Consultant: plan earned $423,000 in quarter; trustees review market rotation away from large-cap tech

The board received the quarterly investment report for the period ending Dec. 31, 2025, during which the consultant said the plan earned $423,000, or about 1.8% for the quarter, and about $3,000,000, or 13.6% for the full year.

The consultant said international markets outperformed U.S. markets in 2025, with developed and emerging markets up roughly 21% to 43% last year, and attributed part of that performance to a weaker U.S. dollar and increased fiscal and defense spending abroad. He described a market rotation away from the largest U.S. technology firms into value sectors and smaller-cap names this year.

Key figures presented: the consultant reported the plan’s total investments at roughly $25.2 million at the end of the period, three-year annualized returns of approximately 13% and 10-year annualized returns near 7.5%. He noted the plan slightly trailed its strategic benchmark for the quarter, driven by active managers with a quality bias that underperformed last year.

Board context: Trustees asked whether stronger international returns should change the plan’s asset allocation; the consultant pointed to the board’s investment policy statement and existing target allocations and said no immediate allocation changes were recommended. The consultant said the plan is slightly overweight U.S. equities and international equities and slightly underweight private real estate, and recommended monitoring but not changing the allocation immediately.

The consultant also walked trustees through sector performance and longer-term trends, including the concentration of returns among a few large-cap names through late 2024 and broader participation after November 3. Trustees received the report and later approved the consultant’s recommendation to accept the quarterly report as presented.