Mariner reports small quarterly loss but fund broadly in line with targets; boards review IPS and Bitcoin query

Mariner told the Cocoa Beach Police and Fire Pension boards that both funds were marginally negative for the quarter ending March 31 but generally close to their asset-allocation targets, and the consultant reviewed the boards’ investment policy statement and answered questions about a hypothetical Bitcoin allocation.

Carrie, Mariner’s investment consultant, said the fire fund stood at about $19,010,000 and the police fund at about $18,600,000 as of March 31 (figures exclude a separately reported ASB position that would modestly improve returns when included). “You were marginally negative … on the order of down about 60 basis points,” Carrie said. She noted that the ASB position, when fully reflected, would improve quarter results by a “handful of basis points.”

Carrie summarized market performance: U.S. equities led losses for the quarter while international markets and bonds provided positive returns, and she said asset allocation helped reduce the Funds’ downside. On performance by manager, she flagged that some managers — including EuroPacific and Brandywine — had underperformed recently and were on her radar for continued monitoring.

Board members asked for more current figures beyond March 31; Carrie provided an update showing recovery through April and early May, saying the police fund was near $18.7 million and the fire fund just under $19 million as of the end of the most recent business week. She described April’s volatility tied to tariff-related market moves and subsequent policy clarifications that helped markets recover.

Carrie also walked the boards through their Investment Policy Statement (IPS). She noted the IPS adopts statutory limits (including a 25% cap on foreign securities), sets the real-estate target at 15% and includes a pecuniary-only investment requirement aligned with Florida law and HB 3. “Your policy index is going to be 50% of the Russell 3000, 15% of the MSCI ACWI ex-U.S., etc.,” she said, describing how the policy benchmark is constructed.

Finally, Carrie presented a short illustrative analysis of a 2% allocation to a spot Bitcoin ETF, which she modeled by taking 2% from domestic equity. She said a 2% allocation would have added roughly 40 basis points quarter-to-date and roughly 50 basis points on a one-year basis, but cautioned institutional adoption remains limited because Bitcoin lacks predictable cash flows.

Pedro, the board’s advisor, told members he had not seen public pensions adopt meaningful Bitcoin positions and that other consulting firms likewise have not broadly recommended it. The boards received the IPS review and the Bitcoin illustration as informational items; no policy changes or allocations to Bitcoin were proposed or approved.