Start one call the April 23rd meetings for investment measures.

There's Matt Present.

Present.

Show Maria has been present.

Councilman Ryan.

Is absolutely David Hirsch.

Mr.

Winkleman.

Present.

Yeah, that president.

Thank you for your attendance.

And I want to stop you saying that's what the second one is.

Okay.

Also uh give uh the board's investment commissioners sure your work market environments change pretty marketing in the last several weeks, so getting an update on uh the last several weeks.

First thing you see, the month of March was a difficult month.

Uh everyone knows of course that immediately followed the February 28th, uh 2026 uh conflict when the demand started.

So you saw equities and fixed income markets uh sell off just to pick up one, I know the numbers are small, pick on one index that the uh funds are invested in.

Uh the SP 500 lost 5% of its value, so it was negative 4.3% here to date.

Other indexes lost comparable amounts.

But we also saw with concerns about the uh blockade or the uh the stoppage of the flow of oil for the straightforward moves was concerned about inflation, some of which are very real and kind of seen us today, uh had a pump that uh when there are concerns no about inflation, that takes bond yields up and the bond yields up, go up about bond prices as the commission uh go down.

So you get negative uh returns and bonds as well.

The Barclays US Ag and the Bond Index, which was a 1.8% for February, lost all those gains.

So that's the bad news.

Uh the good news is uh that uh if we were to update this from say last Tuesday, the SP 500 is now up about 4%, so it swung about 8% positive.

Uh small cap stocks are up about 11%, a little more than that.

Uh bonds gained a little bit based on a little bit of easing of concerns about inflation, the risk of being over least.

A lot of that is driven by uh better than expected news about corporate profits for the first quarter of 2026.

Uh Wall Street expected corporate America to have a pretty good first quarter.

Um, but depending on what reports you profits on the year over year basis, the quarter incomes 31st, 2026, we're up anywhere from 15 to 17 percent, and 80 percent of companies, at least within these governments, big companies uh through uh the last couple of days uh had outperform expectations.

So that's a good number.

Obviously, a lot of concern, a lot of risk in the market uh as a result of the work, but it's fair to say that the market is expecting that uh speculated, uh, that uh you have two combatants, if you will, who are heavily incented to try and uh try and come to some settlement uh or at least something short of uh exacerbated capital.

We'll see how that pans out.

But much more going on in the markets, the the labor market had a good report for uh month or uh March months of 4.3% inflation, which is reported elsewhere here, 3.3% of the year for March.

You could look at that and say, wow, that's nine tenths of percent higher than the February number.

That's the bad news.

The good news is it was in line with expectations.

So on balance, you have uh a market that's uh that's chugging ahead.

And when we go to the next page of the report on high level data uh for the retirement system, go back to the March page story uh with the negative with the sell-off, uh not quite a correction, uh, where corrections typically 10% sell off from most recent high-end index, but it's close.

Uh, with a pullback in the market, you could see in the fifth comment for the left at the top of page three, uh, fourth column.

My apologies, uh, the portfolio of the retirement system had a main four and a half percent return.

Next comp over the right, quarter to date, and year to date returns those are one of the same, of course, first three months that can be here for negative 1.8 percent market failure of the retirement system portfolio, far left-hand side, 57.4 million.

And we had a discussion before the meeting.

Um, if uh I put uh I could say I should say with uh 20 caps that negative terms now.

Uh if you asked us to issue the print this thing uh toward period time 21st or 22nd.

Uh so uh you're a much stronger position than at the end of March.

A couple of other comments before it asked me to speak to uh cash flow uh the financial uh reconciliation.

The three-month uh period has reforms primarily due to Boston's partner for the eco.

Uh maybe the small cap managers, uh, I would say both those managers uh have performance since you've hired them, so long term we're not concerned about those managers.

We'd like them to always have the form.

That's just not gonna be the case all the time.

Uh there's some other reasons, but I really single those two out uh as well as elsewhere in the equity portfolio uh sources of performance.

Longer term period period of Fed where it'd be cut the more than 12 month return through uh February 2026.

Put a stop on that.

Uh we're not waiting for that.

Other than to say that the hedge funds and price stocks from edit changes uh and our review is ongoing potential changes recommended changes, I should say uh to the hedge fund marketing for us uh becoming the future analysis.

Just go to uh one other just a couple of other records before I hand over Peter.

So public equity portfolio allocation was very close to your 68% target.

That's the second bottom second column from the left and 69%.

And then go on to the next page, page four.

Um fixed income portfolio, which is about half of the different page note, just take a code.