Callan tells Mendocino County retirement board expected 10-year returns lower but bonds offer stronger support

Callan, the retirement system’s investment consultant, presented updated 10‑year capital market projections to the Mendocino County Employees Retirement Association (MCERA) board on Jan. 15, 2025. John Pironi, described in the packet as “senior vice president, capital market expectations,” and Callan panelist Claire reviewed outlooks for equities, fixed income, real estate and alternatives and answered trustees’ questions.

Callan’s core message was that the U.S. economy appears healthy but that high valuations have trimmed expectations for equity returns. “Calhoun views the…the US economy is healthy,” Pironi said during the presentation, and Callan reduced its equity return assumptions modestly compared with last year while keeping a 10‑year inflation forecast near 2.5 percent.

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