Police and Fire Retiree Health Care Trust Board Meeting

CITY OF MADISON HEIGHTS POLICE & FIRE RETIREE HEALTH CARE BOARD REGULAR SCHEDULED TRUSTEE MEETING October 17, 2023 The regular meeting of the City of Madison Heights Policemen & Fire Retiree Health Care Board of Trustees was held Tuesday, October 17, 2023, at 10:07 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: Retirement System Attorney Thomas Michaud Morgan Stanley\Graystone investment advisors Brian Brice 07-24 Approval of Minutes of the Regular Meeting of September 19, 2023 Motion by Trustee Roberts and supported by Trustee Strongarone to approve minutes of the special meeting of September 19, 2023. Yeas: Bissinger, Geralds, Kunath, Roberts, Strongarone Nays: None Absent: None Motion Carried. Meeting Open to the Public No items were discussed. 08-24 Morgan Stanley\Graystone Consulting Investment Report Morgan Stanley Brian Brice discussed the Plan’s asset allocation, percentage of portfolio and differences to policy target. Investments in U.S. equities S&P 500 are down 3.3% quarter to date and up 13.1% up year to date, strongly supported by strong returns from the magnificent 7 (Apple, Microsoft, Amazon, NVIDIA, Google, Tesla, and Meta Platforms), which aer 65%-70% of S&P returns. NASDAQ investments are up 27.1% year to date. Emerging markets are up year to date 2.1% and China is down 7.2%. Cash earnings are around 5.3%. The retirement system portfolio is diversified so as to balance investments. 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 expected to discuss possible rate increases at the November meeting. Hedge fund investment with Brevin Howard began September 27, 2023, funded from cash in the amount of $784,974. The policy targets 3%, about $731,000, to invest in hedge funds. Private Investments have not yet been funded. As of September 30, 2023 returns were up net of fees 4.71% year to date, down 3.00% quarter to date, up 11.42% over the last 12 months, and up 5.57% over the last 3 years. The total assets as of October 6, 2023 were $24,370,007, as of September 30, 2023 were $24,584,050, and were $25,189,043 at September 11, 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 10/17/2023 New Business. No items were discussed. 09-24 Adjournment Motion by Trustee Roberts and supported by Trustee Bissinger to adjourn the meeting. Yeas: Bissinger, Geralds, Kunath, Roberts, Strongarone Nays: None Absent: None Motion Carried. The meeting was adjourned at 10:14 a.m. Respectfully submitted, Linda Kunath, Secretary 2 10/17/2023