CapTrust and NEPC tell trustees 2025 returns were strong; advisers identify funds to watch

Advisers from CapTrust and NEPC reviewed 2025 market performance and the University of Maine System retirement plans’ quarterly scorecards, telling trustees the system produced strong returns and that most holdings remain in good standing.

CapTrust’s presenters noted the plan had about $2.2 billion in assets and flagged that approximately 5% of plan assets sit in funds currently 'marked for review.' Mike (CapTrust) said the Vanguard target‑date series remains a solid default option and that target‑date glide paths have narrowed in recent vintages.

CapTrust identified a few funds for discussion: the CREF Socially Responsible Balanced fund (score in the high 70s) was marked for review primarily because screening excludes some large cap names that helped peers in 2025; JPMorgan Equity Income and MFS Mid‑Cap Growth were described as out of favor for stylistic reasons but not recommended for termination. Victory Sycamore (established value) was singled out as a fund for closer monitoring after the announcement that the primary manager will retire in April; advisers offered to provide succession and replacement information to trustees.

NEPC provided portfolio‑level commentary. Matt (NEPC) said some global equity managers had underperformed and recommended replacing Walter Scott (see separate action). Fixed‑income managers such as Newton and PIMCO performed well in recent periods, NEPC said, and IR&M was added in place of a common fund.

Advisers emphasized that the scorecard is one part of a broader due‑diligence process and that being on the 'marked for review' list does not automatically lead to termination; rather it triggers deeper review and discussion with managers. Trustees asked specific follow‑up questions about manager succession planning and the timetable for any potential off‑cycle manager searches.