Mandi Dyal

The meeting focused on the review of stress test results for the quarter ending March 31, 2026, noting a slight decrease in the net asset value due to geopolitical tensions affecting money market rates. The group evaluated the portfolio performance against various hypothetical events, including interest rate fluctuations, credit events, and spread widening in specific sectors. Additionally, a compliance recap for the quarter was provided, confirming that no new exceptions, open issues, or affected securities were reported.

The meeting will cover a financial market update and a presentation regarding the draft claims-paying capacity estimates, followed by a formal vote on these estimates. Additionally, the Chief Operating Officer will provide an update on hurricane season loss reimbursements, the financial status of the fund, and recent activities. The session will also include a review of the schedule and agenda for upcoming meetings.

The meeting focused on reviewing stress test results for the quarter ended December 31, 2025. Key findings included the removal of the Travel and Leisure sector from the credit event stress test due to recovery, and an adjustment of spreads for the Chemical sector from +50 basis points to +25 basis points, with the Auto sector stressed at +25 basis points and the Banking sector at +50 basis points. The portfolio was tested against hypothetical events including interest rate increases, credit events, spread widening, and a combination thereof. The compliance recap indicated no new or open exceptions were reported for the quarter, and no Affected Securities were identified. Additionally, the Adviser determined that the fund is structured to withstand reasonably likely events over the next 12 months without failing liquidity or minimizing principal volatility.

The meeting of the State Board of Administration addressed several critical fiscal items. Key actions included the approval of fiscal sufficiency for State of Florida, Full Faith and Credit, State Board of Education Public Education Capital Outlay Refunding Bonds, Series (to be determined), totaling an aggregate amount not exceeding $530,000,000, and for Florida Department of Transportation Turnpike Revenue Refunding Bonds, Series (to be determined), not exceeding $95,000,000. The Board also requested approval for a draft letter affirming the review and approval of the third quarter 2025 Florida PRIME summary reports to the Joint Legislative Auditing Committee. Further discussions involved the request for approval of the SBA Quarterly Report required by the Protecting Florida's Investments Act (PFIA) concerning scrutinized companies in various countries. Additionally, the Board considered approving the proposed rule for Florida Hurricane Catastrophe Fund Rule 19-8.029 concerning insurer reporting requirements, appointments, and standing quarterly reports, including Major Mandates Investment Performance Reports for various funds such as the Florida Retirement System Pension Plan and Florida PRIME.

The agenda for the State Board of Administration meeting included several required approvals and reports. Key items requiring action were the approval of a draft letter to the Joint Legislative Auditing Committee affirming review and approval of the monthly Florida PRIME summary reports for the second quarter of 2025, and the approval of the SBA Quarterly Report mandated by the Protecting Florida's Investments Act (PFIA), detailing scrutinized companies related to Sudan, Iran, Anti-BDS, Northern Ireland, Cuba, Syria, and Venezuela. The Board also requested approval to file a Notice of Proposed Rule for the Florida Hurricane Catastrophe Fund Rule 19-8.010 concerning reimbursement contracts. Furthermore, the Board sought annual approval for changes to the Charter of the Audit Committee, which was last approved in September 2024. Finally, the meeting included the mandated annual evaluation and reappointment of the Executive Director and the presentation of quarterly reports covering investment performance for various funds, including the Florida Retirement System Pension Plan, Florida PRIME, and the Florida Hurricane Catastrophe Fund.