Oklahoma City Employees Retirement System increased its overall target allocation to equities and reduced its overall exposure to fixed income.
The $878 million pension fund's board approved a new investment policy integrating the new targets at its remote meeting March 11, a video of the meeting shows.
The pension fund upped its target to equities to 65% from 60%. Among the six separate asset classes named as equity assets, the target to international developed markets equities was increased to 11% from 10%, the target to emerging markets equities was increased to 6% from 5% and the target to private equity was increased to 10% of the overall fund from 5%. The target to domestic large-cap equities was reduced to 18% from 20%, and the pension fund's targets to domestic smidcap equities and long/short equity remained the same at 10% each.
The overall fixed income target was reduced to 20% from 25%. Among the four separate asset classes named as fixed-income portfolios, the core-plus fixed-income target went up to 8% of the overall fund from 7.5% and the targets to global fixed income, liquid absolute return and core fixed income were dropped to 5%, 4% and 3%, respectively, from a respective 7.5%, 5% and 5%.
The targets to core real estate and opportunistic real estate remain the same at 10% and 5%, respectively.
As of Feb. 28, the actual allocation as 22.4% domestic large-cap equities, 13.4% domestic smidcap equities, 10.5% long/short equity, 9.5% core-plus fixed income, 9.3% international developed markets equities, 8.8% core real estate, 6.3% global fixed income, 6.2% emerging markets equities, 5% private equity, 3.3% liquid absolute return, 2.8% core fixed income, 1.2% cash and equivalents, 1% opportunistic real estate and 0.3% judgments.
Investment consultant Asset Consulting Group assisted.