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Oklahoma City pension fund posts strong August returns; consultant signals private-equity activity ahead
Summary
The Oklahoma City Employees Retirement System received its monthly investment report showing broad gains in August, with U.S. large-cap stocks driving performance. The investment consultant said managers remain under review and recommended near-term private-equity commitments.
Jason (investment consultant) told the Oklahoma City Employees Retirement System board on Sept. 11 that August produced “a good month in the capital markets” and that most major asset classes have now exceeded the system’s 7% actuarial hurdle over multi-year periods.
The consultant said U.S. large-cap stocks outperformed other asset classes in the month and year to date, noting the S&P 500’s concentration among the largest companies and that the Russell 1000 Growth has outpaced the Russell 1000 Value (roughly 29% vs. 11.6% year to date, as presented). He said the fund is slightly overweight equities overall and overweight large cap relative to its policy targets, while private equity remains under-allocated to its target level.
Jason said the board’s policy benchmark uses the S&P 500 to represent large-cap exposure and the policy’s private-equity target, which has caused the fund’s public-index comparisons to lag because the plan has not yet fully implemented its higher private-equity target. He reported that non-U.S. equities were among the best-performing asset classes year to date and that fixed income produced modest but solid returns amid falling yields.
On managers, the consultant said no manager is currently of concern but highlighted Silvercrest as having a mixed recent record since the board hired it in 2022. He noted Silvercrest’s strong August performance but cautioned that recent gains may reflect broad market rallies that lift lower-quality smaller-cap names. He also said the office is monitoring small-cap and non-U.S. allocations.
Looking ahead, Jason said the office expects recommendations on private-equity opportunities before year end, naming Warburg Pincus (Global Growth Fund 15) and TrueBridge (a fund-of-funds and secondary fund) as managers back in market and noted prior commitments to Francisco and Berkshire.
Chair moved, and the board seconded, a motion to accept the monthly investment report; the item was approved on a recorded vote (tally not specified in the meeting transcript).
