Township continues existing investment policies

By Lisa Brody

Bloomfield Township Trustees unanimously approved maintaining their four investment policies, with minor adjustments as needed, at their meeting on Monday, February 14.

Treasurer Brian Kepes explained the four investment policies, the Defined Contribution Investment Policy, Defined Benefit Investment Policy, Retiree Health Care Investment Policy and the township's General Investment Policy, had each been reviewed at board study session on January 26, and by the township's financial sustainability committee.

Kepes said the defined benefit assets are held in the Prudential-managed Guaranteed Deposit Account. As of January 1, 2022, the rate for existing money is 2.55 percent and 1.5 percent for new money.

At the study session, Brian Green of AndCo updated the board and committee on the investment results for calendar year fourth quarter and fiscal year to date at December 31, 2021.The 2021 fiscal year to date performance for the Defined Benefit Equity Portfolio is 8.85 percent. Noteworthy stocks and funds were highlighted. Since inception, invested proceeds from the issuance of the 2013 Pension Obligation Bonds have yielded a return of 10.86 percent, he reported.

Schwartz & Co. manages the Defined Contribution Investment Policy for the township, where the results of the 401(a) fund investments in 2021 of $16.6 million were examined relative to the previous year and their peer benchmarks. The performance of the funds investments retiree health savings plan in 2021 of $3.8 million were examined relative to the previous year and their peer benchmarks. Municipal employees have the availability to take advantage of the 457(b) Plan similar to the 401 (a) Plan. The plan currently contains $35.8 million in assets and most funds are performing as expected, trustees were informed.

Kepes said the only changes to the General Investment policy was to remove some banks which had merged or had changed names.