Trustees received an investment and market update Tuesday showing the pension fund’s asset allocation remains within the written investment policy and under the plan’s 75% equity cap.

Dwayne Madren, portfolio manager with Capital City Trust, told trustees, “the purpose of the policy review is just to inform you that all the asset classes are within the operating range prescribed by the policy. And, also, we are underneath the 75% equity cap, currently at 70% equity.” He said the manager was holding extra cash because “cash is yielding 4.1%” and that the team had made purchases in early March when equities “were cheap, or cheaper.”

Mitchell Brennan of BCA, the board’s consultant, reviewed recent market drivers and performance. He said the U.S. economy had contracted 0.3% in the first quarter and noted volatility tied to tariff announcements in April. Brennan described the labor market as resilient, citing April unemployment at 4.2% and 77,000 jobs added that month. He also flagged rising delinquencies in consumer credit categories other than student loans and summarized that international markets outperformed U.S. equities year-to-date through mid-May.

The presenters gave quarterly performance details through March 31: calendar-year returns were negative for the first quarter (equities down, cash and high-yield bonds positive), but the five-year annualized equity return was strong—around 14.69% on the equity sleeve—and the plan ranked in the top quartile of public pension peers over several horizons. Brennan and Madren said May’s rally had largely recovered earlier losses and that the board’s fiscal-year-to-date and one-year returns improved when later months were included.

Manager-level notes included relative strength from international equity and a global infrastructure holding; small-cap equities lagged in the quarter (roughly down 9.5%) but had rallied since March 31, the presenters said. The consultants recommended patience for underperforming active international managers (American Funds EuroPacific was discussed) but signaled a willingness to consolidate into index exposure if performance continued to lag.

The board moved to accept the investment report as presented. The motion was made and seconded and recorded with an affirmative voice vote in the meeting transcript.

Trustees asked no substantive follow-up questions during the presentation; the consultants said they would continue quarterly monitoring and provide additional cost estimates and asset-allocation detail at future meetings.