Interest rates moved higher because of inflationary concerns due to impact of energy prices. The
impact of energy prices has moved to center stage.
Large cap equities came under pressure, but small caps equities were positive for the quarter.
International markets were not immune to the sell-off underscoring the reliance that the
Eurozone has on imported energy.
Emerging markets were off about 20 basis points due to heavy reliance on Middle Eastern oil.
The AI ecosystem centered around semiconductors and microchips helped mitigate some of the
downside risk.
Real Assets were up 6.7%.
In April there was significant growth led by some AI companies, which helped fuel investor
optimism. A month of recovery bringing S&P up 5.7%, Small Cap up 20% and International
7.5% bringing the year-to-date S&P from negative to 5.7%, Russell small cap up 13% and
International up a healthy 14.5%. This momentum carried over into May.
Putting the volatility into perspective, the fiscal year number at the end of March was 7.2% when
monetized that becomes approximately 2.3 million dollars in gains, which is where it was at the
end of March. Still running a 60/40 portfolio. There is adequate cash for disbursement needs.
The portfolio has a very high-quality fixed income allocation of 40%. There is a very strong
return profile.
Watch Status - William Blair Small Cap Value RB - The strategy was moved to Watch after
numerous changes to the investment team were reported. William Heaphy, lead portfolio
manager since 2010 announced that he will be retiring on June 30, 2026. Gary Merwitz who
joined the team in 2004 and serves as Director of Research and Research Analyst also
announced that he will be retiring in the second half of 2026. Additionally, Josh Overholt, who
joined the team in 2007 as a research analyst departed the firm to pursue an opportunity outside
the investment management industry. These recent changes, retirements of key leaders and the
departure of a senior analyst introduce uncertainty and may impact continuity.
DISCUSSED
RESULT:
IV.
1.
REVIEW AND APPROVAL OF MINUTES
Motion to APPROVE Regular Meeting Minutes from March 17, 2025, as written.
APPROVED AND SO DECLARED
John Rodolico
RESULT:
MOVER:
Sharon Wadecki
SECONDER:
4
Thorne Rodolico Codding Wadecki
AYE
V.
DIRECTOR OF HUMAN RESOURCES UPDATE