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Palatka police pension board hears positive fund performance; managers emphasize cash, fixed‑income positioning
Summary
Trustees were told Feb. 24 that the police officers retirement plan returned positive results in the quarter and year, with managers citing heavy reallocations toward cash and mortgage‑backed agency securities while noting equity valuations and geopolitical risks.
The City of Palatka Police Officers Retirement Plan received multiple investment reports Feb. 24, 2026, showing positive recent returns and a portfolio tilted toward equities plus a temporary increase in cash, trustees were told.
Dwayne Madron of Capital City Trust said the plan’s asset allocation remains inside the ranges set by the investment policy statement but that the manager is “holding a little bit more cash than normal as equities get expensive.” He noted equity and bond returns for the fourth quarter were positive and warned of potential headwinds from elevated AI‑related capital spending and geopolitical tensions.
David Siegel, fixed‑income portfolio manager at Sawgrass Asset Management, described fixed‑income performance and positioning for the plan’s bond sleeve. Siegel said the portfolio’s yield to maturity was about 4.6% at year‑end and that the fixed‑income allocation—focused on investment‑grade corporates, U.S. Treasuries and federal agencies—has produced strong one‑year and three‑year returns. “We invest primarily in investment grade… these are very high quality,” Siegel said, noting mortgage‑backed agency securities have been a major driver of recent returns.
Mitchell Brennan of BCA (the plan’s broader consultant) reviewed full‑year numbers and context, saying the plan earned roughly $289,000 (about 1.9%) in the quarter and finished 2025 with approximately $15,185,720 in total assets. Brennan highlighted that international and small/mid‑cap markets outperformed in 2025 and that the plan’s diversified allocation helped performance.
Trustees asked no substantive follow‑up questions and approved the managers’ reports by voice vote. No changes to the plan’s strategic targets were recommended at the meeting; managers said they were ready to rebalance into opportunities should market volatility present them.
Next steps: managers will continue monitoring markets and report back at the board’s next regular meeting.
