Montgomery County retirement board hears CFO; members urged to ‘stay the course’ as markets show uncertainty

Montgomery County — The Montgomery County Employees Retirement Board approved its March 6, 2025 minutes and spent the bulk of its May 1 meeting hearing a detailed retirement-plan and market update from the board’s chief financial officer.

The CFO told the board the plan’s report shows headline assets and noted the report is "roughly $31,000,000 annualized." He summarized first-quarter results and said diversification across equities, bonds and alternative strategies helped stabilize returns. The CFO said international and emerging-market exposure provided a benefit as a softer dollar boosted translated returns.

Why it matters: the board oversees retirement assets for county employees and its allocation decisions affect long-term funding and payout stability. The CFO framed the briefing as a check on portfolio positioning amid ongoing macroeconomic uncertainty and upcoming policy signals from the Federal Reserve.

In the presentation the CFO reviewed calendar-year and rolling returns, reporting the plan had double-digit calendar returns in prior years ("11% return" last year and "15%" the year before) and cited a one-year figure of about "7.5%" as reported. He described contributions by asset class — U.S. equity detracted in part, global equity and fixed income added positive returns, and active management and dynamic allocation provided downside protection relative to a benchmark.

On short-term performance the CFO said April data prepared that morning showed positive results for the month; the transcript records a figure phrased as "positive 235%," which appears garbled in the record and is not presented as a verified percentage in this report. The CFO emphasized uncertainty as the dominant market driver and pointed to corporate guidance, consumer behavior and possible central-bank moves as key risks.

Giving guidance to trustees, the CFO said: "Don't make changes. Don't freak out. Don't try to chase the market." He described active managers as monitoring opportunities and making selective trades — some managers bought into positions while others remained defensive — and said staff would return with further detail at the June meeting.

Procedural business: earlier in the session the board approved the March 6, 2025 meeting minutes (motion recorded and approved by recorded 'Aye' votes) and, with no further business, the chair moved to adjourn. Commissioner Di Bella seconded the adjournment and the board recorded the motion as carried.

What’s next: the CFO and staff said they will continue monitoring active managers and review tactical opportunities at the June meeting; no formal changes to the investment policy or asset allocation were proposed at this session.