El Paso city employees retirement trust reports $1.103 billion in assets; managers cite strong private‑market performance

Joe Espino, the trust’s treasurer, told the City of El Paso Employees Retirement Trust board on Jan. 31 that the fund held about $1.103 billion in assets available for benefits as of Dec. 31, 2025. The statement shows cash and investments of roughly $1.097 billion, receivables of $3.8 million and a small liability of about $31,000, with year‑to‑date employer and employee contributions of $22.2 million and net investment income of $555.4 million.

Espino said benefits paid to retirees totaled $28.5 million for the period and that operating expenses and refunds reduced but did not offset investment gains, producing a net increase in plan assets of about $46.3 million for the quarter. He and staff also walked the board through the fund’s monthly investment‑income analysis and an annualized projection for FY26 benefits.

Adams Street Partners, the trust’s private‑markets manager, briefed the board on the private‑equity sleeve and said the 2022 global program is fully committed while the 2025 program is about 44% committed. Scott White, a partner, and Matt Autry, also a partner, said the private‑markets portfolio has produced early distributions and cited a 1.3x multiple and a 22% net internal rate of return for certain funds in the 2022 program to date. They told trustees the portfolio is intentionally low‑levered and overweight to sectors they characterize as resilient — technology, health care and select industrials — which they said should help performance in a slower deal environment.

Kellen LLC, the trust’s investment consultant, presented the monthly performance report for December 2025. Alex Browning said December was quiet but highlighted asset rebalancing after the termination of an AllianceBernstein mandate: assets were shifted primarily into a Mellon Equity Index (S&P 500) sleeve and Wellington’s small‑to‑mid cap product to reach the board’s revised equity structure. Browning noted private equity remains overweight relative to policy targets; staff is pacing rebalancing toward fixed income as distributions and capital call timing permit.

Board members asked about liquidity to meet benefit payments and Browning said staff maintains a conservative cash buffer (roughly 1–1.5% of the fund) and continues to manage pacing for private‑market capital calls.

The board did not take new investment allocations at the meeting but received the reports and discussed continued monitoring of private‑market exposure and the effects of recent salary increases on long‑term liabilities.

The next regular meeting agenda will include the quarterly and fourth‑quarter investment reports and any recommended rebalancing actions from staff.