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Investment manager reports pension fund is now north of $600 million; Q1 downswing offset by diversification
Summary
Lee Martin of Marketing Associates told York County commissioners on July 16 that the county pension fund is “north of 600,000,000,” and that diversification into higher‑quality equities, real estate, infrastructure and private markets helped the fund outperform its policy benchmark during a weak quarter.
Lee Martin, managing director at Marketing Associates, gave the York County Board of Commissioners a quarterly investment update on July 16 saying the pension fund has climbed “north of 600,000,000” and that recent diversification helped limit losses in a down market.
Martin said the fund finished the first quarter ahead of its policy index over that period and “you're about 100 basis points ahead of your benchmark in that down market period,” attributing the relative performance to allocations toward higher‑quality equities, real estate, infrastructure and private‑market investments. He described the fund’s assumed actuarial rate of return as 6.8 percent and said five‑year average returns helped place the fund near the top quartile of comparable defined‑benefit plans.
On the details, Martin said first‑quarter U.S. stocks were down and that international stocks and certain defensive sectors outperformed; he told the board that the fund’s alternatives and private‑market allocations have been “very accretive.” He also summarized the county’s OPEB pool, saying the OPEB fund had posted strong year‑to‑date gains and was “up about 8% year to date” as of the second‑quarter update Martin presented verbally.
Martin noted operational items and a data correction discussed with the controller’s office: a reported drop in participation in the defined contribution plan was due to terminated employees being included in the initial figure; the controller’s office is correcting the participation count for the next quarter. He also said the county’s 457 and DC plan participants rank favorably in national comparisons and that participant advisory services are used by roughly a quarter of participants.
Discussion vs. decision: this item was an informational investment report; there was no formal board action recorded in the transcript tied to Martin’s presentation. The update included performance metrics, allocations, and operational notes that county staff and the board can use for future policy or actuarial discussions.
What’s next: staff and the investment consultant will continue monitoring market performance and alternatives pricing; Martin said final pricing of alternatives will be incorporated when full second‑quarter statements from recordkeepers are available.
