Danvers Retirement Board approves modest Investment Policy change after Segal Marco review

Rafik Ghazarian of Segal Marco told the Danvers Retirement Board on Feb. 25 that the system’s total fund composite held a market value of $193,684,433 and posted a net investment change of $5,176,074, a 2.7% return for the period ending Feb. 28, 2026.

"Looking at the February numbers will be a nice start," Ghazarian said, adding that he expected March results to be weaker because "due to the upheaval and war, the prices are going up for everything, and gas and oil are increasing at ridiculous rates. The market is not looking good at all right now." He said the 2.7% increase was preferable to an anticipated 3% loss and a potential deficit of up to $6 million.

Ghazarian reviewed the portfolio’s risk profile, noting that most asset classes the board invests in have standard deviations below 18 percent, while Emerging Market Equity and Private Equity were over 20 percent. He described cash, fixed income and hedge funds as the lowest-risk holdings.

As part of an annual asset-allocation review, Segal Marco presented a set of small changes labeled "Proposal 1." The firm recommended increasing International Equity slightly (from 9% to 10%) and similarly increasing Core Fixed Income, while reducing Real Estate Core from 8% to 5% and raising Real Estate Value-Added from 2% to 3%. Ghazarian said those adjustments would preserve a similar overall asset mix while modestly shifting risk exposure.

The board voted to adopt the change to its Investment Policy Statement consistent with the recommendations. Rodney Conley made the motion; Vincent Malgeri seconded. The motion carried unanimously.

Administrators reported no need to move cash this month. Ghazarian also asked the board whether it would consider starting meetings at 9:30 a.m. instead of 10:00; the board asked staff to place that question on the May agenda for a formal vote.

The board adjourned and set its next meeting for April 29, 2026.