Stifel and Dearborn report positive returns on county pension; managers recommend no allocation changes
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Summary
Stifel Financial and Dearborn Investments presented the quarterly pension report showing multi-quarter gains, an unaudited current balance of about $140.6 million and a year-to-date return near 8%; managers recommended no changes to the target allocation.
Investment managers Stifel Financial and Dearborn Investments presented the Lebanon County pension report for the third quarter (July'September) and gave commissioners an update on more recent market moves.
Brett Holland of Stifel said the fund began the quarter near $141.97 million and recorded a third-quarter return of 3.61%. He noted year-to-date performance of roughly 8.05% through Sept. 30 and that, as of the most recent close, the unaudited portfolio balance was approximately $140.6 million with an unaudited return of about 6.26% year-to-date through yesterday's close. Holland said the portfolio allocation remained roughly 66% equities, 28% fixed income and 5% alternatives, and Stifel was not recommending allocation changes at this time.
Brian Payne of Dearborn Investments described his firm's rising-dividend strategy and said the Dearborn sleeve is intended to produce a growing income stream for pension obligations. "Every company we own has to pay a dividend," Payne said. He noted Dearborn's long-term perspective and said dividend growth provides stability through market cycles.
Commissioners asked no substantive follow-ups. Managers said they will continue reporting quarterly and will advise the county of any material market developments.