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Investment advisor says Dunmore pension fund remains conservatively positioned amid market volatility
Summary
Morgan Stanley adviser Ralph Colo told the Pension Board the fund is about 50% in equities (roughly one-third international), about 12% in cash and returned about 2% year-to-date through February; he recommended sticking to the investment policy statement and deploying cash selectively.
Ralph Colo of Morgan Stanley told the Dunmore Pension Board on March 11 that the borough’s pension portfolio is conservatively allocated and weathered recent market volatility. He said the fund’s allocation is roughly 50% equities (about one‑third of that in international equities), with approximately 12% in cash and the remainder split between fixed income and alternatives.
Colo said international equities had performed strongly year‑to‑date, up about 8%, and reported a net return for the Borough of about 2% through February. He also said the portfolio produces roughly $500,000 in investment income annually (about a 3% yield). Given the market swings, Colo recommended adhering to the fund’s investment policy statement and noted that some cash could be deployed into equities if markets sell off further.
Board members asked whether contributions were included in reported returns and how the portfolio’s equity holdings were allocated; Colo clarified that reported investment income and returns are separate from ongoing contributions and said the equity sleeve focuses on large-cap, blue-chip names rather than concentrated high‑growth technology positions.
The board did not take investment action during the meeting and will continue to monitor market conditions and actuarial guidance.
