Chairman Mayor Smiley.

Vice Chair Women's Leveria.

City Treasurer, her husband.

Present.

Councilman Ryan is absent.

Mr.

Costello is also absent.

Mr.

Hirsch.

Absent Mr.

Lincoln.

We have four present three absent.

We have four.

Great.

Welcome everybody.

Umbody in here that we um we uh we'll start with that one, investment performance analysis.

Uh and asculating from uh single year provision.

Very good.

Uh good afternoon, everyone.

Uh if I could uh bring your attention to the first document in the three documents that we can do out.

Uh this is entitled City of Providence Employee China System Monthly Flash.

This would be the report uh on the market in very much brief terms as well as uh on the performance of the portfolio.

The retirement system portfolio and uh good strong returns in the month of May.

Uh, if you look at page one, the strong performance of the portfolio is flying by good market environment for public equities in May.

We saw continuation of strong returns in stocks due to uh the market's reaction, strong corporate earnings, a little bit of optimism about uh cooling down of tensions in the Middle East, which of course would uh hopefully lead to uh a resume of flow of energy and for all other goods and services uh that have been uh interrupted uh due to war.

And so you saw just to pick out a couple of indexes that the portfolio is invested against the SP five hundred year to date now through May, uh plus eleven point three percent, establishment on US equities, uh high single digits returns and the best performing part of the public equity market, where you're invested as well, uh, emerging markets, particularly in Asia, you saw strong returns.

Bond returns, the U.S.

aggregate index, which is on the far right hand side of page one.

This is all in more detail in a uh longer report.

That's the third document that we won't get to here.

But just want to give you the highlights.

But lately yields have come down a little bit.

So you're more or less in a flat return of the bond mark.

If we go to page three, uh, this would just be a summary of performance and I'll ask you to speak to the financial reconciliation.

Upper left hand side, uh, you can see the market value, and please stop me if uh if I'm getting other people.

Uh six hundred and thirty-six point three billion.

Uh and if you move from left to right, you can see the return in the month, fourth calendar for the left in the month of May, 2.6%, of course, driven overwhelmingly by stock market returns, which are strong.

And then uh the year-to-date return, which is the first five months of the calendar year, 7.1%.

And looking at the one-year rolling return, which should be June through May, 17.2%.

Of course, your fiscal year uh we're nearing the end of your fiscal year.

So hopefully there'll be a good strong return for the fiscal year with the uh year is over.

Looking at the portfolio itself, about 71% of the portfolio's assets were in public equities as of the end of the five-month uh calendar year period, the public equity portfolio returns for the year to date period 10.6 percent.

If we go to the next page, you can see fixed income about halfway down page four, approximately 20.5% of the portfolio uh in fixed income return in line with the market, uh, more or less flat, three tenths percent return for the year to date.

That's about halfway across from left to right and halfway down the page.

And then you can see uh at the bottom uh for, I'm sorry, on page five, the alternative portfolio, which we're doing some work on, uh hedge funds in particular.

Uh is you could see uh had a negative return.

I'll just focus on year to date hedge funds held 6.8% of the total portfolio.

Uh the return was negative 3.7% again.

We'll be reporting back uh to finance staff of Board of Investment Commissioners uh at a future meeting uh the work we're doing there.

And you can see cash at uh 1.4%.

Bottom line on the portfolio is return, good strong return, absolute terms, a little bit of underperformance, uh, some of which we're working on, obviously, uh in the alternative portfolio in the public equity portfolio, the managers there who have been underperforming uh brandyce in international equities, Robico, Boston partners, all those managers have outperformed since you've hired them.

Now that's the only metric we use to determine whether or not uh they still are suitable for the portfolio, but we have a good strong conviction.

We've had some active managers underperform the benchmark indexes in recent periods, a little more than usual, and partially uh that is attributable to kind of the buying and selling in tech stocks based on speculation about how much uh the hundreds of billions of dollars in investments in artificial intelligence are going to yield in terms of uh profits.

So that's the bottom line uh on the performance for the portfolio.

And I'm gonna let Peter speak to the financial reconciliation, unless there's any questions uh on the performance.

The only other point I'd make is the market environment through the first three weeks of June has been modestly negative.

Uh, some of that again selling off of tech stocks.

I think it was modestly positive this morning, probably a little more than modestly positive uh because of my current earnings, uh, one of the technology companies.

So uh this is volatility in the market right now, the stock market due to tech stocks, but on balance it's been uh more positive and negative, and you can see that uh in the in the relatively strong returns for the retirement system portfolio.

And Peter, I'll let you speak to uh the cash movements and for the reconciliation.

Any other comments you want to make uh starting on page eight.

Sorry to page six, I'm sorry, but you sets uh uh again.

We do this uh every month with the financial reconciliation, and this is basically what happened in order in terms of market value of cash flows.

Um we have uh we did see a roughly 12 million dollar contribution come in to the pension portfolio.

Um you'll see moving left to right the uh distributions of 7.5 million, which is uh pension payroll, uh as which is very typical.

Um, and uh you know, we had a very strong kind of growth of cap appreciation outcome for the month of May.

And that's consists of the strong equity returns and the snap back and very sharp rally from uh the kind of risk-off period that we saw uh earlier in the year.

So uh the portfolio grew uh from an investment term standpoint, roughly uh 15.5 million uh and then at 636 million.

I mean very good.

Um item one ocean to approve uh second buying shrine, second moving paper, five voters you guys have it two, special relativity trust and I'll show I'll take that on it, right?

Yes, uh so uh everybody we have the analysis of investment performance, just the city and province trust if we can move to page three.

If we can move to page three, um, you know, generally we're looking at uh the performance of the various trusts, uh, which are generally invested uh in the same way, uh, the same targets.

Um, there are some differences uh in the trust based on staff flows going in and out of the trust, um, and in uh certain cash balances uh between marriage um you know over time.

Um I think very similar to pension, we dominated by a very strong um one month return of 3.4 percent average throughout the portfolio um in line or slightly below the planned index.

Um, you know, ultimately there was a smattering of active manager under performance kind of consistently what we talked about with the attention, but a very difficult period for active management uh in this very strong up and down markets.

Um, just like the pension, uh the risk management, how we manage our exposures relative to targets was very positive.

Uh so we manage risk well, so we added value relative to the plan uh index um and largely the outcome is a portfolio return pretty much in line uh with its uh plan that's working.

Um thing I I would highlight on a one and three year basis, um five, seven, and ten.

If you look at each one of these portfolios, they are well exceeding our objectives for a trust are in the normal market environment.

And you're voting for returns, which is around eight percent.

So uh 24 percent, 25% return on a one-year basis, 18% annualized on a three-year basis.

That's probably two or three times what we would expect from portfolio's return.

Great outcome.

I'd love to see it, may not last.

We may have to give some of this back, uh, but short and long term, the performance is quite good.

Yeah, nothing.

This is when at our future day you remind us at the June meeting.

You said remember, I said it may not last.

Right yes, thank you, Mayor.

I'll trust you'll bring that up.

Thank you.

Uh that's all I have.

Great.

Any questions uh for Siegel or the truck management?

Seeing none, I'll take a motion to approve item two.

John, second move by Sarah.

All those in favor say aye.

Aye, any opposed, any assumptions, the ayes have it.

Um item three, if you know the carry forward item uh for possible discussion to oppose relevant and rebalancing their argument on this meeting, and so we would take a motion to continue item three to the next agenda, moved by John, seconded by Sarah, all of favor say aye.

Aye, any opposed, the ayes have it.

Uh now we will look at eventually we will vote on these together to save a little bit of effort.

Um, but as board members will remember, this is an annual process whereby the parks department draws down from dedicated funds.

Um we have uh to the representative department in case there's any questions, but we have uh drawdowns from the Eli Fund, there's a barrel around the town, the uh Charles Smith Trust Fund, the Elizabeth Gould Trust Fund, and the Tingley Trust, uh, along with the DM Jan trust.

Uh you'll see in your packet, you've got two letters, um backing up the requests, and um we also have the law departments at that station, but these are all consistent with uh intent of the various trusts and within the guidelines for their level of distribution.

Uh, I can share because I chair the parts commissioner, the board of parts commissioners, then the board of parts commissioners have voted on these as well.

Um, and just as a reminder, it was the Board of Parts Commissioners' decision on how to spend these funds.

It's our job to um distribute from and I'm assuming that it is uh in accordance with the draft guidelines and the government guidelines.

Um of that, are there questions or comments on the parts withdrawals?

C nine.

Um I'll take a motion to approve items four through nine.

Second by Sarah, and then uh we need to do this on a roll call book, and so I'll ask the clerks to place a roll call on it four through Chairman Mayor Smiley.

Yes.

City Treasurer husband.

Yes.

Councilman Ryan is absent.

Mr.

Crentelo is absent.

Mr.

Hirsch is absent.

Mr.

Winkleman.

Yes.

Four.

I three actions.

The motion passes.

Wonderful.

And I can say just as an aside, that the projects the Federal Department has approved are going to be great.

Contributions to our city.

Last item of business, which also happens every month.

Sarah Silveria has shared with us the cash flow report to show uh city contributions in the outflows.

This finds your way into your flash reports, but this is a cumulative accounting list.

It was a large deposit made um this week.

And uh and the city continues to do very well towards meeting its contributions and then actually making contributions early throughout the plan here, um, where we get the fact that there's some of the return interest um on those contributions, uh, but that report uh evaluated monthly and included here.

So I'll take uh motion to enter into the report that says employee retirement system cash flowing 2006 to 26 as exhibited by Sarah, second by John.

All those in favor say aye.

Aye, any opposed.

Um the ayes have it.

Is there any other business and responding?

Um I'd love to see the actual projects or some descriptions provided on the seven I think by that part by that rate.

And of course, there's all the authority fish in the board motion.

Um if there's no other questions or comments, uh second motion to adjourn.

John, I'm in seconded by the treasurer.

All those in favor of adjournment say aye.

Aye, any opposed, guys have it.

Thank you all.