Key Takeaways
- • The Belmont Contributory Retirement Board is moving the majority of its liquid assets to the state's Pension Reserves Investment Management (PRIM) Board, with most transferable on May 1, according to NEPC investment consultant Scott Driscoll.
- • As of Jan. 31, 2024, the board held $153.4 million in liquid assets; as of March 12 it already had $69 million, about 42.5 percent of total assets, in PRIM.
- • The board holds $9.3 million in illiquid assets that will not be moved to PRIM.
- • Great Lakes Advisories, one portfolio, will become available for transfer in June.
- • Transition costs for the Atlanta Capital Management separately managed account are expected to be a few hundred dollars, per M&T Bank's Anthony Teberio.
Summary
The Belmont Contributory Retirement Board has begun transitioning the majority of its investment assets to the Pension Reserves Investment Management (PRIM) Board, the state-level pension investment pool, according to The Belmont Voice. As of Jan. 31, 2024, the board reported $153.4 million in liquid assets, most of which can be transferred to PRIM on May 1, according to Scott Driscoll, an investment consultant with NEPC. A separate portfolio, Great Lakes Advisories, will be available for transfer in June.
As of March 12, the retirement board already held $69 million, roughly 42.5 percent of its total assets, in PRIM. The board's discussion at its Monday meeting focused on the remaining liquid assets. The board also holds $9.3 million in illiquid assets, such as stocks, bonds or other holdings that cannot be quickly converted to cash; these will not be moved to PRIM.
The decision to shift all liquid assets to PRIM preceded a vote earlier in the month to re-elect longtime member Thomas Gibson. Member Brian Antonellis said he joined the board to bring a fresh perspective, adding that he had seen a need to implement best practices and that the board's move to PRIM was a step toward that goal.
According to Anthony Teberio of M&T Bank, transition costs for assets managed by Atlanta Capital Management will amount to a couple of hundred dollars, comparable to normal trading costs over a six-month period. Executive Director Ryan Horan explained that Atlanta is run as a separately managed account, and the custodian charges a fee per trade, with each individual stock sale counted as a separate trade. Letters notifying investment firms of their termination are expected to be issued.
As of March 12, the retirement board already held $69 million, roughly 42.5 percent of its total assets, in PRIM. The board's discussion at its Monday meeting focused on the remaining liquid assets. The board also holds $9.3 million in illiquid assets, such as stocks, bonds or other holdings that cannot be quickly converted to cash; these will not be moved to PRIM.
The decision to shift all liquid assets to PRIM preceded a vote earlier in the month to re-elect longtime member Thomas Gibson. Member Brian Antonellis said he joined the board to bring a fresh perspective, adding that he had seen a need to implement best practices and that the board's move to PRIM was a step toward that goal.
According to Anthony Teberio of M&T Bank, transition costs for assets managed by Atlanta Capital Management will amount to a couple of hundred dollars, comparable to normal trading costs over a six-month period. Executive Director Ryan Horan explained that Atlanta is run as a separately managed account, and the custodian charges a fee per trade, with each individual stock sale counted as a separate trade. Letters notifying investment firms of their termination are expected to be issued.
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