►
Description
The quarterly meeting of the Oklahoma City Post-Employment Benefits Trust, via video conference, for August 10, 2020.
B
Yeah
yeah,
I
I
I
love
them.
I
love
it
fried,
but
I
don't
like
the
mess
so
I'll
toss
them
in
a
little
bit
of
evo
and
salt
and
pepper
and
then
put
them
on
the
grill
for
a
few
minutes
until
they've
got
some
good
grill
marks
in
them
with
no
mess
and
then
I'll
eat
on
three
dozen
or
so
as
a
side
for
a
week
thereafter,
they're
great
leftover.
C
C
C
E
A
Good
morning
before
we
get
started,
I
have
a
script.
I
need
to
read
to
everybody
here
as
it
relates
to
this
meeting.
This
meeting
is
taking
place
over
video
conference.
If
the
video
conference
is
disconnected
anytime
during
the
meeting,
the
meeting
shall
be
stopped
and
reconvened
once
the
video
connection
is
restored.
A
B
A
A
E
E
Okay,
there
we
are
I'm
just
going
to
page
through
this.
If
I
could,
if
everyone
can
hear
me,
okay,
just
a
thumbs
up
very
well
okay,
so
we
have
a
lot
of
reports
to
review
here.
I'm
not
gonna
spend
a
lot
of
time
on
the
may
31st,
given
that
it
is
rather
dated,
but
you
can
see
here
the
market
value,
as
of
may
31
was
66
million
300
000.
E
So
it's
a
a
nice
gain
over
the
period,
and
I
do
want
to
remind
everyone
of
when
we
started
in
2009
we
had
six
million
dollars
so
a
great
deal
of
contributions,
but
also
a
great
deal
of
withdrawals
over
that
time.
21
million
dollars
in
gains
over
that
period
and
then
income
of
6.8
and
that's
as
of
may
31,
so
performance
for
may
was-
was
strong
and
across
the
board
and,
as
you
will
see-
and
I
think
as
we
all
can
can
acknowledge
right
now.
Markets
and
economy
are
not
the
same
thing.
E
The
economy
is
slow
right
now,
obviously,
we've
been
put
into
a
recession
to
fight
the
pandemic,
but
the
markets
are
being
supported
in
a
way
we've
never
seen
before.
By
the
federal
reserve,
the
treasury,
et
cetera,
the
united
states,
is
leading
the
way
when
it
comes
to
this
form
of
support
of
the
markets.
But
it
appears
that
the
eu
might
be
following
us
once
they
arrange.
E
And
can
come
to
a
consensus
there,
it's
a
little
harder
to
make
programs
like
that
happen
overseas,
and
I
will
say
that
the
us
government
acted
much
faster
than
we've
ever
seen
a
response
to
a
market
crisis
like
this
or
actually
I'm
sorry,
it's
a
health
crisis
so
going
into
the
june
30.
This
is
the
shorter
version
of
the
report.
You
can
see
that
for
the
month
the
total
fund
was
up
two
percent
a
little
bit
more
than
two
and
for
the
quarter
it
was
at
almost
17
percent.
These
are
neta
fees.
E
E
Now
this
is
the
longer
report.
I
don't
want
to
spend
a
ton
of
time
on
on
this.
I
want
to
save
some
time
for
questions,
but
just
pointing
out
on
the
market
environment
here
this
is
for
the
quarter.
This
is
from
april
1
to
june
30,
and
if
we
can
all
remember
back
the
bearer
market
or
the
crash,
if
you
would
say
the
covet
crash
started
in
the
late
mid
to
late
february,
I'll,
say,
february
18th
the
market
went
down
quick,
35
percent
and
then
on
march
I
believe
it
was
march
23rd.
E
If
these
numbers
do
kind
of
these
days
run
together,
sometimes
march
23rd,
the
market
bottomed,
and
since
that
time
you
can
see
how
strong
the
returns
have
been,
and
what
these
figures
show
do
not
show
is
those.
Last
few
days
of
march,
where
we
saw
markets
going
up,
you
know
some
cases,
almost
double
digits
percentage-wise
in
a
day,
so
the
return
off
the
bottom
was
very
strong.
E
A
E
If
you've
been
watching
the
news,
you've
heard
a
lot
about
the
600
payments
assistance
payments
for
workers
who
are
put
out
of
work
in
the
great
financial
crisis
we
weren't
spending
600
per
person
per
week.
It
was
25,
so
you
get
an
idea
that
the
magnitude
of
everything
being
done
is
is
much
much
larger
this
time.
E
2016
was
the
last
time
we
saw
value
outperform
and
in
a
late
stage,
bull
market.
That's
not
that's,
not
a
unusual
thing
to
see,
but
the
late
stage
of
this
bull
market
lasted
from
2017
until
the
first
quarter
of
this
year.
That's
an
extraordinarily
long
period
of
time
and
what
you
have
seen
is
you've
seen
some
resurgence
in
value
since
the
bottom
of
the
market,
but
it
just
doesn't
appear
here
and
the
main
reason
it
doesn't
show
here
is
these
names
right
here.
E
The
market
is
being
led
by
these
six
lines
right
here:
microsoft,
apple,
amazon,
alphabet,
which
is
google
and
facebook,
and
you
see
how
large
microsoft
is,
and
you
see
how
large
apple
is
compared
to
everything
else,
and
you
see
what
their
returns
are.
So
information
technology,
consumer
discretionary,
which
is
amazon
all
of
these-
are
doing
much
much
better.
They
are
benefiting
from
the
pandemic.
E
E
That
are
driving
the
price
in
the
market
right
now
and
if
you
go
a
little
bit
deeper
than
that,
you
can
see
other
names
and
you've
got
some
energy
names
that
started
to
do
well
during
the
quarter.
That
was
because
they
did
not
go
bankrupt
when
folks
thought
they
would
you've
got
wayfarer,
which
is
home
delivery
of
furniture,
and
I
think
they
set
a
record
during
the
second
quarter
of
this
year,
delivering
desks
for
people
who
are
having
to
work
at
home.
So.
E
Of
industries
here
are
benefiting
from
this,
and
not
it's
not
just
health
care
like
you
might
expect
so
big
news
to
be
watching
for
soon
is.
There
is
a
company
that
may
be
appearing
in
the
s
p
500.
That
is
not
a
member
right
now
and
it's
it's
called
tesla,
so
to
be
included
in
the
s
p
500.
You
have
to
be
profitable
four
quarters
in
a
row,
tesla.
E
E
It
is
a
300
billion
dollar
company,
that's
not
in
the
index,
and
you
know
there
are
some
questions
about
how
they
run
their
business
and
whether
and
whether
the
s
p
committee
will
allow
them
in,
but
that's
just
how
large
that
company
has
become
very
very
quickly.
Looking
on
the
next
page.
Here
you
can
see
international.
E
We
do
have
international
investments
here
and
international
did
keep
up
on
the
equity
side
very
very
nicely.
Over
the
trailing
year
you
can
see
that
its
performance
is
very
wide
dispersion.
This
em
emerging
markets
is
you're,
seeing
brazil
result
being
hurt
very
badly
by
the
pandemic
during
the
quarter.
In
some
and
also
last
year,
you
saw
some
other
countries
in
latin
america
hurt
badly.
Oddly
enough,
china
is
moving
forward.
E
They
have
emerged
from
the
worst
stage
of
the
pandemic
faster
than
we
are,
and
that
is
helping
performance
so
going
into
the
bond
market
world
here,
and
this
is
important,
because
this
is
sort
of
how
we
this,
how
we
stabilize
the
portfolio
from
equity
market
volatility
during
the
quarter
returns
were
good.
Some
of
it
was
a
return
to
risk
where
you
saw
high-yield
bonds,
10.2
percent
for
the
quarter.
We
have
some
of
those,
but
those
sold
off
pretty
dramatically
during
the
first
quarter.
E
A
E
A
E
Portfolio,
if
equities,
do
sell
off
now,
looking
on
this
page
during
the
quarter,
a
number
of
charts
where
I'll
say
broken,
this
is
one
of
them.
This
is
interest
rates,
market
interest
rates
in
the
united
states,
and
you
can
see
where
they
are
the
green
boxes.
Here
it's
a
box
because
the
range
is
0
to
25
or
25
basis
points
right
now,
that's
0.25
percent
is
the
fed
funds
rate.
This
is
how
they.
This
is
what
banks
charge
each
other
for
overnight
lending,
but
this
b
double
a
oas.
E
I
know
it's
a
alphabet
soup,
here
the
b
double
a
is
a
b
double
a
rated
bond.
Oas
is
what's
called
an
option,
adjusted
spread,
and
the
really
important
word
here
is
spread.
So
how
much
more
do
you
earn
owning
a
bond
rated
b?
Double
a
versus
a
treasury
and
you'll
see
that
through
you
know,
over
the
last
year
it's
been
about
one
and
a
half
percent
per
year.
You've
earned
in
interest
above
fronting,
taking
the
additional
risk
of
doing
that
b.
Double
a
rated
bond.
E
E
But
then
it
goes
back
in
very
very
quickly,
as
the
federal
reserve
announces
that
they're
supporting
the
bond
markets
and
then
down
here
is
an
important
slide
important
chart.
This
is
the
treasury
yield
curve.
So
this
is
a
one
month
treasury
and
you
can
see
it's
paying
zero
to
25
basis
points.
You
have
to
go
out
to
the
seven
year
bond
before
you
get
half
a
percent
per
year.
E
So
what
that
tells
you
is
that,
looking
forward
by
owning
a
treasury
bond,
if
you
hold
it
to
maturity
from
30
years
from
now,
you're
going
to
be
paid
one
and
a
half
or
one
point
two
percent
interest
per
year,
and
that
is
what
your
expected
return
should
be.
So
we
are
thinking
forward
here.
You
know
the
equities
have
come
up
nicely,
but
if
we
are
trying
to
hit
an
actuarial
rate
of
return
assumption
of
above
seven
percent,
owning
bonds
makes
that
very
difficult.
E
I'm
not
saying
that
we
need
to
completely
exit
the
bond
market,
but
we
are
paying
for
the
stabilization
of
the
bonds
in
the
portfolio,
and
this
fits
very
nicely
with
our
long-term
thesis
that
equities
provide
the
return
that
we
need
to
to
produce
with
this
pool
of
assets.
This
is
as
of
june
30..
This
is
the
total
fund
trailing
one
year
rate
of
return
2.9,
so
it
was
positive
for
the
year
after
the
rally
that
we
had
during
the
the
second
quarter
of
this
year.
E
I'm
not
going
to
talk
tons
about
this,
but
here
we
see
the
market
value
at
67.7
million
dollars,
we're
almost
back
up
to
the
peak
that
we
saw
at
the
end
of
last
year.
So
again
remember
this
0809
period.
It
took
a
long
time
to
get
back
from
there.
This
2019,
or
this
2020
covet
19
crash
in
the
market,
has
come
back
very
very
quickly.
E
Now
the
asset
allocation.
You
can
see
again
this
bump
here,
where
we,
where
domestic
fixing
increased
no
effort
on
our
part
whatsoever,
just
because
the
equity
market
decreased
at
that
time
and
now
here's
our
allocation
in
big
picture.
We
have
about
70
percent
equities
and
the
rest
in
fixed
income
that
70
I
get
there.
59
domestic
versus
8.7,
international
and
those
are
long-term
targets.
This
is
where
we
should
be
now.
Our
fixed
income
does
a
lot
of
work
here.
We've
got
the
way
that
we
allocate.
That
is
core
fixed
income.
E
E
E
E
E
E
I
know
it
was
extraordinarily
difficult
during
march
during
february
to
say
shouldn't
we
be
doing
something,
and
I
did
not
predict
any
of
this
happening
as
it
is,
but
our
long-term
target
allocation
is
views
the
world
in
very
long
term.
In
a
perspective,
that
is
very
long
term
that
says
equities
outperform
bonds
and
what
that
allows
us
to
do
is
we
don't
have
to
react?
E
E
To
point
out
equities
up
very,
very
strong
right,
our
our
s,
p
500
index
was
up
four
million
dollars
during
the
quarter
right,
that's
most
of
the
gain
that
we
see
here,
our
fixed
income,
even
those
assets,
were
positive,
except
for
the
hoisinton
portfolio
and
that's
the
active
duration,
which
sort
of
counter
balances
everything
else
we
do
looking
here.
You
can
see
over
the
this
is
the
total
fund,
neta
fees
allocation
so
versus
the
benchmark
we
outperformed
during
the
quarter.
Fourth
percentile
rank
for
the
year-to-date
period
this
calendar
year
today
down
three
percent.
E
We
take
more
equity
risk
than
the
than
our
poor
than
our
benchmark
and
that's
understandable.
Over
the
last
one
year
2.91
we
did
underperform
and
most
that's
from
the
equity
portfolios,
but
we
have
a
big
slug
that
came
here
from
from
loomis
sayles,
so
going
down
for
the
quarter,
our
fixed
income
assets
were
at
3.75.
E
Our
domestic
equity
was
up
more
than
25
during
the
quarter.
You
can
see
our
returns
here
again:
loomis
sayles,
the
most
aggressive
of
almost
6.8
double
line
at
five
and
a
half
lord
abbott
high
yield.
So
this
is
the
below
investment
grade
bonds
at
10.9
percent
and
hoisington.
Actually
down
on
the
quarter,
you
can
see
our
domestic
equity
portfolio
the
index
tracked
perfectly.
E
In
fact,
if
you
look
across
the
board
doing
very
very
well
our
mid
cap
index
portfolio
up
24.96
and
again
tracking
the
benchmark
across
the
board,
hodgkiss
and
wiley
mid-cap
value
value's
been
tough.
Hotchkiss
is
a
deep
value
manager,
so
it's
been
even
tougher
for
them,
but
coming
out
of
a
recession,
their
portfolio
usually
does
very
very
well,
and
you
can
see
it
happened
during
this
court
again,
not
real
pleased
with
these
longer
term
results,
but
we
endure
these.
E
So
we
can
enjoy
these
right
here,
and
this
portfolio
is
offset
with
our
next
manager
here,
which
is
stevens
small
cap,
which
even
had
a
better
return
during
the
quarter.
This
is
small
cap
growth
and
their
returns
have
definitely
come
around
nicely,
and
then
we
have
our
causeway
international
value
up
20
during
the
quarter,
so
in
in
big
picture
equities
did
better
value
did
pretty
well
during
the
quarter.
E
We
have
exposure
to
those
largest
names
that
are
driving
the
market
through
the
index
fund
and
I
think
that's
exactly
the
way
we
want
exposure
there,
because
it's
very
cheap
and
it
is
cap
weighted.
So
it
course
corrects
over
time.
If
those
five
become
not
the
largest
five,
their
replacements
will
will
take
their
place
and
we
don't
have
to
do
anything.
So
indexing
is
good
for
the
large
cap
part
of
the
market
and
I'd
argue
it's
done
very
well
in
the
mid
cap.
Part
of
the
market.
E
E
They
had
some
equities,
they
had
some
non-us
bonds.
Here,
thankfully,
double
line
was
positive.
Lord
abbott
negative
with
a
high
yield
portfolio,
but
then
you
can
see
this
is
sort
of
the
rescue.
This
is
the
most
valuable
player
over
the
last
year.
Definitely
hoisington
up
29.7
and
even
though
these
did
underperform
their
benchmark.
These
three,
the
return
here
allowed
our
total
fixed
income
allocation
outperformance
benchmark.
Not
only
that,
but
it
ranked
in
the
first
percentile
of
that,
the
global,
fixed
income
manager
and
by
global
that
means
worldwide.
E
E
E
E
Do
outperform,
but
this
just
hasn't
been
the
case
over
the
last
10
years.
This
is
our
five-year
correlation
matrix.
You
can
see
some
negative
correlations
here.
That's
the
the
the
diversifying
portfolio
which
we
have
in
place
and
you'll
see
here
that
we
have
two
managers
that
are
on
alert.
I
don't
think
that
we
want
to
make
any
changes
again.
We've
been
with
hotchkiss
for
a
long
time,
they're
part
of
an
overall
portfolio
structure.
E
The
portfolio
is
thoroughly
researched,
very
underpriced
and
actually
is
is
unappreciated
by
the
rest
of
the
marketplace
and
then
the
same
with
causeway,
although
their
performance
has
not
been
as
problematic
as
hotchkisses,
but
still
think
that
they're
a
good
manager
going
forward
and
then
fees.
We
always
want
to
take
a
very
close
look
at
this
and
make
sure
that
we
are
at
very
low
fees.
Our
biggest
portfolio
is
a
vanguard,
500
index
and
it's
four
basis
points.
E
Category
average
is
88,
so
we're
saving
a
lot
of
money
here
when
we
do
a
weighted
average
across
the
board,
our
expense
ratio
helped
by
the
index
funds.
There's
no
doubt
about
that.
It's
48
basis
points
do
the
same:
weighted
average
calculation
for
the
category
average
and
we
have
1.18
so
we're
70
basis
points
cheaper
than
the
median
of
the
funds
available
to
us,
and
that
saves
almost
a
quarter
of
a
million
dollars
per
year.
E
E
D
D
A
Motion
passes
four
to
zero.
All
right
next
item.
We
received
the
presentation,
discussion,
item
five
discussion
and
consider
approval
additional
asset
allocation
or
changes
to
portfolio
managers,
as
recommended
by
the
board
investment
consultant
from
my
discussion
with
doug
and
our
staff.
We
have
no,
we
do
not
have
any
intended
changes
at
this
time,
so
we'll
go
to
item
six
and
as
a
request
to
approve
a
request
for
proposal
for
custody
services,
and
I
believe
matt
boggs
may
have
a
little
few
comments
on
this.
F
This
was
2015,
the
the
winning
proposal
was
bank
of
oklahoma
and
we
are
in
the
last
year
of
our
five-year
agreement
with
bank
of
oklahoma
for
custody
services,
and
so
essentially,
what
this
would
do
is
just
authorize
us
to
go
out
for
rfp
once
again
and
to
give
you
an
idea
of
what
the
process
would
look
like
from
here
and
if
this
gets
approved
this
morning,
we
would
go
out
for
a
advertisement
for
this
rfp
and
a
rfp
selection
committee
would
be
formed.
The
rfq
would
be
open
for
about
a
month.
F
At
that
point,
the
selection
committee
would
look
over
the
proposals
and
our
anticipation
would
be
to
come
before
you
in
the
november
meeting,
with
a
request
to
negotiate
a
contract
for
the
custody
services.
And
so
that's
what
you
have
before
you
this
morning
and
I'd
be
happy
to
answer
any
questions
you
might
have.