Oklahoma City’s investment consultant told trustees on Oct. 9 that the retirement portfolio was valued just under $970 million as of Sept. 30 and was up 10.4% year-to-date and 4.4% for the quarter (net of fees).

Patty, the investment consultant, said the system’s target allocation is 60% equities, 25% fixed income and 15% real assets. About one-third of the equity allocation is in non-U.S. equities, which benefited the fund as non-U.S. markets outperformed and the U.S. dollar declined.

“Emerging market equities are now the best performing asset class on a year to date basis, followed by international developed markets,” Patty said, noting that roughly half of the emerging-markets return was attributable to currency translation after the dollar’s roughly 10% decline year to date.

Patty said large-cap U.S. stocks (the S&P 500) were up nearly 15% year to date and that enthusiasm for artificial intelligence remained a strong driver of returns. She also noted small-cap stocks had rebounded recently as markets priced in an expected federal funds rate cut.

On potential macro risks, Patty reviewed historical effects of U.S. government shutdowns on markets and said prior shutdowns had little lasting impact on 30- to 60-day market performance. She cautioned, however, that missing economic releases could affect the Federal Reserve’s decisions and therefore market expectations.

Trustees received the monthly investment report and approved a motion to receive the report. The consultant said she would continue to monitor market developments and report at future meetings.

Why it matters: portfolio performance affects the plan’s market value and, through actuarial smoothing, can influence future contribution requirements. The consultant highlighted that recent gains are broadened across geographies, not solely U.S. large cap stocks, which affects diversification and risk considerations.