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Pension fund reaches $143.2 million; Washington Crossing presents investment update and cautious strategy
Summary
Lebanon County’s pension plan balance was reported at $143,238,201 as of Aug. 20; investment managers Washington Crossing described a lower-volatility, quality-focused equity strategy and trustees discussed raising about $3 million into laddered Treasury bills.
Lebanon County pension trustees received a quarterly and year-to-date report on the pension portfolio and heard a presentation from Washington Crossing Advisors.
Washington Crossing representatives, including Chad Morgan Lander (chief investment officer and senior portfolio manager), reviewed performance figures for the period ending June 30 and provided an unaudited year-to-date update through Aug. 20. The second quarter return was reported at 4.82% and the one-year return at 9.7% (through June). The pension plan balance was reported as $143,238,201 as of Aug. 20 and year-to-date performance through Aug. 20 was 6.2% (unaudited).
The portfolio allocation presented showed roughly 65% equities, 29% fixed income and 5% alternatives (REITs), with a small cash/T-bill position described as just under 3%. Washington Crossing described its “Victory” portfolio as an all-cap, lower-volatility, quality-focused approach that favors companies with low leverage, steady earnings and productive asset reinvestment. The manager said the strategy will move to cash if attractive, high-quality opportunities are unavailable rather than remaining fully invested at all times.
Trustees and managers discussed market concentration (about 50% of the S&P 500 market cap coming from roughly 20 stocks), valuation concerns, artificial-intelligence-driven investment themes and Federal Reserve policy signals ahead of the Jackson Hole symposium. Washington Crossing recommended raising about $3,000,000 into laddered Treasury bills to capture near-4% annualized returns for the cash reserves used for monthly pension payments; trustees discussed but did not record a formal vote on that step in the transcript.
The board recognized long-serving staff member Sally for 21 years of service; presenters thanked county officials for the long relationship with the manager.
No formal contract actions were recorded in the meeting; managers will continue to monitor markets and report back.
