Police & Fire Retirement System

CITY OF MADISON HEIGHTS POLICE & FIRE RETIREMENT SYSTEM REGULAR SCHEDULED TRUSTEE MEETING August 20, 2024 The regular meeting of the City of Madison Heights Policemen & Firemen Retirement System Board of Trustees was held on Tuesday, August 20, 2024, at 8:30 p.m. at 300 West 13 Mile Rd, Madison Heights, Michigan. Present: Chairperson, Jeff Geralds Board Members: Linda Kunath, Brett Moore, Anthony Roberts, and Gary Strongarone Others Present: Retirement System Attorney Thomas Michaud Morgan Stanley\Graystone investment advisors Brian Brice 9-25 Approval of Minutes of the Special meeting of July 23, 2024. Motion by Trustee Moore and supported by Trustee Roberts to approve minutes of the special meeting of July 23, 2024. Yeas: Geralds, Kunath, Moore, Roberts, Strongarone Nays: None Motion Carried. Meeting Open to the Public No items were discussed. 10-25 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 was up 4.3% quarter to date and 15.3% year to date. The magnificent 7 companies (Apple, Microsoft, Amazon, NVIDIA, Google, Tesla, and Meta Platforms) continued to influence strong returns in the S&P 500, July and August returns were up and Tesla was down 25% through August 12, 2024. Russell growth stocks had a greater value than value stocks. EAFE international for developed companies were off a little for quarter to date and up for year to date returns. The US Aggregate bond market, fixed income market increased .9% month to date, .1% quarter to date, and was down -.7% year to date, but improve to +2.9% to August 19, 2024. Investors are looking at long-term growth and in the second half of the year for rebound in international and emerging markets. REITs had better returns than real estate and diversified investment that includes private investments and hedge funds balance the portfolio beyond just investing in magnificent 7 stocks. June 30, 2024 final investment balance was $55,100,001.25, returns net of fees were up .51% quarter to date less than 2.18% benchmark, up 10.54% fiscal year to date less than 13.75% benchmark, up 1.24% the last 3 years less than 2.95% benchmark, and up 6.43% the last 5 years less than 7.37% benchmark. The total assets as of were $54,134,751.82 at August 12, 2024 and final balance was $55,100,001.25 at June 30, 2024. Motion by Trustee Moore and supported by Trustee Roberts to receive and file the investment report. Yeas: Geralds, Kunath, Moore, Roberts, Strongarone Nays: None Motion Carried. 11-25 Key Employee Incentive Program (KEIP) – Filzek J. Motion by Trustee Moore and supported by Trustee Strongarone to approve request for Service Retirement Benefits – Filzek J. Yeas: Geralds, Kunath, Powers, Roberts Nays: None 1 08/20/2024 Motion Carried. New Business. No items were discussed. 12-25 Adjournment. Motion by Trustee Moore to adjourn the meeting. Yeas: Geralds, Kunath, Moore, Roberts, Strongarone Nays: None Motion Carried. Meeting was adjourned at 9:13 a.m. Respectfully submitted, Linda A. Kunath, Secretary 2 08/20/2024