OCERS investment report: portfolio at $932 million in June; trustees receive monthly and quarterly updates

Jason presented the investment update and told trustees at the Aug. 14, 2025 Oklahoma City Employee Retirement System meeting that the fund stood at $932,000,000 at the end of June and that assets had grown by about $548,000,000 over the prior 10 years.

Jason said net additions to the custodian accounts over the 10-year period were negative $283,000,000, reflecting benefit payments and other outflows; in the most recent 12 months the net outflow recorded from the custodian accounts was about $31,000,000. The trustees were reminded that OCERS has an assumed rate of return of 7.0 percent and that, over the 10-year trailing period, the portfolio returned about 7.25 percent while the five-year trailing return was about 8 percent.

The presentation described how U.S. large-cap equity performance has dominated long-term returns; the presenter noted a 10-year S&P 500 return of roughly 13.65 percent and that the Russell 2000 small-cap index was about 7 percent over the same period. Jason said OCERS's asset allocation was broadly in line with policy targets but that trustees were overweight large-cap equity (about 20 percent actual vs. a 15 percent target) and underweight private equity relative to the board's recently increased target (the private-equity target was raised from 10 percent to 15 percent and will take time to reach).

Trustees heard manager-specific observations: the board's Silvercrest small-cap manager had experienced a difficult three-year period but produced top-quartile performance over the nine months through June; OCERS's small-cap allocation has been additive over the long term but lagged in the most recent year. The very small emerging-market allocation (Wasatch) is a small-cap EM strategy with an overweight to India and an underweight to China, which the presenter said has been a headwind because China has been a strong performer in EM year-to-date.

The presenter also reviewed fixed-income and real-estate performance, noting fixed income has produced modest contributions amid a higher-rate environment and that real estate's 10-year return remained higher and less volatile than equities over the long run. Jason noted a reporting footnote: net-of-fees manager returns were first captured beginning January 2012, and trustees agreed to add a clarifying footnote for the return table where needed.

After the presentation trustees voted to receive the monthly investment report and the quarterly investment report; both actions were approved by motion and second as recorded by the chair.

Ending: Trustees received the reports and instructed staff to continue monitoring manager performance and to return with negotiated contract terms for the new pension system when available (the contract authorization was handled separately in the administrative agenda).