Ruth O'Beary. Present. Present.
Treasurer, Heaven. Present. Councilwoman Ryan. Present.
Mr. Costello is absent. Mr. Birch is absent. Mr.
Richland is absent. Board present,
free absence. He's a forearm.
Terrific. Thanks for joining us. I think this will be a pretty efficient meeting today. We'll ask our friends from Seagull, Julian, Peter to start with that.
And one, please, performance analysis. Great. Good afternoon everyone. I am going to review just a private exhibits. I'm pleased to review the exhibits in the report titled City of Province for Retirement System for period and the first from from six.
Just a quick update on the market on page one that we can add during the month of July as the board of commissioners will probably fall July was not necessarily negative month for the markets. We had the resumption of the pamphlet in Iran push energy prices up. And when energy prices push up inflation expectations push up, bond rates go up, bond prices go down. So bonds were negative during the month. That shows up in the UBUR US aggregate index having a negative 1.3% return for the month and negative seven tenths of percent for the month of, for the year to date through July.
Stock index returns were modestly negative as well, but it's worth pointing out that still through July, we end up with good year to date returns, 10% plus for the S and P 500, better returns for small cap stocks and international stocks. And that's where we can put the kind of diversification of those markets would have paid off. I will say this year, we're not asking for the 08/20/2026 report, but again, the market since then positive in August, primarily with U. Corporations with reported earnings in the second quarter of twenty twenty six were actually came in ahead of expectations. The market environment, notwithstanding challenges with inflation, challenges in the bond market, which are significant, the market has been perhaps in the face of the first two weeks of August.
And we go to page three, through this period of time, while the retirement systems portfolios index was negative, negative six times a percent among the fourth, current and the left, the actual portfolio protected better downside, on you have a modest and positive churn. The reason for that, the returns three tenths of percent was because of some outperformance, we'll be growing blocking partners, of your public equity managers, brands, and also the hedge fund portfolios did better than their index that helped. The pension system, the retirement system portfolio as shown in the upper left hand side, page three, ended the period with 646,600,000. I'm rounding down and you can see year to date returning 0.4%, that's six columns into the left, one hundred thirty five year returns, 14.5, 13.38% respectively. Asset allocation from an asset allocation standpoint is shown a second low from the top, second problem from the left, your equity allocation is 7.7% at the end of the period.
So no need to rebalance above the target, but well below the matching threshold. And then going to the, I'm gonna skip over page five, six, page four, the fixed income portfolio held 21% of assets versus a 24% target. So again, within a range, not an action of low variance and your return for the bond portfolio basically flat negative one tenth percent. You had one bond, Andrew outperforming. They don't perform pretty significantly since you hired The U.
In the sales, but it's been a tough market for bonds and really a lot of it's been because of the inflationary pressures. Boots, it's a record portfolio has worked well and hedge funds also was reported in the last page, public funds report page five. You can see that I'll just stick with the year to date numbers. The hedge fund that profit minus 10% for the year, first seven months of calendar year, 84.6% respectively. With that, I'm just gonna turn it over to Peter and just let him run through the financing life assemblies you need.
So on page six of the same document, we're looking at the report for the month ending July 31, and I'm going to group the committee just an update on the past few hours looking at performance in a slightly different way. So if you look at the top line total plan, the market value of the weighted retirement system began in the month at $653,000,000, reached at $653,000,000. There was the typical pension payroll, which reflects the distributions of roughly 8,000,000. And we also had the cash generation on that slight positive return been kind of driven by the reasons that Julian highlighted earlier, just about a million dollars. The net result is a portfolio that's just shy of $637,000,000, let's say, 07/31/2006.
We did not rebalance the portfolio last quarter, which ended up being pretty resilient and so that the action in the month reflects that. Next month in August, we'll be talking about contributions coming into the pension plan that have already occurred on our annual report next month. Any questions on the financial reconciliation portion? No. I usually talk about rebounds in June, Stolen or Thunder, suggesting we're not recommending any this period and we won't do it again.
And so I'll stop there and mention.
Great. Are there any questions or comments that aye on the line?
Seeing none, don't think I have
a motion to approve by the amendment. So moved.
By Councilman Ryan, seconded by the director Husson. Yep. All those in favor say aye. Aye.
Any opposed, any abstentions? The ayes have it. Item two, discussion related to various trusts. Peter? Yes.
Yes, sir. Thank you very much.
I am on page three of the trust document and we are looking at the top line performance for various trusts. You'll know that the challenge for the month of July which is our focus today were negative 1.1%, relatively in line with the indices,
checks about term financial debt, benchmarks.
Kind of the drivers of that is we didn't get a contribution from the overall equity in the month of July. The returns between equity and fixed income are comparable. The returns are quite close to the benchmark. So we did get the performance and from an asset allocation standpoint, we got the exposure to US, international, emerging markets, equity, right? We also had big contributions from our active managers generally equity and impact of that active management was slightly negative the quarter.
Really nothing to report here in terms
of constraints or not performance
constructive. I also tell you, if we look at our one, three, five, seven, ten year numbers from across the board long term, these returns far exceed the needs of a typical trust, which is generally between 7%. We are doing quite well, nothing material report regarding the trust and at least the big performance of those financial periods in general. I'll move on to financial reconciliation on the following page. We did not have any cash needs identified by the trust.
So as a result, we're seeing various inflection on fees and expenses. Again, the trust in total exited July at roughly $39,000,000
All those in favor, say aye. Aye. Any opposed? The ayes have it. Item three has been mentioned, there's no recommendation for rebalancing.
We make a motion to continue item three to the previous month's agenda, to the following month's agenda. So moved. Councilwoman Ryan, seconded by treasurer husband. All those in favor say aye. Aye.
Opposed and abstentions. And then finally, we have a handout from Sarah with cash flows, we'll take a motion to enter in as consider one or A.
Either one, we're driving you for grant.
Who would write an ounce open with Brian and signify miss Sarah Silveria. All those in favor say aye. Aye. Aye. The opposed.
The ayes have it. Any other business or discussion? Seeing none. John Wilkerman is not here to make
