The Supplemental Retirement Board Meeting held on August 3, 2023, in Portsmouth, Virginia, focused on the performance and management strategies of the city's retirement fund. Key discussions revolved around investment strategies, portfolio performance, and adjustments to management.

The meeting highlighted a significant trend towards passive investment management, which has led to increased investments in major stocks like Apple. This shift has implications for institutional investors, who are often underweight in these large-cap stocks due to their size. The board noted that retail investors tend to drive stock prices higher through momentum buying, which can lead to overvaluation in the short term.

In terms of performance, the retirement fund reported a year-to-date return of over 9%, translating to an increase of more than $16.5 million in trust assets since the beginning of the year. However, the fund's performance was slightly below its benchmark, primarily due to being underweight in stocks and particularly in large-cap companies. The board acknowledged that the underperformance was expected given the current market dynamics.

The meeting also addressed recent changes in fund management. The board terminated its relationship with BlackRock due to unsatisfactory performance and made adjustments to diversify its equity investments. These changes included consolidating managers and shifting focus from concentrated portfolios to more diversified strategies.

Looking ahead, the board expressed confidence in its current management team and indicated plans to increase stock allocations to align with target benchmarks. The discussions underscored the importance of adapting to market conditions while maintaining a long-term focus on generating returns for beneficiaries.

Overall, the meeting emphasized the board's commitment to prudent management and strategic adjustments in response to market trends, aiming to enhance the fund's performance in the coming years.