LOSAP trustees accept amended Q4 investment report, redirect $50,000 to Fidelity Total Market Index Fund

St. Mary's County LOSAP trustees accepted a quarter‑4 investment performance report from Marquette and approved a motion to amend the recommended rebalancing by directing $50,000 of the trust's contribution into the Fidelity Total Market Index Fund instead of the Baird aggregate bond fund.

Marquette representative Wayne presented the performance deck and told trustees the trust's market value at year end was about $18,400,000 and that the fund had decreased by about $148,000 over the quarter after cash flows and investment changes. Wayne said the quarter's return for the trust was roughly negative 2 percent, slightly ahead of the policy benchmark but below peer medians, and walked the group through drivers including U.S. economic growth, inflation signals, and rising intermediate and long‑term yields that pressured fixed income prices.

The presentation noted U.S. equities posted a small gain in the quarter while developed non‑U.S. and emerging market equities were negative, a pattern Marquette attributed in part to dollar strength. Wayne also highlighted that short‑term TIPS and active corporate bond positions outperformed broader investment‑grade bonds during the period.

Trustees discussed the portfolio mix, including a roughly 2:1 U.S. to non‑U.S. equity split and a non‑U.S. allocation described in the presentation as about 20 percent (15 percent developed non‑U.S. and 5 percent emerging markets). Wayne said all asset classes were within the board‑approved investment policy ranges and noted a $250,000 quarterly contribution was on hand for investment.

After discussion, John Walters moved to accept the report as amended, directing $50,000 of the current contribution to the Fidelity Total Market Index Fund instead of the Baird Aggregate Bond Fund; Scott Austro seconded. The board approved the motion by voice vote; the chair recorded the motion as carried.

Trustees asked staff and Marquette to prepare more detailed peer comparisons and an April follow‑up on U.S. versus non‑U.S. allocation, currency effects, and the board's target U.S/non‑U.S ratio. Marquette said it would return with visual analyses showing U.S. performance, international performance and the trade‑weighted dollar trends to inform any future allocation changes.