MACo’s OPEB Investment Trust has yielded its local government members over $5.8 million in investment gains since its inception – contact MACo today to see if this service is right for your county.
MACo offers its member counties, along with their libraries, colleges, and supported units, an investment tool to help gaining long term assets toward their retiree health care liabilities. These costs, referenced by accountants as “Other Post Employment Benefits” or OPEB, present a funding challenge to nearly every county. But this investment vehicle is a low-overhead and low-cost means to put your current assets to work, in a manner similar to a pension fund.
Davenport & Company – offering Trust management and administrative services
McGuire Woods – offering legal services to the Trust and its members
Boomershine Consulting – actuarial services to the Trust and its members
Wilmington Trust – custodial and reporting services
GYL Financial Synergies – investment consultant to the Trust
Clifton Larsen Allen – independent auditors
The following are selected highlights of the performance of the portfolio in the Trust:
- Over the past four years, the Trust has appreciated by $5.8m through a combination of realized and unrealized gains plus interest and dividends.
- The MACo OPEB Trust was initially funded in April 2015 and charged with the task of providing participating entities with returns consistent with the target allocation while taking lower levels of risk.
- The Trust had a market value of $40.8 million as of March 31st, and returned 5.6% since the inception date of April, 2015. The custom benchmark returned 5.9% over the same time period.
- The Trust returned 9.5% for the past three months, with the custom benchmark returning 9.8%. For the past twelve months, the returns are 4.1% and 5.1% respectively.
- The target asset allocation is 65% equities, of which 25% is currently invested in index funds, and 35% fixed income.
- Given the consistent and large relative cash flows since inception, Trust funds are being methodically invested (dollar-cost averaged) into the markets. Consequently, while the OPEB Trust has slightly trailed its custom benchmark since inception, it has done so while experiencing approximately 14% less volatility or risk as measured by the Beta statistic.
Contact MACo Executive Director (and ex-officio Trustee) Michael Sanderson at 410.269.0043 with any inquiries.