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Investment advisers tell Sun City West committee 2025 returns were strong as portfolio funds rec‑center expenses
Summary
CapTrust representatives told the Budget & Finance Committee that the association’s portfolio returned roughly $3.1 million in 2025, that allocations remain within IPS targets, and that a $2.267 million Q4 outflow paid for rec‑center expenditures.
CapTrust advisers presented the association’s investment results to the Sun City West Budget & Finance Committee on Feb. 3, saying the portfolio produced strong returns in 2025 while remaining aligned with the association’s investment policy statement (IPS).
"2025 was definitely a year to be invested," said Carol Romney of CapTrust, noting the S&P 500 finished the year up about 18 percent and that commodities and small‑cap segments also performed well. Romney said the portfolio returned just under $3.1 million for the year, with roughly $521,000 contributed in the final quarter.
The advisers said the portfolio’s asset mix stood near the IPS targets: about 74–75 percent fixed income, roughly 15.6 percent U.S. equities and about 9.5 percent international equities. The group reported a $2.267 million net outflow in the fourth quarter, which staff said was used to cover expenditures for Sun City West recreation centers.
"We look at it quarterly based on weights," said Nathan Ericson of CapTrust, describing the firm’s rebalancing practice and noting that new contributions or withdrawals prompt tactical trades to keep allocations within target ranges.
Advisers highlighted fixed‑income characteristics (a duration near 5.75 percent and an SEC yield around 4.18 percent) and said no single position approaches the 20 percent IPS position limit. They also pointed to a steepening one‑to‑10‑year Treasury curve late in the year and discussed how interest‑rate sensitivity factors into a portfolio that remains heavy in bonds.
Committee members asked whether international returns were driven by currency moves or local performance. Romney replied that developed‑market strength and a weaker dollar both contributed and offered to supply research breaking those drivers out for the fourth quarter.
The presentation concluded with staff and advisers urging trustees to keep the portfolio aligned with objectives and cash‑flow needs and with an invitation to provide more detailed research on specific drivers of 2025 performance. No formal vote or action was required on the presentation.
