Oklahoma Firefighters returns 9.1% for fiscal year

Oklahoma Firefighters Pension & Retirement System, Oklahoma City, posted a net return of 9.1% for the fiscal year ended June 30, according to Troy Brown, executive director at AndCo Consulting, the pension fund's investment consultant.

The one-year return fell short of the policy benchmark of 9.9%.

Mr. Brown attributed the underperformance to "spending a large majority of the year underallocated to public equities relative to policy targets."

"The underweighted position was due to the portfolio's limited ability to actively reduce private asset class exposures that remained overweight due to the denominator effect from 2022's public market pullback," he said in an email.

The $3.4 billion pension fund, however, exceeded its policy benchmarks on a three-, five and 10-year basis, earning an annualized net of 8.9%, 7.6% and 8.8%, respectively. The benchmark returns for the respective periods were 8%, 7.1% and 8%.

The pension fund had returned a net -10.2% for the fiscal year ended June 30, 2022.

Mr. Brown declined to provide the investment returns for individual asset classes.

As of June 30, the pension fund's actual allocation was 42.5% domestic equity, 14.4% international equity, 11.6% real estate, 8.9% other assets, 6.7% domestic fixed income, 6.4% other fixed income, 5.9% global fixed income, 3.3% other equity and the rest in cash.

The target allocation is 42% domestic equity, 15% international equity, 10% real estate, 8% each domestic fixed income and other assets, 7% global fixed income, and 5% each other equity and other fixed income.