El Paso pension fund posts about 2.5% January gain; board hears rebalance, private-equity pacing

The El Paso City pension trust reported a roughly 2.5% investment return for January — about $25.9 million — and a total trust market value just over $1 billion, an investment consultant told trustees at the board meeting. Alex, the investment consultant from Callan, said the month’s gains were driven by U.S. equities and a handful of active managers, while fixed-income returns lagged.

The consultant told trustees the plan remains within policy tolerance bands but that natural market movement and large recent distributions left the fund temporarily overweight in cash. "January was a really good month. I think it's about 2.5% return, which translates really into $25,920,000," Alex said. He recommended rebalancing as cash flows permit rather than forcing daily trades.

Why this matters: the board’s long-term actuarial discount rate is 7.25%, and trustees said they watch monthly returns as short-term…