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Investment staff reports strong private‑markets distributions and 4.1% Q3 gain for the fund
Summary
Presenters told trustees that private‑markets realizations drove above‑average returns in Q2 and Q3: private equity distributions spiked (post‑Q2 realization returns returned nearly $8M), and the total retirement plan returned 4.1% in Q3, adding roughly $230M in market gains.
Investment staff and external managers briefed the board on private‑markets and third‑quarter performance, saying a combination of realizations and favorable public markets led to a strong quarter for the retirement fund.
Casey of Neuberger Berman described an unusually positive Q2 for private equity driven by realizations and distributions. “In Q2, the distributions for your portfolio were a little over 2,000,000. But post Q2, we had some really nice distributions and distributed back to you all almost $8,000,000,” Casey said, noting one underlying primary investment realized at roughly eight times cost. He reported that Series 1 net multiple rose from 1.83 to 1.91 during the period and explained that Series 2 remains actively investing with a stable multiple.
Colin and the investment staff gave a wider view: the total retirement plan held about $5.9 billion at the end of Q3 and recorded an approximate 4.1% return for the quarter (adding roughly $230 million in dollar terms). The health care trust finished the quarter with roughly $437.9 million and returned about 5.4% for the period, attributed largely to public equity exposure.
Trustees asked detailed questions about allocations and manager watch lists. Staff noted legacy positions (for example, a China‑focused legacy fund) remain on the watch list and that the board has increased co‑investment exposure over recent years to capture fee and return benefits.
No formal action was taken on allocations at this meeting; trustees signaled interest in continuing conversations about risk targets in light of the pension valuation and the plan’s maturity.
