Investment advisor: pension and OPEB returns strong through September, Q4 pullback narrows gains

Chris Cashmark, the town’s investment advisor, told the Board of Finance on Jan. 21 that the town’s pension and OPEB portfolios produced “pretty good” capital‑market outcomes through September but experienced a pullback in the fourth quarter that trimmed some earlier gains.

Cashmark said fixed‑income returns fell in Q4 — “Bonds actually in the third fourth quarter alone…were down about 3%” — and global equities stepped back about 1%. He told the board the town’s 6.5% long‑term return assumption for its pension plans remains consistent with statewide practice and “we don’t think there’s any issues with the 6 and a half percent number.” Funded ratios across the town’s three plans were described as in the mid‑70s.

Why it matters: return assumptions and funded status drive actuarial contributions and budgeting for the town and…