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Board approves first fee increase in 21 years; quarterly report shows strong returns and $11.43M year‑end balance
Summary
Trustees approved a proposed fee schedule increase that took effect Jan. 1 and reviewed the quarter- and fiscal-year investment results. The investment consultant reported a fiscal-year return of about 19.82% and a year-end market value of $11,427,954.42; managers’ fees and basis-point examples were discussed.
The Firefighter Pension Board on Jan. 14 voted to adopt a new fee schedule proposed by the plan’s administrator—the first fee increase in 21 years—and reviewed the quarterly investment report for the period ending Sept. 30, 2024.
Jeremy (investment consultant) and Jermaine briefed trustees on the fee change, which was presented as a percentage-of-assets schedule and took effect Jan. 1. Using Sept. 30 asset figures as an example, the consultant showed that under the old schedule a typical quarterly fee would have been about $5,035; under the new schedule that figure would have been about $6,022. The board moved to approve the new fee structure as proposed and approved the motion by voice vote.
The investment report (data as of Sept. 30) shows a beginning balance of roughly $10.6 million, $207,000 in contributions for the period, $568,000 in investment earnings for the quarter, distributions of about $22,500 and expenses around $10,800, leaving an ending balance of $11,427,954.42. The consultant reported fiscal‑year‑to‑date returns of 19.82% and a strong calendar of recent performance: equity small/mid/large and international equities showed notable gains; fixed income also had a strong year; the real estate allocation was a detractor for the period (down about 3.68% for the quarter).
Trustees discussed manager fees and total expenses. The consultant provided manager-fee examples reported in the packet: Atlanta Capital (bond manager) shown at about 15 basis points, another bond manager example at 52 basis points, a large-cap blend approximated at 27 basis points, a small/mid cap manager example at 45 basis points, international managers averaging about 43 basis points, and a Morgan Stanley real‑estate allocation at about 124 basis points. The consultant explained the quarterly administrative fee shown to the board (about 14.5 basis points as a rough representation) and noted returns are reported net of fees.
After discussion, trustees approved the new fee schedule as proposed. The consultant said full December 31 data would be available several weeks after quarter end and that the firm would provide the next quarterly package when compiled.
