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Mariner reports strong quarter for Cocoa Beach pensions, flags Brandywine concerns
Summary
Mariner told the boards both pension plans were up roughly 9% in the quarter and about 9.5% fiscal-year-to-date, with market-value gains of roughly $1.6M (fire) and $1.4M (police); consultants noted Brandywine's recent underperformance and recommended review.
Mariner representatives gave a quarterly performance update Aug. 4, reporting that both Cocoa Beach pension plans produced very strong results for the quarter and fiscal year to date.
James Reno, senior institutional adviser at Mariner, said the police plan was up about 9% for the quarter and the fire plan about 9.1%, with fiscal-year-to-date returns near 9.5%. He reported that the fire plan's market value rose to approximately $23.2 million (about $1.6 million higher for the quarter, after $300,000 in net distributions and $1.9 million in investment gains) and the police plan rose to roughly $22.2 million (about $1.4 million higher, after $400,000 in net distributions and $1.8 million in investment earnings).
Reno and Carrie highlighted allocation positioning and asset-class drivers, noting strong performance from managers such as Touchstone and certain Vanguard strategies and headwinds from real estate and some large-cap active managers. "Both pensions hit new all time high watermarks over this 0.25," Reno said, summarizing the quarter.
Mariner also identified Brandywine as a manager under review due to recent organizational changes and model adjustments that have produced lagging 3- and 5-year returns. The consultant said Mariner would bring options for further review or replacement at a future meeting. Board members raised questions about data consistency on the peer-median figures in the packet; Mariner agreed to investigate and correct the figures for next meeting.
