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FUNDRAISING NEWS | January 29, 2025
Tags: Pension Funds, Equities, Consultants
The Frederick County Employees Retirement Plan is making changes to its asset allocation structure, which now includes a new US equities umbrella category and a gradual reshuffling of allocations between portfolios, according to recently released minutes from its December 10, 2024 meeting.
Following a review of the pension’s investment policy statement by general consultant Marquette, Frederick County unanimously approved to merge its US large-, mid-, and small-cap equities under a single US equities category, which will carry a 52% target weight, a 42-62% allocation range, and will use the Russell 3000 Index as benchmark. The new target combines the previous 35% benchmark for US large-cap, 9% for mid-cap, and 8% for small-cap equities. Other asset classes saw no changes in target, with international equities maintaining a 10% benchmark; global infrastructure at 6%; fixed income at 31%; and cash at 1%.
The pension said it will gradually roll out the policy changes over the next year through a four-step implementation plan provided by Marquette. Frederick County approved the adoption of the first step, which will see a shifting away in allocation from small-cap stocks due to the fact it is currently overweight there. It also plans to move $10M from Loomis Sayles Large Cap Growth in the US equities portfolio to Baird Aggregate Bond Fund in US fixed income, while reallocating $20M within US equity – $9.5M from Neuberger Berman Intrinsic Value R6 and $10.5M from Stephens Small Cap Growth Strategy – to Vanguard Institutional Index Fund Inst Plus. The Maryland-based pension intends to implement the reallocations on a quarterly basis.
As of December 6, 2024, Frederick County manages total plan assets valued at approximately $1.1B.
Written By: Dakota
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