General Retiree Health Care Trust Board Meeting

CITY OF MADISON HEIGHTS GENERAL RETIREE HEALTH CARE BOARD REGULAR SCHEDULED TRUSTEE MEETING September 19, 2023 The regular meeting of the City of Madison Heights General Retiree Health Care Board of Trustees was held on Tuesday, September 19, 2023, at 10:10 a.m. at 31313 Brush Street, Madison Heights, Michigan. Present: Chairperson, Jeff Geralds Board Members: Eric Bissinger, Linda Kunath, Anthony Roberts, Gary Strongarone Others Present: Morgan Stanley\Graystone investment advisors Brian Brice 04-24 Approval of Minutes of the Regular Meeting of July 18, 2023 Motion by Trustee Roberts and supported by Trustee Strongarone to approve minutes of the special meeting of July 18, 2023. Yeas: Bissinger, Geralds, Kunath, Roberts, Strongarone Nays: None Absent: None Motion Carried. Meeting Open to the Public No items were discussed. 05-24 Morgan Stanley\Graystone Consulting Investment Report Morgan Stanley Brian Brice discussed the Plan’s asset allocation, percentage of portfolio and differences to policy target. Cash continues to provide strong returns and is 15.06% of portfolio, policy target is 0.00%. Investments in U.S. equities S&P 500 are 18.7% up year to date, strongly supported by 12.4% returns from the magnificent 7 (Apple, Microsoft, Amazon, NVIDIA, Google, Tesla, and Meta Platforms). The federal reserve target of 2% inflation has not yet been met. The risk of economic recession has increased modestly for 2023. The federal reserve is not expected to increase rates at the 9/20/23 meeting, but two more .25% interest rate hikes are still anticipated before 12/31/23. Europe equities are up year to date, with Eurozone STOXX 50 up 18.0% and France CAS 40 up 17.5%. US size-style is up year to date, with Russell 3000 and Russell 3000 Growth up 18.0% and 31.0%, respectively. In the Capital market indices, the US aggregate bond market was down -0.7% quarter to date and is up 1.4% year to date. Bonds still offer decent relative value and the potential for portfolio hedging. Hedge fund investment with Ironwood has been reviewed and may proceed with $500,000 from cash in investment portfolio. Investment has a year-to-date return of 4.2% and is anticipated to return 7.6%. Ironwood is a fund of about 30 funds, and all these funds are used to diversify the hedge fund return with less risk. Terms are a minimum of $250,000 investment, semi-annual liquidity with 95 days written notice, 1 year lock-up, 1.45% fee, no placement fee. Private Investments have not been funded. A August 31, 2023 returns were up 8.37% year to date, up 0.40% quarter to date and up 6.15% over the last 3 years. The total assets as of September 11, 2023 were $16,865,897 and were $16,854,761 at July 10, 2023. Motion by Trustee Roberts and supported by Trustee Bissinger to receive and file the investment report. Yeas: Bissinger, Geralds, Kunath, Roberts, Strongarone Nays: None Absent: None Motion Carried. 1 09/19/2023 New Business. No items were discussed. 06-24 Adjournment Motion by Trustee Bissinger and supported by Trustee Strongarone to adjourn the meeting. Yeas: Bissinger, Geralds, Kunath, Roberts, Strongarone Nays: None Absent: None Motion Carried. The meeting was adjourned at 10:19 a.m. Respectfully submitted, Linda Kunath, Secretary 2 09/19/2023