Police and Fire Retiree Health Care Trust Board Meeting

CITY OF MADISON HEIGHTS POLICE & FIRE RETIREE HEALTH CARE BOARD SPECIAL SCHEDULED TRUSTEE MEETING November 19, 2024 The special meeting of the City of Madison Heights Policemen & Fire Retiree Health Care Board of Trustees was held Tuesday, November 19, 2024, at 10:22 a.m. at 31313 Brush Street, Madison Heights, Michigan. Present: Chairperson, Jeff Geralds Board Members: Linda Kunath, Brett Moore, Anthony Roberts Others Present: Retirement System Attorney Thomas Michaud Morgan Stanley\Graystone investment advisors Brian Brice Excused: Board Member Gary Strongarone 4-25 Excuse Trustee Gary Strongarone Motion by Trustee Roberts and supported by Trustee Moore to excuse Trustee Gary Strongarone from the special meeting of November 19, 2024. Yeas: Geralds, Kunath, Moore, Roberts Nays: None Absent: Strongarone Motion Carried. 5-25 Approval of Minutes of the Special Meeting of August 20, 2024. Motion by Trustee Moore and supported by Trustee Roberts to approve minutes of the special meeting of August 20, 2024. Yeas: Geralds, Kunath, Moore, Roberts Nays: None Absent: Strongarone Motion Carried. Meeting Open to the Public No items were discussed. 6-25 Morgan Stanley\Graystone Consulting Investment Report. Morgan Stanley Brian Brice discussed the Plan’s asset allocation, percentage of portfolio and differences to policy target. The S&P 500 had 10 sectors posted positive returns in the third quarter of 2024, including Utilities 19.4%, Real Estate 17.2%, Industrials 11.6%, Financials 10.7%. The 10-year yield on US Treasury note closed the third quarter at 3.78%, down from 4.40% at the end of the second quarter. The yield on 3-month Treasury bills was 4.62%, lower than the end of the second quarter. The Bloomberg US Aggregate Bond Index, a broad measure of the US bond market, increased 5.2% in third quarter of 2024. During the third quarter of 2024, the Federal Reserve cut the Federal Funds rate by 50 bps after a hiking cycle that began in 2022. The rate cut happened after data showed decelerating inflation and signs of cracking in the labor market. September jobs market data showed a strong labor market, the unemployment rate stayed at 4.1%, and inflation is decelerating to 2.5%, which is below 9.1% peak in June, 2022. 1 11/19/2024 September 30, 2024 investment balance was $28,399,173, returns were up net of fees 5.53% quarter to date less than 5.85% benchmark, up 10.82% fiscal year to date less than 14.40% benchmark, up 5.93% the last 3 years less than 6.51% benchmark, and up 9.38% the last 5 years more than 9.12% benchmark. The total assets were $28,303,099 as of November 6, 2024 compared to $26,929,984 balance at August 12, 2024. Motion by Trustee Moore and supported by Trustee Roberts to receive and file the investment report and discretionary memorandum. Yeas: Geralds, Kunath, Moore, Roberts Nays: None Absent: Strongarone Motion Carried. 7-25 Discuss Proposed Meeting Dates 2025 Motion by Trustee Roberts and supported by Trustee Moore to approve proposed meeting dates for 2025. Yeas: Geralds, Kunath, Moore, Roberts Nays: None Absent: Strongarone Motion Carried. New Business. No items were discussed. 8-25 Adjournment. Motion by Trustee Moore to adjourn the meeting. Yeas: Geralds, Kunath, Moore, Roberts Nays: None Absent: Strongarone Motion Carried. The meeting was adjourned at 10:34 a.m. Respectfully submitted, Linda Kunath, Secretary 2 11/19/2024