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Danvers Retirement Board approves $5.5 million rebalancing after strong 2025 gains
Summary
At its Jan. 28 meeting the Danvers Retirement Board approved a set of rebalancing moves recommended by Segal Marco after a 13.8% year-to-date gain in 2025, including transfers between PRIT funds, a reduction of Kayne Anderson exposure and a cash draw from Eagle Management.
The Danvers Retirement Board on Jan. 28 unanimously approved three investment moves recommended by Segal Marco after a presentation showing a Net Investment Change of $23,318,976 for the year, a 13.8% year-to-date gain.
Rafik Ghazarian, Segal Marco investment manager, told the board the system outpaced PRIT’s reported ~12% return and said the board’s US equity performance trails some peers. Ghazarian recommended a $2,000,000 transfer from PRIT’s Hedge Fund to PRIT’s International Equity to correct an overweight/underweight disparity; he told the board PRIT rules allow such draws only on quarter boundaries, so the transfer could not occur until April 1. The motion was moved by Rodney Conley, seconded by Heather Russo and approved unanimously.
Ghazarian also proposed reducing the plan’s allocation to Kayne Anderson by $2,000,000 and moving those dollars into the Rhumbline S&P 600 small-cap index. He described the change as a risk-management step: "they are both small caps and the transfer will reduce our risk with Kayne," and cautioned he did not want to "empty the tank" on Kayne because "in the past, they have proven they can come back profitable." That motion (moved by Rodney Conley; seconded by Mike Hagan) passed unanimously.
To meet short-term liquidity needs, the board approved moving $1,500,000 from Eagle Management into the plan cash account. That transfer was moved by Rodney Conley, seconded by Vincent Malgeri and approved unanimously.
Board members asked that staff and Segal Marco continue monitoring manager performance and reconsider any permanent changes at future meetings. Ghazarian said his team will study domestic equity consolidation to identify potential fee savings and risk reductions and hoped to report back by the March meeting.
The board reviewed itemized January purchases and sales for manager accounts during the meeting; those trade details were reviewed and accepted by unanimous vote.
