Oklahoma Firefighters Pension & Retirement System, Oklahoma City, posted a net return of 10.8% for the fiscal year ended June 30, according to Troy Brown, a managing director at Mariner Institutional, the pension fund’s investment consultant.
The pension fund's one-year return fell shy of the policy benchmark of 11.9%.
The Oklahoma firefighters pension fund returned a net 9.1% for the fiscal year ended June 30, 2023.
Brown attributed the underperformance to the “below-benchmark results in open-end real estate holdings as well as lagging values in the closed-end private investments that are benchmarked against public indices that had positive performance.”
On a three-, five- and ten-year basis, the $3.7 billion pension fund earned an annualized net of 2.7%, 8.2% and 8.1%, respectively. The benchmark returns for the respective periods were 3.6%, 8.1% and 7.4%.
Brown declined to provide the investment returns for individual asset classes.
As of June 30, the fund’s actual allocation was 43.2% domestic equity; 15% international equity; 9.8% real estate; 8.4% other assets; 7.3% domestic fixed income; 6.3% other fixed income; 5.5% global fixed income; 4.2% other equity; and 0.3% 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; 5% each other equity and other fixed income.
