Investment consultant reports $115M market value, outperformance in selected allocations and small-cap underperformance

Sarah Wilson of Marquette Associates presented the retirement fund’s quarterly investment review at the Nov. 18 Lawrence County Retirement Board meeting, telling trustees the fund was in a healthy position and that Marquette made manager changes to address underperformance.

Wilson said the account’s market value as of Sept. 30 was $115,000,000 and that the fund posted a third-quarter return of 5.2%, a dollar gain of $5,700,000. Year to date through Sept. 30 she reported a return of 12.3%, a dollar gain of $12,800,000. Wilson also said the plan has annualized returns of about 8.2% since Marquette’s tenure and that those results have produced a net investment gain in the tens of millions.

On performance drivers, Wilson highlighted that large technology firms and AI-related capital expenditures have materially influenced recent returns, while small-cap managers have struggled in the higher-rate environment. She identified Eaton Vance (the fund’s small-cap manager) as underperforming for the quarter and noted Marquette moved remaining positions from an underperforming strategy into global manager WCM and into a CIT vehicle to reduce fees.

Trustees asked whether the fund remained fully funded. Unidentified Speaker 2 asked, "Are we still fully funded?" and received an affirmative reply. Wilson summarized the investment approach as focused on diversification and monitoring underperforming managers weekly.

Wilson closed by noting peer-county comparisons from the 2025 Pennsylvania county database review and urging continued monitoring of small-cap exposures. The board thanked Wilson and adjourned after routine closing remarks.