Oklahoma Tobacco Settlement Endowment Trust Fund, Oklahoma City, rehired NEPC as investment consultant.
The $1.7 billion endowment trust fund's board of investors approved rehiring NEPC at its Aug. 17 meeting, said Lisa Murray, chief investment officer.
The fund had issued an RFP in June due to the pending expiration of NEPC's contract on Nov. 30. There was a total of three bidders and no finalists, Ms. Murray said.
Separately, the trust fund reported a net return of 25.9% for the fiscal year ended June 30 in an investment report emailed by Ms. Murray. The return well exceeded the 21.5% policy benchmark return for the period.
For the three, five and 10 years ended June 30, the trust fund returned an annualized net 10.5%, 10.1% and 7.5%, respectively, above the respective benchmarks of 9.6%, 9.3% and 7.4%.
The trust fund had returned a net 1.4% for the fiscal year ended June 30, 2020.
For the most recent fiscal year, master limited partnerships was the best-performing asset class with a net return of 52% for the year ended June 30 (below its 64% benchmark), followed by domestic smidcap equities with a net return of 50.2% for the year ended June 30 (below its 57.8% benchmark), and domestic large-cap equities with a net return of 44.9% (43.1% benchmark).
International equities returned a net 42.3% for the fiscal year (35.7% ) followed by global tactical asset allocation at a net 21.9% (3.2% ); high-yield fixed income, a net 13.7% (13.5%); private debt, 9.1% (5.2%); absolute-return fixed income, 6.5% (3.2%); real estate, 6.3% (7.4%); dynamic fixed income, 5.4% (2.1%); and core fixed income, 0.9% (-0.3%).
As of June 30, the trust fund's actual allocation was 23.9% domestic large-cap equities; 16.7% international equities; 10.9% core fixed income; 10.2% absolute return fixed income; 9.2% GTAA; 6.8% real estate; 6.6% domestic smidcap equities; 5.4% high-yield fixed income; 4.7% MLPs; 3.1% private debt; and 2.5% dynamic fixed income.