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Segal reports March pullback in retirement portfolio; board accepts monthly and trust reports
Summary
Segal consultants told the Board of Investment Commissioners that the retirement system experienced a March sell-off with quarter-to-date losses driven by equity declines and inflation-linked bond moves; the board accepted the monthly and trust reports and continued a separate item to next month.
The Board of Investment Commissioners heard a market update from Segal consultants who said the employee retirement system posted a notable pullback in March and a negative quarterly return.
Glenn Bricken of Segal, introduced by meeting leadership, opened the presentation and said the report covered activity through March 31, 2026. He told the board the S&P 500 “lost 5% of its value” during the March sell-off and noted a month return recorded as -3.13%; he added that equities subsequently recovered some ground the following week. Bricken said the retirement-system portfolio had “a negative 4.5% return” for the quarter, a decline the consultant described as a significant pullback though not yet a full market correction.
The consultants linked the volatility to a mix of geopolitical events and inflation concerns that pushed bond yields higher and reduced bond prices, while stronger-than-expected corporate profits for the first quarter of 2026 supported a partial rebound. Bricken also flagged underperformance by a small-cap manager and the loss of a partner (referred to in the presentation as “Eco”) as contributors to weaker results in portions of the equity sleeve; he said Segal’s review of manager performance and hedge-fund positions is ongoing.
Peter Solomon of Segal addressed cash and liquidity, reporting that cash balances and payroll-related cash flows were “in line with the targets” and that no immediate liquidity action was required. The consultants summarized allocation metrics: public equity near a 68% target and fixed income near a 22.8% allocation, with the fixed-income sleeve producing modest positive returns in the period reviewed.
On board business, members moved to accept the monthly retirement-system report (item one); the motion passed by voice vote. The board then heard the special notes on the three trust funds (item two). Segal reported aggregate market value for the trusts near $72–73 million and recommended no rebalancing or cash changes at this time; the board accepted that report by voice vote and voted to continue item three to next month’s agenda.
The board also accepted a handout from Commissioner Doria titled “five year time system cash flows 2016-2026” into the record as Exhibit 1. A motion to adjourn, moved by Commissioner Winkleman and seconded by the chair, carried and the meeting concluded.
The transcript records voice votes and motions but does not include roll-call tallies or named movers for several motions; where the transcript omitted an individual mover or vote count the article reports the outcome as stated in the meeting record.
