St. Mary's County's Retiree Benefit Trust (OPEB) meeting on June 27, 2025, highlighted significant developments in investment performance and future strategies for managing retiree benefits. The meeting focused on the trust's financial health, particularly in private equity and real estate investments, which are crucial for ensuring the sustainability of retiree benefits.

During the meeting, it was reported that the trust's liquid investments performed well, with returns exceeding 3% for the quarter. This positive trend was bolstered by strong performances from investment managers, although some underperformance was noted in specific areas, such as Lord Abbott, which did not meet its benchmark due to a conservative investment strategy focused on shorter durations.

A key takeaway was the trust's shift towards a "harvest mode" in private equity, indicating that distributions are now outpacing new capital calls. This is a promising sign for liquidity, as the trust anticipates receiving more funds back from investments than it is currently committing. The internal rate of return (IRR) for private equity investments was reported at approximately 16.5%, reflecting a solid performance despite a recent decline from previous years.

In the realm of private real estate, the trust's investments showed a slight positive change, although they lagged behind broader market returns. The IRR for private real estate was noted at 10.6%, which, while respectable, has also seen a downward trend over the past few years due to challenges in the real estate market.

The meeting concluded with a motion to accept the investment report, which was unanimously approved by the board. This acceptance marks a critical step in ensuring that the trust remains on track to meet its obligations to retirees while navigating the complexities of the investment landscape.

Looking ahead, the trust's management expressed optimism about the potential for improved returns as market conditions stabilize, particularly in the IPO market. This could lead to faster liquidity and better overall performance for the trust, ultimately benefiting the retirees of St. Mary's County.