Punta Gorda pension board raises equity target, trims risky bond positions and taps a new core-plus manager

The City of Punta Gorda General Employees Retirement System board on Thursday approved a shift in its investment policy and portfolio that raises the plan’s exposure to equities and reduces reliance on volatile fixed‑income strategies.

The board voted to change the investment policy target for domestic equity to 40% and the fixed‑income composite to 35%, increasing total equity exposure to roughly 55%. Trustees approved the amendment by voice vote after hearing a recommendation from the plan’s investment consultant, Jack of Mariner Institutional.

Jack told trustees the change reflects the plan’s new status as an open plan and the longer time horizon that allows a modest increase in equity weighting. "I think 55 is a good point to go to," he said, arguing that a gradual move toward a higher equity target is appropriate now that new employees are adding to the plan.

Jack also recommended removing dedicated positions the board holds in a high‑yield fund and a floating‑rate fund and reallocating proceeds into a core‑plus manager. "I would take all of the money from the high yield and floating rate funds. Now, I would take $5,000,000 from Garcia Hamilton and put it in the very core plus," Jack said during the presentation of candidate managers, citing fee and tracking differences among Baird, JPMorgan and Vanguard institutional options.

Trustees debated whether to split the new allocation among one or two managers; several favored keeping a portion with Garcia Hamilton while adding a second, more stable manager. The board moved, seconded and approved a package of motions to adopt the new targets and to authorize the consultant to sell the two small holdings, request Garcia Hamilton to liquidate $5 million, and reallocate the proceeds to the selected core‑plus vehicle. Jack said the rebalancing and clean‑up of holdings will be completed and reported at the next quarterly meeting.

Why it matters: The changes reduce the plan’s concentration in strategies that seek to anticipate short‑term interest‑rate moves and instead diversify fixed‑income exposure toward more predictable core and core‑plus approaches. That decision affects how the plan will pursue income and volatility control and will alter manager oversight and fee profiles going forward.

The board also agreed to incorporate a statutory clause in the investment policy that mirrors state guidance on certain contract restrictions, and to file the revised investment policy statement in accordance with statutory timelines. The change takes effect after standard filing procedures.