Financial adviser: pension portfolios near all‑time highs despite small first‑quarter decline

Flynn, the board’s financial adviser, framed the investment environment on May 7 as uncertain but ultimately positive for the pension plans. "There’s a lot of uncertainty ... but the markets continue to just go higher and higher. So remain invested," he said, urging a long‑term approach.

Flynn outlined recent market moves and drivers: geopolitical disruptions in the Strait of Hormuz and higher oil prices led to a March selloff, but a strong rebound in April pushed U.S. indices to new highs. He said the S&P‑500 was down roughly 5% in the first quarter but recovered sharply in April (he cited a roughly 10% April gain for the S&P‑500 and near 15% for emerging markets), and that current Fed rate‑cut expectations had shifted.

On plan performance, Flynn reported the police plan had a market value of about $16.7 million and the nonuniform plan about $15.1 million. He said the police plan’s equity target is 65% and the nonuniform plan’s equity target is 60%, explaining that differences in allocation drive relative performance when equities swing. He also noted recent three‑month and quarter figures: a small Q1 decrease for both plans (police down 0.77%, nonuniform down 0.66%) and that managers had shown downside protection compared with policy indexes.

Flynn recommended continuing the current manager line‑up and emphasized manager selection that protects on the downside as an important part of the governance approach. He said the printed April reports show year‑to‑date returns of about 5% and that both plans are at or near all‑time highs.

Board members did not make portfolio allocation changes during the meeting; Flynn said a full written report and detailed tables were provided in the meeting packet.