Adviser recommends, and trustees approve, rebalancing to reduce equity exposure; private‑credit allocation monitored

TJ Lowe, the boards’ investment adviser, presented the quarterly investment report on May 28 and recommended a modest de‑risking rebalance after a strong market run. Lowe explained the quarter’s volatility—rotation from growth to value, energy strength after oil price moves, and temporary weakness in some AI‑related growth names—and showed the portfolios were slightly overweight large‑cap equity versus policy targets.

For the Police plan the adviser recommended roughly $700,000 of reallocations (pulling from large‑cap value and growth exposures and increasing fixed income and cash) to bring the plan closer to its 33% large‑cap target. For the General plan the adviser proposed reallocations (adjusted for a scheduled $1.5 million distribution to pay benefits) that would also move allocations toward targets. Lowe said the trades can settle within one to two business days and described the moves as “taking a little bit of risk off the table and getting us back to our long‑term targets.”

Trustees also discussed recent additions to alternatives (private credit and private equity light) and headline risk in private credit (news about gating of redemptions at some large managers). Lowe said private credit exposure in these plans is small (~2%) and the firm will continue to monitor liquidity and marking practices.

Both the police and general‑employee trustees voted to accept the adviser’s recommended reallocations and authorized implementation of the trades.

Staff will instruct managers to execute the rebalances and report results at the next scheduled meeting.