Trustees review quarterly investment report, consider raising non-U.S. and small-cap targets and new managers

Oklahoma City Post Employment Benefit Trust trustees on May 14 received the quarterly investment report and discussed shifting the trust—s strategic allocation to increase non-U.S. equity exposure and define a specific small-cap target, but took no formal action.

The discussion matters because the trust holds roughly $111.5 million as of March 31 and trustees are weighing manager changes and asset movements that would reallocate millions of dollars across U.S. large cap, small-to-mid cap and international equities. Jason Pujols, investment advisor with ACG, said the portfolio—s strong trailing returns have been driven by a heavy allocation to U.S. large-cap stocks and that diversification into international and small cap could reduce concentration risk.

Pujols summarized recent performance and drivers: U.S. large-cap (S&P 500) has been the decade—s top-performing asset class, contributing strongly to a 10-year policy performance; the trust—s total portfolio return over 10 years was about 7.8%. He noted fixed…