LAGERS March Board Report

LAGERS March Board Report

The LAGERS Board of Trustees has a fiduciary duty to its membership to ensure the system is administered in a fiscally sound manner. The board meets at least quarterly to make sure LAGERS continues to deliver on its commitments of strength and security.

The board gathered on March 24, 2023 for their quarterly meeting. Below is a summary of the meeting. For more information on LAGERS Board of Trustees or official meeting minutes, please visit our Board of Trustees page.

Committee Updates

The Audit and Finance Committee reported discussion on LAGERS’ Fiscal Year 2024 Business Plan, following which, Executive Director Bill Betts made a brief presentation to the board highlighting the team’s action items for the upcoming year.

The Business Plan covers four key strategies for the system:

  • Safeguard assets to ensure the long-term sustainability of the pension fund while maintaining reasonable benefits.
  • Provide superior service while engaging stakeholders to promote a secure retirement for all.
  • Ensure a highly qualified and engaged team to provide the best possible outcome for LAGERS stakeholders.
  • Optimize utilization of technology and strive for innovation in all areas of the organization.

The board voted unanimously to approve the Business Plan.

Investments Update

LAGERS’ investment team presented the investment activity from the last quarter, which included $315 million in commitments to the following asset classes:

  • $146.2 million to Equity
  • $34.8 million to Fixed Income
  • $83.6 million to Real Assets/Real Return
  • $50.0 million to Strategic

The investment team also reviewed the system’s performance as of December 2022 noting the LAGERS’ portfolio returned -3.72%, 7.91%, and 8.68% for the one-, five- and ten- year periods, respectively. CIO, Brian Collett pointed out that despite a challenging year, the system outperformed its benchmark, and continues to deliver long-term returns in excess of the system’s assumed rate of return.

The investment team then addressed the recent bank failures and discussed the impact to LAGERS, noting that LAGERS’ public exposure to SVB and Signature Bank was approximately $1 million. While the financial impact to the portfolio was minimal, the team also discussed how the collapse has provided an opportunity for LAGERS to reevaluate risk management with its partner financial institutions.

LAGERS has $10.0 billion in assets under management as of December 31, 2022.

Learn about LAGERS Investments

Legislative Update

LAGERS’ legislative team presented a mid-session update on the 2023 Missouri legislative session. Staff provided commentary on key legislative activity as well as a summary of pension legislation with impact to the LAGERS’ system. The team also reviewed the system’s adopted Policy Statements, noting the statements are developed in conjunction with member feedback, staff recommendations, and ultimately board approval at the system’s 4th quarter meeting each year.

LAGERS is not pursuing any legislative initiatives this year.

For more information on LAGERS’ legislative efforts, visit LAGERS’ Issues and Advocacy Page.

Chairperson’s Report

Chairperson Joan Jadali gave notice to the Board that the Legislative Advisory Committee appointments had been approved for the year. The Legislative Advisory committee is a group of appointed members who meet at least annually to review and discuss legislative proposals of the system. The committee currently has 29 members.