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RBC: Borough police and staff pension portfolios posted double-digit gains in Q2
Summary
RBC told the finance committee that the police pension rose about 9.8% in the second quarter, pushing the police portfolio’s market value from about $56.4 million to $61.9 million; the firm also reported gains for the staff (nonuniforms) plan and said portfolios remain within policy ranges.
Bruce Biesecker, senior vice president at RBC Wealth Management, told the finance committee the borough’s pension portfolios posted strong second-quarter returns and are operating within their approved investment policy.
Biesecker said the police pension was up 9.8% in the second quarter and the portfolio’s market value grew from $56.4 million to $61.9 million. He noted the portfolio has outperformed its benchmark year to date and that, over the period since RBC began managing the accounts in February 2023, the average return is about 12.7%, slightly ahead of the benchmark.
The presenter described the funds’ asset allocation target as 50% U.S. equity, 35% fixed income and 15% international equity and said current allocations are close to those targets. He summarized manager performance: the U.S. equity index was up roughly 15.7% for the quarter; international active managers returned a little over 12% for the quarter and were ahead year to date; fixed-income managers produced modest positive returns as rising interest rates increased income.
A committee member asked whether the plans should add international bonds. Biesecker said RBC has primarily reviewed international equity and that they have not implemented international bond strategies for clients recently; he cited currency-movement risk and offered to follow up with more analysis.
An RBC representative later told the committee that the combined assets under management were about $63.5 million when RBC took over on Jan. 31, 2023, and had grown to roughly $91.7 million by June 30, and that fees remained on a flat-fee schedule rather than the previous structure that would have raised fees by an estimated 45%.
No formal investment-policy changes or votes were recorded during the presentation; the committee asked staff to follow up on the question of international bonds.
Ending: The presentation concluded with no immediate policy changes; staff and RBC will provide follow-up analysis on international bond options and any recommended portfolio adjustments.
