Sage View reports solid returns, flags PIMCO high-yield on watch for Cocoa city retirement plans

Lisa Drake, investment advisor with Sage View Advisory Group, told the Cocoa City Council that the city's participant-directed retirement plans held about $15,600,000 in assets and produced positive returns through the second quarter of 2025.

Drake said the 457 deferred compensation plan returned 6.6% year-to-date as of June 30 and 10% over the last 12 months; the 401(a) plan returned 7.07% year-to-date and about 11% over 12 months. Over three years, Drake reported 11.5% for the 457 plan and 12.5% for the 401 plan.

Sage View, which the council approved as the city's fiduciary investment advisor in 2021, also reported the plans' weighted investment expenses: roughly 0.40% (40 basis points) for the 457 plan and 0.46% (46 basis points) for the 401(a) plan. Drake said the city's total plan fee of 0.74% sits within a peer benchmark range of 0.45% to 0.87% for plans of comparable size.

Why it matters: the city's deferred compensation and defined-contribution accounts are participant-directed, meaning employees choose their investment elections. The quarterly oversight and fee benchmarking that Sage View described affect long-term retirement outcomes for city employees and the city's fiduciary exposure.

Sage View's update also described the advisor's watch-list process. The Loomis Sayles small-cap growth fund was removed in May 2024 and replaced with an alternative. The PIMCO high-yield bond fund had been on Sage View's watch list for three consecutive quarters; Drake said the committee expects a recommendation at its next quarterly meeting on whether to replace that holding.

Drake summarized regulatory changes from the SECURE Act and SECURE 2.0, which she said Sage View reviews with the city to keep plan documents compliant. She noted optional provisions the city has adopted — for example, some disaster and adoption distribution flexibilities — and highlighted a 2026 IRS rule change that will require certain high-earner catch-up contributions (for employees over age 50 who earn more than a specified threshold) to be made as Roth contributions rather than pre-tax deferrals. Drake said staff and Mission Square, the recordkeeper, are preparing plan-document amendments and payroll changes to implement the rule.

Mayor Michael C. Blake praised the presentation and the city's staff for stewardship of employee retirement dollars.

What's next: the city's investment committee, which operates under a council-approved charter, meets quarterly to review performance and fund-lineup recommendations and must report activity annually to council.

Ending: Council members asked clarifying questions about plan types and fees; no formal council action was taken at the presentation.