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ACG consultant: Oklahoma City pension posts strong trailing returns after $660,000 private-market distribution
Summary
At its March 12 meeting, the Oklahoma City Employee Retirement System received an investment report from ACG’s Jason Pulos noting strong trailing returns (one‑year ~16% net, 10‑year 8.7% net) and a roughly $660,000 distribution from First Mark Fund 5 tied to a 15% sale of an underlying interest.
Jason Pulos, an investment consultant with ACG, told the Oklahoma City Employee Retirement System at its March 12 meeting that the fund has posted strong trailing returns and had recently received a private‑market distribution of about $660,000.
Pulos opened the presentation by noting a recent distribution tied to the board’s earlier private‑equity commitment: “you made a $3.75 million commitment to First Mark Fund 5 in 2020. … they made a distribution of $660,000 back to you for a sale of 15% of their interest,” he said, framing the payout as an example of private‑market liquidity beginning to return in 2026. He added that, at the fund level, the underlying investment produced a materially large multiple for investors.
The consultant said that despite short‑term market volatility—energy and materials up while technology and consumer discretionary softened—the plan’s portfolio remained close to target allocations. Pulos reported trailing returns net of fees of roughly 16% for one year, about 11% for three years, and 8.7% for 10 years, which he noted exceeds the system’s 7% required return over the decade.
Pulos reviewed asset classes and performance contributors: international developed and emerging‑market managers delivered very strong absolute returns year‑to‑date, while small caps and non‑U.S. equities also performed well. He noted private equity is currently near 14% net of fees and said private equity can be expected to add a premium over public markets over time, though it can lag in short measurement windows when the S&P performs especially well.
During Q&A a board member questioned why policy‑index comparisons showed dispersion over multi‑year periods. Pulos explained that the policy index contains a large S&P 500 weighting and a private‑equity component; at short measurement points, public markets’ strong gains can make private equity appear to lag even when long‑term expected premiums remain.
The board moved to receive the report and voted to approve receipt of the investment consultant’s monthly report.
Context and next steps: Pulos said he expects more private‑market liquidity and distributions to emerge through 2026, which may provide funding and rebalancing opportunities for the plan. The board did not take any allocation changes during the meeting.
