Fayetteville police pension: advisers report flat first quarter after strong 2024, warn of recent market volatility

MAI Capital Management, the pension fund’s investment adviser, told the Fayetteville Police Pension and Relief Fund Board of Trustees on April 17 that the plan’s portfolio finished 2024 with a gain just under 11% and that performance through the first quarter of 2025 was essentially flat.

“Portfolio was up a little north of 10%, just under 11%,” said Russ, MAI Capital representative. He said stocks and bonds were both strong in 2024 and that the firm remains close to the board’s target asset allocation, historically managed near a 60% equity / 40% fixed-income mix. Russ said MAI had deployed some assets into money-market instruments and short-term CDs to lock in higher short-term rates.

MAI provided an updated appraisal showing recent market turmoil had reduced the plan’s market value relative to year-end. “Total portfolio since the end of the year is down about 4%,” Russ said, attributing the move to a sharp sell-off in equities over the prior two to three weeks and changes in long- and short-term rates. MAI distributed a one-page portfolio history and a short guide to bear markets to trustees.

Betty, MAI Capital representative, reiterated the firm’s long-term perspective, noting that over the multi-year relationship with the plan (dating to 2014) equities have averaged “just under 10%,” consistent with long-run stock returns. MAI noted that fixed-income returns have been lower over the same stretch—roughly 2% in recent years—because of the extended period of low interest rates following the financial crisis.

Board members asked for projections for technology stocks and for how tariffs or trade policy might affect holdings. Russ said the portfolio is relatively defensive within its equity sleeve, with “a lot of value stocks, a lot of stocks that pay dividends,” and that management seeks holdings that historically have been less volatile than the broad market. He cautioned that tariffs and policy shocks can cause near-term demand shocks and volatility but said portfolio managers expect companies to adapt in time.

MAI emphasized that it had not recommended dramatic rebalancing, saying the plan’s structure is designed to withstand cycles and that long-term returns are the key objective. The firm offered to stay for the remainder of the meeting to answer additional questions; trustees thanked MAI for the presentation and raised no formal motions tied to the report.

Trustees were also reminded that MAI’s appraisal is a snapshot and that a full actuarial or administrative review would come from other providers if the board requests it.