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Investment consultant: portfolio valued at $923.6M; fixed-income manager transition set for Feb. 1
Summary
Patty, the board’s investment consultant, told the Oklahoma City Employee Retirement System on Dec. 12 that the portfolio was $923,600,000 at the end of November, with YTD return 10.1% and one‑year return 14.8%. The board was told WAMCO and Brandywine will be liquidated and a Pioneer multi‑sector strategy funded on Feb. 1.
Patty, the board’s investment consultant, presented a November market update and a portfolio review at the Dec. 12 Oklahoma City Employee Retirement System meeting. She said, “markets continue to do very well,” and reported the total portfolio value at $923,600,000 as of the end of November.
The presentation framed near‑term expectations and recent performance: Patty reported a year‑to‑date portfolio return of 10.1% and a one‑year return of 14.8%. She attributed part of the portfolio’s variance from the policy index to the private equity allocation, noting that private equity valuations are delayed and not marked monthly.
Patty outlined the board’s planned changes in the fixed‑income sleeve: the WAMCO and Brandywine positions are expected to be liquidated so the Pioneer multi‑sector strategy can be funded on Feb. 1, 2025. She said the new Pioneer strategy will represent roughly 60% of the fixed‑income allocation and that rebalancing will follow the manager transition.
On asset allocation, Patty reported the board’s targets and current positions: a 60% target to equities (global/US), 25% to fixed income and 15% to real assets. She noted private equity has a 15% target but currently sits near 10%, which leaves an overweight in the large‑cap public equity bucket while capital is called into private funds.
An Unidentified Board Member asked whether the actuary measures returns net of fees or gross. Patty confirmed the actuary uses net‑of‑fees figures. That clarification matters for long‑term performance comparisons: the board was told the 10‑year net‑of‑fees return is 6.6%, below the 7.5% long‑term objective referenced in the presentation.
There were no management issues raised for the current managers; Patty said there were “no major concerns with any of the managers in the portfolio.” After brief questions, the board moved to receive the monthly investment report and approved that motion.
The board’s next steps, as stated by the consultant, are to complete the manager legal work, execute the liquidations for WAMCO and Brandywine, fund the Pioneer strategy on Feb. 1, 2025, and perform related rebalancing.
