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HomeMy WebLinkAbout3.5.26 Deferred Comp Meeting MinutesDEFERRED COMPENSATION PLAN COMMITTEE ST. LUCIE COUNTY, FLORIDA REGULAR MEETING Date: March 5, 2026 Convened: 2:00 PM Adjourned: 2:16 PM Committee Members Present: George Landry, County Administrator; Katherine Barbieri, Interim County Attorney; Eric Collins, St. Lucie County Clerk & Comptroller, Finance Director; Monte Kosoff, St. Lucie County Tax Collector Designee Others Present: Jennifer Gainfort, Mariner; Vera Smith, Deputy Clerk, Recording Secretary CALL TO ORDER George Landry, County Administrator, called the meeting to order at 2:00 PM. I. APPROVAL OF MINUTES FROM THE SEPTEMBER 24, 2025 QUARTERLY MEETING Katherine Barbieri, Interim County Attorney, motioned to approve the May 22, 2025, meeting minutes. Eric Collins, St. Lucie County Clerk & Comptroller, seconded the motion, which was carried unanimously. UARTERLY INVESTMENT PERFORMANCE REVIEW (December 31. 2025)—JENNIFER GAINFORT (MARINER) Jennifer Gainfort (Mariner Institutional) presented the committee with a printed report on the Investment Performance Review for the fourth quarter ending December 31, 2025. She provided a brief overview of the market environment, highlighting strong equity returns and the S&P 500's double-digit gains for the third consecutive year. She detailed the S&P 500's performance, with a 2.7% quarterly increase and a 17.9% yearly gain. The combined three-year return of the S&P 500 is over 86% since the end of 2022. She advised that Volatility was present due to tariff - related headlines, inflation concerns, and a government shutdown. Despite volatility, the market did not see significant sell -offs or inflation increases, remaining below 3%. The Russell MidCap index performed a little weaker, up 0.2% and closing out the year at 10.6%, while the Russell 2000 SmallCap index is up 2.2% and closing out the year as a whole at 12.8%. Overseas markets, particularly the All Country World Index (MSCI ACWxUS), performed well, up 5.1% for the quarter and 32.4% for the year, benefiting from the weakening of the U.S. dollar. Also, the All Country World Index is a little bit more overweight to some of the value -oriented sectors, and value markets really outperformed within that overseas bucket. The fixed income aggregate index (Bloomberg US Agg) was up 1.1% for the quarter and up 7.3% for the year. The Fed is starting to cut interest rates in the second half of the year. In the Domestic Equity Style Index Performance, there was a shift in leadership for the quarter. Value outperformed growth in the domestic equity markets, with the Large Value Index (3000 Value) up 3.8% versus Large Growth's (3000 Growth) 1.1% for the quarter. For the one-year market, growth Indexes led, except for the mid -cap space. Al and tech stocks continued to drive market performance up from a one-year perspective. Year-to-date returns show the Large Growth 1000 Index is down 4.8%, while the Large Cap Value Index is up 7.2%. Small caps are also significantly outperforming. The Small Cap Value Index is up 8.9% year to date, whereas Small Growth is up 3.7%. Then the Fixed Income aggregates are up 1.75% currently year to date. Ms. Gainfort provided an overview of the asset allocations by class. The investment plan's market value increased from $25,286,110 to $26,157,619 from September 30 to December 31, 2025. Everything is fairly similar, quarter over quarter, and no changes were made this past quarter. Throughout the last year, several changes have been made. Allocation changes included switching the large debt growth manager from Allspring to Winslow Large Cap and replacing the Dodge & Cox fixed Income strategy with a lower -cost share class. Other changes included moving from Columbia stable value to Lincoln Stable Value, ClearBridge mid -cap moved to Harbor MidCap, the international growth manager moved to Goldman Sachs GQG, and an international value fund was added with DFA International Value. She advised that a lot of changes have occurred in the last several quarters, which have been a benefit for the overall plan asset allocation. From a compliance standpoint, the Scorecard for Target Date Funds shows mostly green metrics, with the 2020 fund trailing slightly due to its conservative nature. The Winslow Large Cap growth strategy trails the index but performs well within the top third of the peer group and outperforms a majority of the other Large Cap Growth active managers. The Vanguard Windsor Large Tech Value Fund passes all metrics. The Harbor Mid Cap has been failing across the board for the last three quarters within the market, particularly Small Mid Caps, due to market leadership in low -quality, high -beta stocks. In the fourth quarter, Harbor Mid Cap had a shift back to a much more normalized market, with of high -quality managers doing better in companies that produce strong earnings. Harbor Mid Cap outperformed the benchmark by 4% this quarter, which may clarify some of the failing metrics, and there are no concerns regarding this fund. The MassMutual Small Cap strategy also underperformed slightly in the 3-year return, lagging the index by 52 basis points, but it remains within the top third of its peer group. The strategy performed better in the fourth quarter, and the remaining metrics look good, so everything is positive in that regard. Fixed income funds, including Dodge & Cox Income X and the newly added Goldman Sachs GQG fund and DFA International Value, performed well across all metrics. The returns on DFA International Value. The DFA fund was added for additional diversification. In the past year, the value fund on the international side was up 22% versus the Goldman Sachs GQG, which was up 15.8%. They are both now performing their benchmark. In closing, she advised that the investment plan is in a good position, with recent changes benefiting overall asset allocation. III. FOLLOW-UP DISCUSSION Ms. Gainfort mentioned the self -directed brokerage window, which was discussed last quarter, and asked if there was any interest in moving forward. In response, Mr. Landry advised that it will be discussed further with the Board and brought up for a vote in the next meeting. The meeting concluded with no further discussion. IV. ADJORN There being no further business to discuss, the meeting was adjourned at 2:16 PM.