Money monitor reports market rotation, portfolio moves; Poland and UBS positions replaced

The board's money monitor, Larry (speaker 6), told trustees that market conditions shifted in the quarter reviewed, with value outperforming growth and international markets benefiting from a weaker dollar. He described a rotation that improved active managers' performance and said bonds and several defensive asset classes posted gains.

On portfolio moves, Larry reported that the Poland manager was replaced by an S&P 500 index fund because Poland continued to lag its benchmark; assets previously in UBS real estate were transferred in kind into a Cohen & Steers tactical real estate fund combining public REITs and private funds. Larry said those changes, together with replacing Wedge's legacy product with the new QVM offering, address the managers who had dragged on returns.

Larry summarized performance metrics in the materials: the S&P 500 was up about 2.7% in the quarter; some defensive asset classes (convertibles, infrastructure) showed strong returns for the year; and preliminary private credit returns at the Churchill vehicle were positive, though final statements arrive later. He noted the report provided preliminary numbers and that the Churchill statements typically arrive about 45 days after quarter-end.

Trustees asked whether longer historical performance (10‑ or 50‑year charts) could be produced for public transparency; Larry said he would add a 10‑year column and consult the actuary for longer archives. He reiterated that while recent rolling five‑year stats had weakened, the plan had been in the top quartile historically over many rolling periods and that the recent strain was concentrated in two managers.

The consultant flagged no compliance issues and recommended no immediate rebalancing, noting he has monthly authority to rebalance small cash flows for benefit payments.

The board acknowledged Larry's report and asked staff to prepare any additional materials requested for the next meeting.