Quarterly performance review: board hears Greystone report, votes to move short-term fixed income to Genter Capital; private-credit education deferred

During its Sept. 25 meeting the General Employees Pension Plan Board heard the quarter‑end performance review from consultants and managers, discussed market drivers and alternatives, and authorized a change in the fixed-income mandate.

Scott (investment consultant) led a review of the pension portfolio’s quarterly and 12‑month returns. He noted the plan’s one‑year return exceeded its 6.2% target and reported the portfolio was at an all‑time high market value. The consultant and trustees discussed market drivers — including tariff talk and recent volatile moves that favored speculative, high‑beta names in technology and mid-cap growth — and remarked that different sectors led performance in consecutive quarters.

Using that context, trustees considered an intermediate fixed‑income manager search. Board staff and the consultant presented four intermediate candidates and noted that the current short‑term manager (Segal Bryant & Hamilton) had a current short‑term fee and could continue but that the board could move to an intermediate mandate. Staff reported Segal Bryant would honor the board’s existing 15‑basis‑point fee for an intermediate mandate because the board is an existing client, but Genter Capital’s quoted fee for the proposed mandate was 10 basis points.

Treasurer Strickland moved and Vice Chair Nicholas seconded a motion to move the board’s short‑term fixed‑income allocation into an intermediate mandate with Genter Capital, subject to contract negotiation. The motion passed 5–1; a trustee stated opposition on the record but the meeting record did not name an opposing vote. The motion was recorded as subject to negotiation of terms.

The consultant also gave trustees an introductory education about private credit and private equity — including the trade-offs of liquidity, fee structures (committed vs. called capital), secondary markets and potential allocation mixes — and showed model portfolio mixes that replaced portions of public real estate and equities with private credit or private equity. Trustees requested more education before any allocation change and asked staff to invite managers for more detailed presentations; the board scheduled follow-up discussion at a future meeting.

No further procurement votes were finalized at the meeting; staff will proceed to negotiate contract terms consistent with the board motion and will return final documents for board review.