Norwalk pension staff reports rebound in April; Emerald posts strong first month, BlackRock index implementation underway

Staff reviewed the pension plan
pril results and portfolio activity. They reported total plan assets at the end of the month of about $618 million, with equities overweight and fixed income roughly flat year-to-date. "Equity markets in April were up over 10%," staff said, noting a strong rebound from March lows and ongoing volatility across sectors.

Staff flagged manager-level results: Emerald (a new small-cap growth manager) recorded its first full month of performance in April and outperformed by approximately 400 basis points, helped by technology stock selection. By contrast, LSV (a deeper-value small-cap manager) underperformed, driven by screens that exclude some unprofitable small-cap companies.

On implementation, staff said paperwork for a BlackRock international index fund has been executed and they are coordinating with the custodian to place the fund on the platform. Partial redemptions from Walter Scott and Silchester were described as expected in the coming weeks as the board rebalances to the index fund.

Staff said international equity performance drivers have included defense companies, AI exposure and European financials, and noted that short-term manager attribution tables (page 25 in staff materials) can show negative effects that are less pronounced over longer (five-year) windows.

Board members asked follow-up questions about attribution methodology and requested that staff circulate the research note and supporting materials; staff agreed to provide the additional context and charts referenced during the meeting.