of this, all of this is happening in the fourth quarter. but yet the foreign stocks are up. Really, right? So there is, there is something about being cheap and something about maybe a little caution would be necessary. So that's where we are. While we do see an opportunity potentially in the long term, but we want to see things, they will rise a little bit more before we overweight into the sector. Right now we're underweight, but maybe we'll slowly add back at some point. So across the board, you're actually in pretty good shape in terms of your balance between domestic stocks versus international stocks. So then coming down to Private Real Estate at the center of the page, the good news is that we did see a second quarter of positive return in private real state. And remember, private real estate was there in lieu of bonds, right, as an alternative bonds, because our private real estate is an asset called high quality core. Core means it should be about 85% occupied. High quality means that these are not aging properties. That needs a lot of work. So what we invested in through American Realty are really the top notch buildings. And therefore, we as landlords are expected to collect income. So when people ask, how can you call real estate as a bond substitute? It's because both can predictably give you a source of cash flow. OK? the real estate, as we know, could go up in price and just like bonds, as we learn can go up and down in price. But in this case, because we own the highest quality of real estate, in theory, they should move less in terms of price fluctuation. Having that said, the reason that American Realty had a markup is also based on the idea that some of their office properties will mark down to a bottom. So now from a bottom, maybe there's a mark up as there's an aggressive call, right? There's been a huge call for people who go back to the office. I said a joke at the meeting last week with Bonnie. There's a company in Seattle that announced on a Thursday or Tuesday of a prior week to say, all employees, you must be back into the corporate tower on Monday. But didn't give everyone any notices, right? But when the employees all showed back at the door, what did they find? They didn't have a desk, they didn't have a computer, they didn't have anywhere to sit. So they were all just standing there waiting for orders. But I think that speaks to the tone of what the companies want. They are setting a tone to say, we need your butt in your seats. There's no more this hybrid work environment, even though you may not have a desk, right? So what are they going to do in terms of that? At least they are likely to expand. So lay. environment, even though you may not have a desk. So what are they going to do in terms of that? At least, they are likely to expand it. So latest conversation we've had with the real estate managers across this entire pool is that they actually expect their office towers, the rents they collect, whether it's from existing tenants or new tenants to improve by more than 13% this year. So that's going to be a really positive pop in terms of what the value of that property will be, right? Because in real estate, there's income-based appraisals, how much your building is worth? There's also the comparable, right? Whether your neighbor's sold next door is at a different price point. So in terms of the income-based appraiser, if you get a 13% markup, that is a huge jump into how much your property is worth. So for the second consecutive quarter, we have seen a positive trend in that sector. But now, with Doge, the Department of Government and Efficiency, canceling the releases, that produces a big question mark. So we enter this year, as a team, we actually talked about potentially adding back to real estate. But now with this idea of doge, we have to really tread that little carefully, because we may see influx of properties for sale soon to hit the market. So we just want to make sure the timing of both interest, whether it's domestic equity, international equity, or bonds or real estate is appropriate before we dive in and add more to it. And then suddenly, you go back to a period of deep appreciation versus appreciation. That makes sense. So we enter this year with a lot of light that we were happy with. We could have made a lot of changes. But now all these noises surface. So we're just waiting for some data to settle. But again, so far, second consecutive quarter of positive return, how to real estate. And comparably speaking, bonds this quarter, as you see here, were down close to 3%. Your bond manager did a little bit better, so that helped. So over the past year, for example, integrity, which is a bond shop here based in Orlando, earned 1.3% more. So they did truly a great job in managing money. But for the latest quarter, again, there were nowhere to hide. You know, so the bond market was down three and they were down 2.7. So we can't win them all, but for now, you know, they've done a pretty good job relative to the benchmark that we have assigned them to. Okay. So bonds, interesting, you know, story. That's right. That's right. Yeah. That's right. Yeah. So you're absolutely right. I think, you know, a lot of times we forget what happened the quarter before, because we only meet on a quarterly basis But last year they had six quarters or four quarters, right? But plus two quarters prior so six quarters total of Negative markdowns. That's a lot of pain But you also had the period when bonds were up last year, right? So as a compliment to your bonds they actually worked out quite favor. So when bonds were losing, real estate was gaining. And now vice versa, when bonds are down, real estate is regaining. Now we hope both of them gain at some point, which we might see, you know, this quarter, as we sit. But again, I think from a diversification standpoint, we all understood, right, from a, we used to go from two legs, the stool, now we have three legs, right, so that one of these hopefully will go up in different directions over time and help you over all plan. So again, to be determined, whether or not we'll add back to real estate, but again, some bright lights, at least, that's worth mentioning and favorable favorable news for us to consider down the road. One point related to alternatives in general, as a closed plan, this is not a huge concern for you, but you're purest across the country. Whether it's a billion dollar plan, or a hundred million dollar plan, or a 20 million dollar plan, are all shifting into the world of private investments. Right, so the first entry for your plan was private real estate and right now we have a very small exposure. So American Realty total exposure 8%, right? But if you were to compare private investments we have, which is 8% through American Realty versus FRS, 34% and all other type of investments. You look at Louisiana's pension plan. Whether it's the teachers, police, or fire, they're over 55% of their portfolio in terms of allocation to privates. So there has been just a huge shift in the last five years in terms of how pension plans are invested. No one's gonna know who's gonna be right or wrong because once you give your money away, it's locked up for 10 years and at the end of 10 years you'll know how good you did, right? So it's a very interesting dilemma that we face, right? We contemplate with, but for you guys because you're a closed plan, we can't go there. We can't have your money locked up because you just need to pay benefits. Liquidity is critically important. But again, just wanted to share a little bit of nuance related to what's happening in the industry. But coming back to bonds, one last point I'll mention is that there are scary trends in the marketplace. So for example, one interesting article that has been shed some light on is related to these federal leases. So historically, people have always thought, hey, if you are backed by the US government, then that money is safe, right? But there are bonds issued based on the idea that it would be backed by federal lease. And those mortgage-backed securities or those buildings are actually worth 25% less as a bond that's backed by the US Treasury. So we have seen different parts of the real state sector being hit a little bit harder, and especially now with Doge coming in, that sector as we cancel our lease contracts, it's gonna be very interesting to watch. And if a bond loses the good faith of the US government, then that could trickle into other problems in this kind of fixed income sector. So again, more noises to contemplate with, but I will say that when I spoke to integrity last week, they have zero exposure to a federal lease bonds, where a federally or regionally, you know, backed federal, you know, income-based bonds. So no concerns here at all. And then lastly, in terms of your plan, you'll likely to see a small loss this quarter. We're already quarter away through March. We're going to close our first quarter books. It's been a wild ride for Stocks Market. Stocks this year. We're holding on to positive and negative for the first two months. But now we're about 2% underwater right now in terms of stocks. Your bonds are up about 1.5% and real estate is up about 1% so those two should off-site each other. But the stocks, right, it has been really spooked and that spooked, you know, market tends to have a volatility to range as little bit more. As we sit here today, just to note that you might be sitting at a small loss, but that loss should be still better than your peers. Let's hope that we can remain in a favorably positioned. We we are going into, you know, this quarter, we went into this quarter with a gain versus your peers having a loss, right? So this quarter, we eaked out a gain of 0.2% on average, a public pension plan lost 0.9%. So we built it at 1.1% gain relative to our peers. We just hope we can hold on to that. All right, so I talked a lot. I'm happy to just shut up here and see if anyone has any questions. I have a question being on. You're talking about how the AI system's looking for power shows to rent. Have you heard anything about our real estate looking into that? Yeah, so right now the data centers are a huge topic. American Realty is slowly moving into more industrial warehouses. What are those industrial warehouses gonna do? It's a big question mark, right? Because all you need is a shell. You know, and then you need computer wires to Google along with it. So I think it's a trend in general, but those properties that are earmarked to be data centers specifically are very expensive. And it's hard to buy something as such premium at the moment. Right now, if you were to Google St. Petersburg, there's a manager that's buying a lot of land and real estate trying to make St. Pete the data center hub of Florida. That's going to be very interesting to watch, but they're paying top dollars. So, for example, I think they just close on a deal for $300 million at a cap rate of 3%. Right? Which their dividends through this potential lease back to whoever's gonna build these data centers, it's only gonna be 3%. You can go to the bank and get four and a quarter right now. So would you buy a real estate with a lease that's only 3%, right? So that's the expensiveness of how crazy the data center play has been. But if you owned it and you wrote it up, great. So I think American Realty has a couple that they own, but they have not focused primarily in this area of core data centers. Now in the core space, right? So there's four major components that make up what we call core real estate that's backed by stable tenants. There was our typically apartments, office towers, industrial and retail. So all four are going to be the anchor of it. But these managers will always carve out a sleeve to invest in something that's unique. For American real estate, their tactical play in real estate has been to build to own apartments, to build to to own, you know, town homes. So they built 400 units out of Tampa and right outside of Temple Terrace. So those are town homes that, you know, the people can rent, right? So they end up owning these units of town homes as their outside play, right? So these four sectors, but typically people just do one thing as uniquely different. And then aside from that, American Realty did spend roughly about 1.5% of the portfolio on self-storage units. So it's a small weight, but I imagine they may add to it because self-storage has been an interesting topic as well. So between the apartments and self-storage, I'm not sure how much room that leaves or future developments into the data centers, but I'm happy to follow that up with the next quarterly update as well. Yeah. Yeah. Yeah. Yeah. That's right. Yeah, no big fan. You need big fans to cool them down, right? So yeah. Big ACs or big fans were built it in a refrigerator or underground. We can't do it underground here, obviously. Yeah. Yeah. Yeah. That's right. Yeah, no big fan. You need big fans to cool them down, right? So yeah. big ACs or big fans, or build it in a refrigerator or underground. We can't do it underground here, obviously. Yeah, no big fan you need big fans to cool them down right so yeah big ACs or big fans were It built it in a refrigerator or underground. We can't do it underground here obviously I think about the original computers how they were like The whole building was a computer center They just said Yeah, we have a lot of good going on but right now it's just all the noise kind of locks all the good right and now we get a lot of bad in the news as well. So let's just filter through all the noise and turn off the TV once in a while. And are we about to hear a session? No, we can be. I feel pretty good. Overall, I feel pretty good. All I feel pretty. All the numbers actually even inflation. Don't look at the egg prices, but everything else it seems like it's it's it's tamed as control. We invested. You know funny enough. I probably are not going to get broken. Yeah, yeah, so you know, I have a friend's in the chicken business. And I've never been more fascinated in chicken farms than ever. But he had to kill all these chickens because of the scare of the virus. But the insurance actually covers him for any chickens that he has a slaughter. So it truly is a recession for business. And I knew that until this past weekend, you know, talking to more about his family's chicken farm business. Until next year, when he needs to pay the insurance for his family. That's true. That's true. So some things are going to catch up. Right? When a insurance company go bankrupt or some things, right? Just as we're dealing with, you know, our homeowners and whatnot. I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I running around as well well with egg prices that's right egg prices these days they may they may not run around for too long oh yeah I was going to say yeah yeah anyways what thank you for allowing me to share Are report. Thank you. Thank you. It was a farmed in. Yeah. The information you got. Okay. We'll move right along then. Item. We'reents. The summary plan. You hear it now. Thank you. Can you hear me now? Okay. So the summary plan description, we've updated it for your one active participant. So it's set to be effective as of today if you approve it. On the second page, second numbered page, we updated the provisions on the Board of Trustees to match your new statutory, new code provision where we added in the provision that, you know, if the union certification was revoked, which I believe it was, you know, the member would be chosen by a, the fifth member would be chosen by a majority of their previous members. going on to page 9 We added in provisions on the filing for retirement. So we put in a time frame, you know, people should think about coming in before retirement and setting the expectation that it could take up to 60 days after retirement to receive your first pension check, but also to add in a provision that if there's an error, we're going to correct it. And whether we owe the member money or the member owes us money, we're going to make it right just to set that expectation as well. have the updated IRS provisions there, but otherwise it's in good form for your approval. Oh, yeah, sorry, we did we updated Troy. We're appropriate. Now, if we approve this, does this mean that we have to quote unquote vote me back in, or because I'm still here, it just continues on, or it's on about here. It just continues on till the end of your term. And then the next term, they would make a decision about the fifth. So now it will start at three year term. No, you'll have that your term will end when you're the current, your current term ends. And I don't know, Troy, do you know that answer? I know time goes by really fast for me, but I feel like I've been here in my memory years. That's why. Alright, it's been that bad. No, it's just, I wake up and I figure, I got a couple of more days and the next thing I know is three years later and I'm going, where do you go? It's true. So we still on your last term was 115, and 20 says no term restoration. Right, because when I was in the union, there wasn't a term restoration. So would this new effect could be said, would this not create? Well, then I guess if we didn't have a termination, sure. I mean, so we have to have a big two, start softening. Yeah. So it would be I can look at the ordinance and see what the effective date. Oh, it's actually here. No, I'll have to look. I'll have to look at the date. Come on.. Sure. You're good for that. Okay, well, that brings up my next question. If it does come to one of those things where I need to be quote unquote voted back in, is it going to be open to like all the employees and all of the the retirees So it would be the The board decides the board will make a recommendation and then they would decide if Okay, it's all between the board As a ministerial duty between the board. The whole, I saw that. I saw that. I saw that. I saw that. I saw that. I saw that. I saw that. I saw that. I saw that. I saw that. I saw that. I saw that. I saw that. I saw that. I saw that. I saw that. I saw that. I saw that. I saw that. how you want to process it. I mean, if you want to fill out applications, you can ask the city to gather names of people. That's up to you all, how you want to process it. We didn't go into that much detail in the ordinance itself about your process. So we can set up a policy. I mean, normally, if she wanted to stay, we would just re-reinstate her if she wanted to stay we would just re-reinstate her if she wanted to leave we would we would then open it up at that point. That's up to you all. Yeah. Are you gonna run it? Yeah. I mean to make it simpler and willing to serve I say time comes that we need to open it up and I'm not to serve. I say, you know, you all under your vote. So the time comes that we need to open it up. And I'm not sure it says just point it by. We can open it up to all employees. You all would decide so, you know, it could be a citizen. It could be anybody that you wanted it to be. Any other questions regarding the summary plan? I'll make a motion to be approaching the summary plan. Second. All in favor? Opposed? Question passes. Okay. Anything else, Bonnie? Nope, that's it. I did just, um, you were attached to your agenda on the religious side of the changed mileage. So I've just gone to 70 cents from 60 cents. Oh, thank you. Troy. I'm going. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'ming. You can't wave it. All right, item number five, new business. There is none. Item number six, old business. There is none. Item number seven, consent agenda. Payment and ratification of warrant number 97. There are no new invoices for payment approval and the fund activity report for December 3rd through March 3rd. December 3rd, 2024 through March 3rd, 2025. I make a motion, we pay the bills. Very motion. Second. All in favor? Aye. Aye. Opposed? First pass. To approve the consent agenda. Item number eight, staff reports. Mr. Troy. Okay, don't have much. You probably have seen this already. We just have changed to, because we have so many people that are working on your plan behind the scenes, and sometimes things happen. Somebody has a hard to see an injury or whatever. So when we send out a quorum email, we have just decided to send it to the new email, the form at foster.hikentoster.com. This way, if the normal person who sends it out is unavailable, any of us and team members from pick it up. And you don't have to worry about not recognizing the email. It's just a simpler way to say, I see forums, it's lost or it doesn't matter who's on it. It's just this way we have flexibility hey, I see forums, it's lost or it doesn't matter who signs. It's just this way we have flexibility to be able to get that out there, get it back from me and we have that in the end of the day and that's all I see. Because some of you are like, I don't know if you're not really interested in the seller, but we do it because it didn't say you're interested in the seller. So, quorum, that foster, foster, this is how we're going to do that. Okay. I don't have anything else. No, I would email me directly. Yeah, just easier. Just say, if it's something specifically about meeting or meeting topic, even though she can port it wherever it is, it's gonna be there. It's just a more direct line to come straight to me. If I need to farm it out to somebody else, maybe you have an analyst on your plan and they're handled so a lot of stuff for me. I'm going to start with six of those. So if I need to send it back to them, I can't It's something that's one of. If it's not, if it's something's mine, then it's already got to be. So it's just a quick way to just send it to me. I don't know if it's going to be good. OK. Item number nine, Trustee Reports. Anybody have any feeling for the good of the order? We will adjourn at 10.56. Thank you, everybody. Thank you. Thank you. Thank you. Thank you Frank and Bonnie. Thanks, everybody. Thank you. Thank you. Thank you. Thank you everybody.