Oklahoma Firefighters Pension & Retirement System, Oklahoma City, posted a net return of -10.2% 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 -9.1%.
The $3.2 billion pension, however, exceeded its policy benchmarks on a three-, five- and 10-year basis, earning an annualized net of 7.2%, 8.2%% and 9.3%, respectively. The benchmark returns for the respective periods were 7%, 7.6% and 8.9%.
The pension fund had returned a net 31.8% for the fiscal year ended June 30, 2021.
The overall loss for the current year comes amid a challenging market environment in public equities and fixed income. For the year ended June 30, the Russell 3000 index and Bloomberg U.S. Aggregate Bond index returned -13.9% and -10.3%, respectively, compared with returns of 44.2% and 4.6% for the year ended June 30, 2021.
Mr. Brown declined to provide the investment returns for individual asset classes.
As of June 30, the pension fund's actual allocation was 41.9% domestic equity, 13.6% international equity, 12% real estate, 8.6% other assets, 8.1% domestic fixed income, 6.6% global fixed income, 6.3% other fixed income, 2.3% other equity and 0.6% cash.
The target allocation is 45% domestic equity, 15% international equity, 10% real estate, 8% each domestic fixed income and other assets, 7% global fixed income, 5% other fixed income and 2% other equity.
