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HomeMy WebLinkAbout9.24.25 Deferred Comp Meeting MinutesDEFERRED COMPENSATION PLAN COMMITTEE ST. LUCIE COUNTY, FLORIDA REGULAR MEETING Date: September 24, 2025 Convened: 3:00 PM Adjourned: 3:21 PM Committee Members Present: George Landry, County Administrator; Katherine Barbieri, Interim County Attorney; Nicole Moreno, St. Lucie County Clerk & Comptroller Designee (via video); Katherine Hazellief, St. Lucie County Property Appraiser Designee; Liz Walker, St. Lucie County Tax Collector Designee (via phone) Others Present: Jennifer Gainfort, Mariner; Maria Goncalves, Lincoln Financial Group; Vera Smith, Deputy Clerk, Recording Secretary CALL TO ORDER George Landry, County Administrator, called the meeting to order at 3:00 PM. APPROVAL OF MINUTES FROM THE JANUARY 22, 2025 QUARTERLY MEETING Katherine Barbieri, Interim County Attorney, motioned to approve the May 22, 2025, meeting minutes. Katherine Hazellief, St. Lucie County Property Appraiser Designee, seconded the motion, which was carried unanimously. II. QUARTERLY INVESTMENT PERFORMANCE REVIEW (MARCH 31, 2025)— JENNIFER GAINFORT (MARINER) Jennifer Gainfort (Mariner Institutional) handed the committee a printed report of the Investment Performance Review quarter ending June 30, 2025. She provided a brief market overview highlighting several changes that occurred during the quarter. The Columbia Stable Value Fund ended on April 1, 2025, and the ClearBridge Mid - Cap strategy has moved to the Harbor Mid -Cap Retirement. Euro Pacific moved to Goldman Sachs GQG, and DFA International Value was added on May 5, 2025. All changes have been implemented, and there were no issues in that regard. Ms. Gainfort provided a firm update highlighting the services provided, the success of the transition from AnclCo Consulting to Mariner Institutional, with a 99% client and employee retention rate. Ms. Gainfort advised from a market standpoint, the recent tariff announcements were much higher than anyone had initially expected. This led to a steep sell-off in the markets at the beginning of the quarter. Fortunately for participants and investors, the decline was short-lived. As quickly as markets sold off, markets then rebounded very nicely. The Federal Reserve held rates steady at 4.25-4.5% and later cut rates by 25 basis points due to concerns about the weakening labor market. This is the first time in a couple of quarters, and it is anticipated that there will be two additional rate cuts later this year. While the Major Market Index Performance was weak at the onset, it ended very strongly. Major indices performed well, with the S&P 500 Large Cap up 10.9%, the Russell Midcap up 8.5%, and the Russell 2000 SmallCap up 8.5% during the quarter. The International equities and fixed -income bonds also saw positive returns, with the MSCI ACWxUS Index up 12% and the aggregate bond index up 1.2%. For the one-year performance, the S&P 500 is up 15.2%, MSCI ACWxUS is up 17.7% and Bloomberg US Agg is up 6.1%. There is strength across the board, from a quarter and year perspective. Ms. Gainfort provided a breakdown of domestic equity markets, showing a reversal in market trends from the previous quarter. There is a significant disparity between growth and value stocks in the large -cap space. The 1000 growth benchmark outperformed the 1000 value benchmark by 14%, indicating a wide dispersion. The biggest contributor to the growth outperformance is due to Technology names, particularly those in Al. The mid -cap space saw significant growth in tech and Al companies, with mid -growth outpacing mid -cap value over the last year. Ms. Gainfort provided an overview of the asset allocations by class. The plan's market value decreased slightly from $24,826,207 in March to $24,719,128 as of June 30, 2025, due to distributions from the plan of $2.2 million. She provided an overview of various investment funds in the plan. The scorecard target date evaluates how the funds perform against the compliance metrics outlined in the investment policy statement. Many of the metrics have improved compared to last quarter. Previously, several were falling short of the 50th percentile for the five-year performance, but this has changed. There are only two that are slightly below the 50th percentile, but nothing stands out or raises any concern. Strategies have all been performing very well. The active mutual funds, such as the Winslow Large Cap Growth Strategy, a newer fund, showed significant improvement, outperforming the three-year benchmark. Vanguard is passing across the board, where the only other strategy that is failing on some criteria is Harbor Mid Cap Retirement, which was just added to the strategy. The Harvard Mid Cap strategy struggled in the mid -cap growth space, but historically performed well with no concerns. The other strategies, MassMutual Small Cap Opps, Dodge & Cox Income X, Goldman Sachs GQG Ptnrs Intl Opps R6, and DFA International Value I, are green across the board. The passive funds were reviewed for tracking error and manager tenure, with the Vanguard Real Estate Index showing a tracking error due to a spliced index. III. DISCUSSION Ms. Barbieri inquired about the possibility of adding funds that invest in precious metals (gold) or commodities. Ms. Gainfort explained the potential for a self - directed brokerage window for participants interested in such investments. It would still be in the Deferred plan, just wouldn't be an actual fund in the lineup. Participants would need to open an account within the account. It is not traditionally done because they tend to be risky and more volatile strategies. This would not cost any additional money to the plan; it would be on an individual basis, which may cost the participant some funds. Mr. Landry advised that more discussion will follow in the next meeting regarding participants adding funds to the plan. Mr. Landry made a motion to explore the possibility of what Lincoln offers for self - directed brokerage opportunities within the plan. Katherine Barbieri, Interim County Attorney, seconded the motion, which was carried unanimously. The meeting concluded with no further discussion. IV. ADJORN There being no further business to discuss, the meeting was adjourned at 3:21 PM.