Portsmouth pension advisers report strong April gains; fire & police plan 71% funded at end of March

Consultants told the Portsmouth Pension Board that a broad market rally in April and strong corporate earnings have materially improved plan-year returns, but the fire and police pension remained 71% funded as of March.

Brian, an investment consultant, told the board that “the good news is that markets are better in April. We had the best return in equity markets, best monthly return in the month of April, since, April 2020.” He and co-presenter Jim said late-April headlines and a reported ceasefire drove a rapid market rebound after a weak first quarter when the S&P 500 fell roughly 4.5% and the Nasdaq fell over 7%.

The consultants said that, when April is included, the plan’s return since the 2025 plan year began (06/30/2025) is about 13.5% net of all fees. “That is almost double what the actuary is assuming,” Brian added, referring to the plan’s assumed long-term return of 7.25% used by the actuary.

Perry, a presenter introduced alongside John Hancock, reviewed plan-level detail and reported the funded status figures: the fire and police system was 71% funded at the end of March, a notable decline from the prior year. Perry attributed most of the drop to first-quarter investment performance and to the plan’s expected contribution not yet being deposited — a delay the presenter said was related to a transition in the city’s chief financial officer position. He said April’s investment gains should raise the funded ratio when the contribution posts.

The presenters described portfolio positioning changes made in April. Brian said the board’s total fund was conservatively positioned and that managers paid to outperform had generally done so: five of six active equity managers outperformed their benchmarks in the quarter. The board shifted a defensively positioned global portfolio into passive strategies to reduce fees and increase benchmark participation.

On strategy and risk, Jim said concentration in a handful of very large technology companies is a feature of recent gains but argued those firms are producing substantial revenue and earnings, distinguishing current concentration from past bubbles. He also highlighted risks including inflation, central-bank policy shifts and the potential for interconnected stresses in private credit.

Operational details presented by Perry included that the two plans together hold just under $200,000,000 in assets, the fire and police system had 617 participants (mostly retirees) and monthly benefit payments of about $5,000,000, and the supplemental plan had about 311 participants with roughly $1.6–$1.7 million in quarterly payments.

Board members asked whether the city planned to make the overdue contribution; Perry and the consultants indicated the contribution was expected and that the April market improvement should increase the funded ratio. The meeting ended with Chair Mark Gardner reminding the board that several member terms, including his and Landon Moore’s, will expire in late summer and that the board may not be able to meet after a planned September dissolution unless replacements or governance decisions are made.

The board did not vote on minutes because it did not have a quorum. No motions or formal votes were recorded during this session.