December Transfer Update & October Investment Performance

December 10, 2021

On December  1, 2021, the Firefighters’ Pension Investment Fund (“FPIF”) initiated the transfer of investment assets from 33 firefighter pension funds through its custodian, Northern Trust. Northern Trust has transitioned approximately $550 million in investment assets in December, and FPIF is pleased to announce that the transition is being executed according to plan. To date, FPIF has successfully transferred more than $2.8 billion in investment assets from 157 firefighter pension funds.

FPIF would like to thank the Boards of Trustees of the 33 firefighter pension funds transitioning their investment assets on December 1st. Your assistance helped ensure an efficient and successful transition.

October Investment Performance

The October FPIF Investment Performance Report can be found under the Investments heading on the FPIF website (link).

FPIF’s portfolio returned 3.0% in the month of October.  Global equity markets trended upwards, led by large cap U.S. and European equities.  U.S. equities reached new highs as Q3 corporate earnings results exceeded market expectations and interest rates remained low.  Economic indicators such as the ISM Purchasing Managers’ Index also increased investor optimism as consumer demand, production, and employment continued to strengthen.  Each of the GICS market sectors experienced positive returns and were led by a 10.9% return in consumer discretionaries.

European markets experienced stronger-than-expected GDP growth and strong earnings results helped push European equity indices upwards.  The United Kingdom also announced significant fiscal easing measures, which contributed to the region’s positive equity performance.

In fixed income markets, the 2-year treasury yield rose, while the 10-year fell, ending at 0.49% and 1.56%, respectively.  Markets priced in accelerated central bank tightening, which could weigh on longer term fixed income assets.  While most fixed income indices were negative, US TIPS gained 1.18%.  Inflation, as measured by the Consumer Price Index, rose 0.9% in October and is up 6.2% over the last 12 months.  TIPS have broadly outperformed all other broad fixed income indices on a year-to-date basis, though the persistence of inflation is likely to be affected as new information related to the global supply chain, labor force participation, and Federal Reserve policy is released.