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Bedford County retirement fund rebounds to $15.1 million; consultant says $2.4 million contribution would be needed if markets stay flat
Summary
Cornerstone reported the Bedford County retirement portfolio rose to $15,102,792 by quarter end and that maintaining current benefit levels with a flat market would require roughly $2.4 million in contributions next year; the board asked Cornerstone for follow-up materials and actuarial options.
J.P. Cavaliere, senior consultant with Cornerstone, told the Bedford County Retirement Board on May 29 that the fund’s market value rebounded to $15,102,792 by the end of the quarter after earlier declines and that diversification across international equities and fixed income helped offset U.S. stock volatility.
Cavaliere said non-U.S. stocks led performance, citing an MSCI gain of about 6.9%, and that fixed income produced positive returns (Bloomberg AG up roughly 3.18%), which together moderated losses from U.S. growth benchmarks. He summarized the quarter’s cash flows as a starting market value of about $4.6 million, income of $60,000, contributions just under $400,000 and benefit payments of about $931,000.
On long-term metrics, Cavaliere reported the plan is in the top third relative to its blended benchmark and peer group, with a three-year Sharpe ratio of 0.55, upside capture of about 105% and downside capture of about 96.5%. He described macro risks the board should consider, including recent tariff announcements, pending congressional fiscal legislation and potential Federal Reserve policy moves.
When Commissioner Mike Stiles asked how much the county would need to contribute next year if the portfolio remained flat, Cavaliere said maintaining the current level would require a contribution of approximately $2.4 million. The board recorded follow-up tasks: Cornerstone will send hard-copy portfolio booklets and provide the requested projections and supporting materials.
The board adjourned at 11:11 a.m.; the next meeting date was to be determined.
