The Olivette Pension Board meeting held on May 2, 2024, focused on the financial performance and management of the city's pension fund. Key discussions included the fund's market value, investment strategies, and performance metrics for various asset classes.

The meeting revealed that the pension fund's beginning market value was slightly over $202 million, with significant cash flows resulting from benefits paid and investment activities. The board noted an increase in trading activity during the recent period, leading to larger-than-normal financial figures. Changes were made to the investment portfolio, including adjustments to mid-cap and small-cap indices, aimed at simplifying the fund's structure.

Performance reports indicated a positive trend for the first quarter of 2024, with the fund up approximately 4%, outperforming its composite benchmark of 3.9%. Fixed income investments also showed gains, with a 1% increase for March. However, the board acknowledged challenges in the real estate sector, where principal real estate investments experienced a decline.

The discussion also touched on private equity returns, which have been muted in recent years, and the impact of higher interest rates on valuations. Despite these challenges, cash holdings yielded a return of 5.1% over the past year, benefiting from the current interest rate environment.

In terms of fees, the board reviewed the annual costs associated with investment management, totaling approximately $133,611, which aligns with industry standards. The meeting concluded with an invitation for questions, emphasizing the board's commitment to transparency and effective management of the pension fund.

Overall, the meeting underscored the importance of strategic adjustments in investment management to navigate current market conditions and ensure the long-term health of the pension fund.