Pension funds post double‑digit gains; adviser cites shift to international stocks

Jason Staley of Shutter Downs told the Franklin Park borough council that both borough pension plans posted double‑digit gains in the most recent period and outlined why his firm has shifted allocations.

“For the police plan, we’re up about 14.3%. And for the general employees plan, we were up about 13.6,” Staley said, attributing the performance to international and emerging‑market strategies and an alternative‑equity sleeve that includes gold.

Staley said the firm rebalanced away from an outsized U.S. large‑cap growth position — the companies often dubbed the “Magnificent Seven” — and shifted money into international equities and smaller‑cap domestic stocks. He argued the decline in the U.S. dollar and a rotation of market leadership made non‑U.S. equities relatively attractive.

Shutter Downs also told the council it reduced investment‑management fees for Franklin Park pension accounts “by a little over 20%,” a change the presenter said took effect Jan. 1. The firm emphasized that rebalancing within tax‑exempt pension accounts does not generate the same personal tax consequences that retirees or individual investors might face.

Why it matters: pension returns affect long‑term liabilities and funded ratios for beneficiaries and for municipal budgeting. Council members asked questions about the strategy and about risk management; Staley repeatedly referenced diversification and a longer‑term investment horizon.

The presentation included performance context and a discussion of longer‑term risks such as sustained higher capital expenditures by large tech firms (for example, data‑center builds) that could pressure valuations. Staley said those dynamics reinforced the decision to trim large‑cap growth exposure and redeploy into areas the firm views as offering better expected returns.

The council did not take formal action on the presentation; staff will continue to schedule regular updates from the investment adviser.