The Lexington Police & Fire Pension Board convened on May 14, 2025, to discuss the performance of the fund and upcoming asset liability studies. The meeting began with an overview of the capital markets, highlighting recent fluctuations and the impact of new tariffs announced on Liberation Day in April. The board noted that the S&P 500 had experienced a decline of 4.3% in the first quarter, following two years of significant growth, but showed signs of recovery with a 5.2% increase in May.

The discussion included a detailed analysis of the fund's performance, with a focus on asset allocation and the necessity for rebalancing. The board emphasized the importance of maintaining a diversified portfolio to navigate market volatility. The upcoming asset liability study will explore potential changes to the fund's asset mix, particularly concerning international equities and fixed income investments.

Jim O'Connor presented a summary of the fund's performance, indicating that while the total fund decreased by 0.6% in the last quarter, it outperformed its benchmark, which fell by 0.7%. The board also reviewed cash flow statements, noting a total fund value of approximately $963 million at the end of the quarter.

The meeting concluded with a consensus on the need for continued monitoring of market conditions and the importance of strategic asset allocation to ensure long-term stability and growth for the pension fund. The board plans to reconvene in August to finalize recommendations based on the asset liability study.