Charles County Pension Investment Committee Meeting - June 9, 2026

The Charles County Pension Investment Committee met on June 9, 2026, with Chairman Hall excused. The meeting was chaired by an alternate member. After roll call, the committee approved the minutes from the previous meeting. The primary agenda item was the quarterly investment review presented by Mr. Fryer of Bolton, covering first-quarter 2026 performance, market volatility, and progress on the new asset allocation.

Consent Calendar

• Minutes Approval: The minutes from the prior meeting were approved by motion (Dyer, second Jackson). No discussion or amendments.

Discussion Items

• Quarterly Investment Review (Mr. Fryer):

  • Economic Context: As of March 31, 2026, inflation was 2.8%, unemployment 4.2%, and the Fed held rates steady. Post-quarter tariffs created volatility; the S&P 500 52-week high was February 19, 2026, and the 52-week low was April 7, 2026. Year-to-date (as of meeting) the S&P 500 was down 3%, recovering from a 6% decline earlier in April.
  • Plan Performance: The plan value was $442 million (down from $450 million at year-end). First-quarter return was -0.78%, ahead of the policy benchmark (-0.89%). For the trailing 12 months, the plan returned 4.22% (benchmark 5.06%). Underperformance was attributed to international asset allocation and active large-cap managers, but was less than 1%.
  • Contributions & Distributions: The plan received $1.0 million in contributions and paid out $5.3 million in benefits/expenses during the quarter. The county makes its annual contribution typically in July, so cash flow will even out over the year. Expenses of $67,747 were questioned; Mr. Fryer explained they cover custodian, consultant, and actuary fees, documented via PNC statements.
  • Fund-Level Commentary:
    • American Funds Euro Pacific Growth Fund (international active): Returned 2.62% vs. benchmark 5.23%, underperforming due to a growth tilt and low China exposure. Mr. Fryer noted the fund's strategy has not changed and it still outperforms over 10 years, so it is not on a watch list. An alternative international manager has been vetted.
    • AB US Large Cap Growth Fund: Returned -8.27% for the quarter, but outperformed its category (Russell 1000 Growth -10%) because it avoids Magnificent Seven stocks. Mr. Fryer highlighted this as an example of active management adding value during volatility.
    • International equity overall: The portfolio's two international funds combined returned 5.3% for the quarter.
  • New Asset Allocation Implementation: The committee previously approved a new allocation including 10% private real estate and 5% private equity. Paperwork with First Trust is underway. Mr. Fryer suggested that the investment subcommittee handle minor decisions and report back to the full committee at the next meeting. The committee agreed, with a note to maintain transparency by recapping actions.

• New Business: None.

Public Comments & Testimony

• No members of the public offered comments.

Key Outcomes

• Minutes approved unanimously.
• Investment Subcommittee Authorized: To manage implementation details of the new private market allocations, with full committee reporting at future meetings.
• Future Action: The communications pension enhancement proposal will be presented to the County Commissioners on May 13, 2026 (noted for the committee's information).
• Adjournment: Motion by Jackson, second by Blackwell; meeting adjourned.