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From YouTube: Oklahoma Post Employment Benefits Trust - 2-13-2022
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A
A
I'll
we'll
take
another
look
at
that
in
a
moment,
but
going
on
to
the
next
slide,
you
see
performance
value,
outperformed
growth,
even
during
the
fourth
quarter,
but
you
look
out
over
the
last
year,
valued,
although
at
a
loss,
outperformed
growth
by
tremendous
margins
and
I
think
I
remember
two
years
ago
saying
this
growth
Market
rally
the
thing
stocks
that
was
the
buzzword
at
the
time:
Facebook
Amazon,
Apple,
Netflix
and
Google.
This
cannot
go
on
forever,
because
75
percent
of
the
Market's
return
was
generated
by
those
five
companies,
and
that
was
unsustainable.
A
It
looked
like
it
would
go
on
forever.
It
felt
like
it
would
probably
go
on
forever
and
if
you
were
going
to
take
a
look
at
value
stocks,
I.E,
Banks,
insurance,
company
and
energy,
you
would
have
thought.
Why
are
we
looking
at
this?
Those
are
those
companies
are
past.
Their
Prime
will
never
have
any
they'll
never
generate
the
returns
that
these
technology
companies
will
now
go
on
to
the
next
slide
and
we
can
see
what
happened
to
those
technology
companies.
A
So
when
we
look
at
the
Russell
1000
communication
Services
down
for
the
year,
which
is
the
lighter
column,
40
percent,
40
percent
of
that
sector
is
I,
believe
Facebook
and
Amazon
I.
Think
they're
quote
they're
classified
very
strangely,
but
40
of
that
index
is
damn,
but
that
an
entire
index
is
down
40
on
the
year
you
look
at
consumer
discretionary.
Obviously,
a
slowing,
uncertain,
Market
environment
does
sell
off
also
down
36
percent
Consumer
Staples.
A
We
have
to
have
those
so
they're
Dan,
just
not
as
much
not
nearly
as
much
and
then
energy
the
one
standout
player
right.
If
there
was
one
thing
that
folks
were
very
worried
about
last
year
and
we
saw
Energy
prices
go,
you
know
above
a
hundred
dollars
a
barrel
of
WTI,
we
saw
natural
gas
prices
explode
to
that's,
probably
not
to
go
much
higher,
very,
very
yeah
I,
don't
I!
Don't
like
this?
Let's
just
let's
use
a
different
adjective
on
that
adverb.
A
Sorry,
but
as
we
we
verb
as
as
it
went
higher
as
pipelines
had
problems
under
you
know
see
if
we
had
other
issues
about
how
is
Germany
and
the
rest
of
of
Europe
going
to
heat
themselves.
Much
less
run
into
this
run.
Industry
we
saw
natural
gas
prices
go
extremely
higher
in
the
United
States.
We
saw
them
go
from
under
two
to
about
nine
for
a
brief
period
of
time,
the
price,
but
in
Europe
we
saw
them
go
over
120
dollars
for
the
same
price
equivalent
in
the
United
States.
A
Now
it's
down
to
less
than
20,
because
the
winter
has
been
very,
very
mild,
but
I
think
long
story
short
the
things
that
led
the
market
two
years
ago
in
simpler
times
in
more
stable
times,
if
you
will
definitely
have
taken
the
back
seat
during
the
last
year.
If
you
look,
there
were
two
sectors
last
year
that
had
positive
returns
in
the
Russell
1000
energy
up
64
and
a
half
percent
right
leagues
ahead
of
everybody
else,
and
then
utilities,
which
is
the
most
defensive
sector
up.
1.3
percent
utilities
are
paid,
pay
a
decent
yield.
A
So
it's
probably
around
four
percent.
Now,
but
even
they
on
a
capital
appreciation
came
back
a
little
bit
last
year.
So
when
you
look
at
the
U.S
Equity
market,
energy
or
nothing,
that
was
the
only
place
that
performed
well.
So
next
slide
shows
the
performance
of
the
top
10
weighted
stocks.
And
if
you
look
at
these
Apple
down,
26
percent
Microsoft
down
28
percent
for
the
one
year
column
there
Amazon
down
50
percent
Berkshire
Hathaway,
can't
get
much
more
basic
than
that
right.
3.3
percent,
positive
return
and
then
alphabet
which
is
Google
down
39.
A
If
you
look
there
meta
is
not
even
in
the
top
ten
anymore.
That's
Facebook
Facebook
was
down
70
percent
last
year.
It's
come
back
quickly
this
year,
but
it
was
one
of
the
biggest
losers.
If
you
look
at
the
bottom
10
performers,
you
can
see
some
really
dramatic
losses
here,
and
these
are
companies
that
we
were
looking
at
a
few
years
ago.
Being
industry
leaders
right
carvana
right,
that's
the
you
know
we'll
buy
whatever
used
car
you
have
and
then
we'll
resell.
A
It
wework
one
of
my
favorites
right,
they're
gonna
re
completely
reconfigure
the
office
real
estate
market
in
in
the
world
down
83
percent
last
year
and
then
Tesla
down
65
percent.
Now
we
look
at
the
top
performers
Therapeutics.
Obviously
some
of
those
are
great.
You
see
discount
retailers
like
Burlington,
and
then
you
see
Halliburton
right
and
Halliburton
was
a
great
performer
during
the
quarter,
but
a
great
performer
for
the
year.
So
I'm
calling
it
Back
to
Basics
I'm
saying
that
cash
is
an
investment.
An
option.
A
Matthew
and
I
have
talked
about
the
cash
that
is
being
held
outside
of
the
of
the
Investment
Portfolio,
because
if
you
look
at
checking,
accounts
balances
they're
getting
about
half
a
percent
income
right
now
or
yield
on
them,
but
the
money
market
fund
that
it's
invested
in
it's
not
in
cash
money.
Market
fund
is
a
little
bit
more
than
four
percent
and
if
you
think,
on
a
million
dollars,
I'm
going
to
get
a
half
percent
or
four
percent-
that's
pretty
meaningful
increase,
and
luckily
it's
been
in
there
the
entire
year.
A
So
next
slide
International
Equity
performance,
sort
of
paralleled,
the
US,
except
for
it's
a
little
bit
worse,
the
first
three
quarters
of
the
year
and
a
little
bit
better
during
the
fourth
quarter
of
last
year.
Big
picture
right
now
when
it
comes
to
International
markets,
is
obviously
China.
China's
reopening
China
coming
back
into
the
market,
is
going
to
have
supply
and
demand
implications.
A
But
right
now
I
think
that
one
thing
in
the
back
to
basics,
the
world
is
short
oil
production
capacity.
If
China
comes
back
on
strong,
like
they,
they
might
be
expected
to,
so
there
will
be
Supply
pressures.
Europe
was
able
to
get
natural
gas
to
heat
themselves
this
year,
but
the
other
effect
was
there
were
other
countries
that
weren't
able
to
like
Thailand
weren't
able
to
get
the
natural
gas
that
they're
normally
used
to
because
they
were
bid
out
by
Europe.
A
So
next
slide
I'm
not
going
to
go
over
this
I'm
going
to
go
one
more
fixed
income.
This
will
be
a
year
that
lives
in
infamy
in
the
bond
markets.
Bonds
are
simple,
Securities
right.
They
have
a
it's
a
loan
that
you're
making
to
someone
in
a
secured
High
spaces.
A
bond
is
simple
right.
You
don't
have
earnings,
you
don't
have
margins,
you
don't
have
anything
else.
A
You
have
I'm
going
to
loan
someone
or
somebody
or
something
a
hundred
dollars
for
a
specified
period
of
time
during
that
period
of
time,
I'm
going
to
be
paid
a
rate
of
interest
and
at
the
maturity
of
that
that
period
of
time
I'm
going
to
get
my
hundred
dollars
back.
That's
it
very
simply
in
cases
like
that,
Securities
like
that,
we
do
not
often
see
bonds
going
down
this
much
right.
I
think
I
mentioned
the
two
times
in
American
history.
Where
they've
been
down
this
much
and
they
were
existential
threats
to
the
United
States.
A
It
was
not
a
a
year
where
we
had
seven
percent
inflation.
It
was
like
we
don't
know
if
the
government's
going
to
be
around
to
pay
pay
these
off.
When
they
come
due,
so
I
think
the
Bond
Market
may
have
over
over
overreacted
to
some
of
the
issues,
but
that's
also
what
the
bond
market
does.
A
We
look
at
the
quarter.
Things
finally
started
to
come
around
nicely,
but
the
aggregate
Bond
index
for
the
year
was
down
13,
that's
our
normal.
Our
main
Benchmark
here
treasuries
were
down
12
and
a
half
percent
mortgage
is
down
11.8
corporate
bonds
down
15-8
high
yield
we're
down.
11.2
Which
is
less
and
there's
a
couple
of
reasons
why?
But
but
Ironically
in
a
year
that
the
bond
market
sold
off.
A
You
had
corporate
bonds,
there
were
investment
grade
and
you
had
corporate
bonds
that
were
below
investment
grade
below
investment
grade
bonds
performed
better
that's
because
they
have
shorter
duration
and
they
pay
more
income,
and
that's
why
they
did
better.
It
was
a
year
that
in
the
next
slide,
please,
where
we
saw
the
yield
curve
we
on
the
bottom
there
you
can
see
the
treasury
yield
curve.
This
shows
you
the
yield
of
Treasury
Bonds
on
various
maturities
at
four
different
dates.
So
the
first
one
or
the
lowest
one
is
the
is
331
of
last
year.
A
So
this
is,
you
know
the
very
beginning
of
the
interest
rate
hiking
cycle,
and
you
can
see
that
the
yield
curve
was
fairly
normal.
It
was
low,
but
it
was
fairly
normal
with
a
yield
of
25
basis
points
at
the
front
end
and
two,
and
about
two
and
a
half
at
the
30
year.
Now
look
at
the
yellow
line
there.
That's
very
interesting
where
the
one
month
went
from
25
basis,
points
to
about
425
basis
points.
A
That's
a
rapid
increase
in
interest
rates
by
the
Federal
Reserve,
trying
to
reduce
inflation
in
the
economy,
and
so
that's
one
thing.
The
other
thing
that's
very
interesting
here
is
that
the
yield
curve
is
inverted,
meaning
that
you
can
make
more
money
lending
someone
six
months.
Then
you
could
lending
somebody
for
seven
years
right.
A
What
does
that
make
people?
Do
I'm
not
going
to
lend
money
to
anybody
for
seven
years,
I'm
going
to
do
a
very,
very
short
term,
and
so
that
has
a
slowing
effect
and
I.
Think
the
old
saying
is
that
an
inverted
yield
curve
is
predicted.
Seven
out
of
the
last
five
recessions,
meaning
it
does
not
always
precede
recessions,
but
it
usually
does
so.
This
is
some
sense
of
economic
slowing
in
the
future.
A
Just
because
the
way
the
markets
work
the
way
the
markets
fund
themselves,
so
that
is
the
long
and
short
story
of
the
market
environment.
If
we
could
go
to
the
portfolio
report
itself,
like
I
said,
this
is
a
very
difficult
year
down
17
percent.
This
is
one
of
the
most
difficult
years
that
I've
ever
seen
as
an
investor
as
an
advisor
to
folks
like
yourselves,
this
feels
as
bad
as
the
2008-2009
period.
A
The
great
financial
crisis,
where
it
felt
like
the
world's
Financial
system,
was
going
off
a
cliff
and
we
didn't
know
if
it
was
going
to
be.
There
I
think
it's
going
to
be
there.
We
might
have
a
slower
economy.
This
year
we
started
with
interest
rates
very,
very
low,
which
was
punishing
for
the
bond
portfolio.
But
if
there's
one
positive,
that
I
will
say
out
of
this
expected
returns
for
60
40
portfolios
at
the
beginning
of
last
year,
given
how
low
bond
yields
were
and
how
high
or
how
expensive
stocks
were.
A
A
So
I
guess
that's
the
shiny
side
of
the
penny
that
we
just
picked
up
on
the
sidewalk
there,
but
that's
we're
we're
not
invested
exclusively
in
those
two
asset
classes.
We're
Diversified
beyond
that
and
I
think
that
this
year
it
helped
us
in
ways.
I
certainly
didn't
expect.
So
next
slide
Will
Go
On.
Here
you
can
see
that
over
time
the
strategy
has
worked
right.
The
long-term
asset
allocation
has
increased
the
value
of
the
portfolio
at
this
point
at
the
end
of
last
year
was
85.6
million
dollars.
So
this
is
December
31..
A
This
goes
all
the
way
back
to
2009.
We
started
with
6.018
million
dollars
and,
as
we
ended
the
year
85.6
over
that
period
of
time
we've
seen,
151
million
dollars
contributed.
We've
seen
105
million
dollars
pulled
out.
We
have
seen
gains
on
market
value
or
capital
appreciation
of
33.3
million
dollars.
The
ending
market
value
is
right.
There
we've
also
seen
income
of
11.1
million
dollars
and
hopefully
in
the
future
we
will
see
a
larger
contribution
of
income
to
the
total
return
here.
So
over
the
entire
period
of
time,
the
cumulative
return
has
been
140
percent.
A
A
That
was
the
first
time
we
saw
that
now
we
saw
a
strong
rebound
during
the
fourth
quarter,
thankfully,
and
that
52
million
dollars
is
the
net
I.
Guess
you
call
that
the
Corpus
that
has
been
or
the
net
of
all
positive
cash
flow
over
time,
so
the
amount
in
total
contributors,
52
million
dollars.
We
still
have
85.6
after
what
I
would
consider
one
of
the
worst
years
that
we've
ever
seen
next
slide.
Please
asset
allocation
has
been
roughly
stable.
It's
been
stable
over
time.
A
You
can
see,
we
started
out
slow
with
less
domestic
equity
and
we
supplanted
that
with
fixed
income,
because
again,
2009
was
a
period
where
we
didn't
know
what
was
going
to
be
happening.
Next
next
slide
is
our
asset
allocation
here,
so
we
have
63
percent
domestic
Equity
16
core
fixed
income.
We
have
11
percent
in
non-us
equities,
so
our
total
allocation
to
equities
is
about
75
percent.
We're
active
that
way.
A
We
are
more
in
equities
than
a
lot
of
folks
and
actually,
ironically,
last
year,
having
16
of
fixed
income
didn't
help
us
as
much
as
we
thought
it
would.
So
that's
one
of
the
reasons
that
we
have
that
return.
You
can
see.
We
have
a
couple
of
other
fixed
income
allocations
and
then
0.2
percent
in
cash.
This
is
Cash
in
the
Investment
Portfolio
Matt.
How
much
is
in
the
outside
of
the
Investment
Portfolio.
A
It
didn't
so
outside
of
this.
We
have
the
cash
buffer,
which
is
about
two
million
dollars
which
which
allows
us
to
not
to
have
to
hit
this
portfolio
on
a
quarter
by
quarter
basis.
The
next
slide,
please
is
our
manager
allocation.
Here
you
can
see
largest.
Is
our
S
P
500
Index
Fund,
then
our
International
Equity.
Then
we
have
small
cap,
us
equities,
mid
cap,
us
equities
and
then
Bond
portfolios
managed
by
limit
sales
double
line
Hoisington.
A
Well
then,
we
have
our
mid
cap
portfolio
and
then
the
Lord
Abbott
high
yield,
so
at
the
very
top
of
the
portfolio
is
a
passive
exposure
to
the
U.S
Equity
Market
bonds.
Much
lower,
we
have
half
of
our
mid
cap.
Exposure
is
indexed
because
we
kind
of
went
round
and
round
trying
to
find
the
right
manager
there
for
a
while
all
of
our
International
Equity.
All
of
our
small
cap
is
actively
managed,
as
is
our
Equity
portfolios.
Next
slide,
please.
A
B
C
D
D
B
A
You
trustee
Barry,
that's
that's
been
an
I
guess,
a
evolving
area
and
I
think
it's
smart
to
have
that
much
cash
on
the
outside,
because
in
a
worst
case,
environment
I
would
rather
have
that
and
not
have
to
tap
assets
when
they're
down.
So
looking
at
the
portfolio
here,
not
a
lot
of
surprises
right.
You
have
more
Equity
than
most
funds
out
there,
because
this
plan
has
a
very
long
time.
Horizon,
possibly
exceeding
our
own
lifespans.
For
the
quarter
portfolio
was
great.
It
had
Equity
exposure,
it
did
very,
very
well.
A
It
had
International
Equity
exposure
which
helped
it
so
overall
it
was
up
7.81
percent,
which
outperforms
its
benchmarks
and
ranked
in
the
fourth
percentile
of
its
pure
Universe
first
highest
100th
lows
now
remember
if
you're
in
the
top
five
percent
during
the
sharp
recovery
don't
be
surprised
if
you're
in
the
bottom
percent
bottom
five
percentile
during
the
market
decline
right
that
there's
no
magic
bullet,
we
do
what
we
can,
but
in
a
market
environment
where
almost
everything
went
down
last
year,
you
have
Market
exposure
you're
going
to
go
down
so
the
loss
you
can
see
down.
A
16.95
now
going
to
the
quarter
going
back
to
the
quarter,
you
can
see
that
our
fixed
income
exposure
was
up
1.1
percent.
We
had
widely
dispersed
returns
there,
Loomis
sales
2
2.81
percent-
well,
thankfully
all
but
one
we're
we're
positive.
Second
percentile
double
line
bond,
which
is
a
more
macro
oriented
portfolio
1.13,
but
they
ranked
in
the
92nd
percentile
and
then
Lord
Abbott
down
3.75
in
the
71st
first
percentile
and
then
also
I
I.
A
Don't
has
said
irony
once
I,
don't
want
to
use
that
word
again,
but
surprisingly,
Hoisington
was
down
1.95
and
they
had
an
absolutely
rotten
year.
Last
year,
they're
economists,
the
biggest
economic
surprise
last
year,
was
that
inflation
was
not
transitory.
It
fooled
the
Federal
Reserve,
it
fooled
the
treasury
Department,
it
fooled
Wall
Street.
It
fooled
these
folks
too,
although
their
rationale
still
appears
to
be
sound
going
forward
because
they
are
expecting
a
Slowdown,
it
did
not
help
their
portfolio
a
bit.
That's
why
we
have
a
reasonably
small
allocation
here
and
in
Market
environments.
A
In
the
past,
where
equities
went
down,
this
portfolio
went
up
in
the
opposite
or
if
the
market
was
down,
equities
were
down.
20
this
portfolio
would
be
up.
20
I'll
show
you
and
an
example
of
that
in
just
a
moment,
but
in
this
case
because
inflation
was
driving
the
market
uncertainty
on
the
equity
side,
it
also
hurt
this
portfolio,
which
is
invested.
A
hundred
percent
in
U.S
treasury
bonds.
B
So
Doug
I'm,
looking
at
the
Historical
information
for
Hoisington
and
they've,
historically
underperformed
The
Benchmark-
pretty
significantly.
Yes,
are
they?
Are
they
on
the
watch
list.
A
I,
don't
recall
if
they
are
I
think
we
talked
about
it
last
quarter
and
I.
Don't
have
a
paper
report
in
front
of
me.
Can
we
wait
until
we
get
to
that
part?
If
not,
they
should
be
yeah
yeah
and
before
we
move
on
to
that,
can
you
move
two
slides
forward?
A
This
is
one
part
of
the
picture
that
you
don't
see
because
last
year
was
so
awful.
Hoisington
has
always
been
a
very
volatile
manager,
they
own
long
duration,
U.S
treasuries,
which
have
the
highest
volatility
within
the
bond
market.
Sometimes
that's
bad
volatility.
Sometimes
it's
good
volatility.
So
you
look
down
here.
You
can
see
the
year
to
date,
gosh
I,
hope,
I,
never
see
a
return
like
that
out
of
the
bond
market,
anything
that
pays
interest
and
has
maturity
date,
much
less
U.S
treasuries.
I.
Don't
ever
want
to
see
that
again,
but
you
look
at
2021.
A
They
were
down
4.9,
which
was
bad
too,
but
you
look
at
2020.
You
look
at
2019.
You
look
at
those
returns.
That's
what
they're
capable
of,
unfortunately,
those
two
years
that
we've
had
recently
completely
obliterate,
that
from
the
record
that
we
look
at.
If
we
stop
it
and
look
back
from
12
31.,
so
it's
unfortunate
that
they
were
down
that
much,
but
they
do
have
some
utility
in
the
future.
I
want
to
make
sure
that
they
know
that
we're
watching
them
very
carefully.
So.
B
A
No
nothing
this.
This
happens
to
be
probably
the
simplest
investment
strategy
that
we
have.
They
look
at
the
future
of
interest
rates,
which
is
the
future
of
inflation
and
they
construct
their
portfolio
to
produce
an
absolute
return.
Based
on
that
forecast.
They
expect
a
slowing
economy,
which
means
that
they
will
own
30-year
treasuries.
A
A
If
it
goes,
if
interest
rates
go
up,
one
percent
that
portfolio
will
be
down
18.
If
interest
rates
go
down,
one
percent
portfolio
will
gain
18.
So
it's
a
higher
volatility
strategy
and
in
other
cases,
I
mean
2020.
You
remember,
you
know
that
was
the
first
year
of
covid
and
the
equity
markets
went
down
dramatically.
They
went
the
opposite
direction,
but
these
are
all
great
questions
and
things
that
do
keep
me
up
at
night
about
Hoisington.
A
If
they're
not
on
the
watch
list,
they
definitely
should
be,
but
I
wanted
to
make
sure
that
we
had
the
whole
picture.
Endpoint
sensitivity
when
you're
looking
at
returns
is
real
right.
If,
if
before
we
turn
to
this
slide,
if
I
said
you
know,
they
were
up
20
in
2020
and
17
in
2019
that'd
be
hard
to
believe.
A
Looking
at
that,
2022
look
back,
but
it
is
the
case.
So
thank
you
for
your
patience
on
looking
through
that
one.
It's
a
it's,
not
a
simple
issue,
although
that
is
the
simplest
portfolio
we
have.
So
could
you
get
back
to
two
slides?
Please
thank
you.
So
that's
our
bond
portfolio,
our
Equity
portfolio
for
the
quarter,
was
up
8.41,
that's
for
the
year
down
17.57,
so
we
definitely
did
not
close
the
year
at
the
lows.
A
If
we
look
down
the
first
three
portfolios,
you
can
see
the
for
the
fourth
quarter
and
again
the
S
P
500
is
by
far
the
largest
one.
It's
almost
one.
It's
a
little
bit
more
than
one-third
of
the
assets,
31
million
dollars
up
7.56
57th
percentile,
which
is
about
what
we
would
expect
and
then
18.13
loss,
which
is
slightly
worse
than
the
Benchmark
again
acceptable
ranges
same
is
true
for
the
index
fund,
but
I
always
like
to
have
at
least
one
positive
thing
to
look
at,
and
that
would
be
Hotchkiss
and
Wiley
Hotchkiss
and
Wiley.
A
Two
years
was
the
one
who
was
investing
in
things
that
would
never
go
up
again.
Their
portfolio
is
unchanged.
They're
patient
portfolio
is
still
relatively
cheap.
There
is
a
lot
of
energy
in
this
portfolio,
both
literally
and
figuratively.
Their
largest
positions
are
in
the
energy
complex,
so
we
do
have
a
portfolio
that
is
actually
positive
for
the
year
1.78,
while
its
index
is
down
12..
A
A
They
don't
know
what
they're
doing
it's
time
to
to
get
rid
of
them.
If
we
do
need
to
take
money
from
a
portfolio
this
year,
this
will
be
the
one
right.
We
will
be
taking
profits
from
it
and
that's
part
of
our
discipline.
So
the
next
slide
we're
going
to
go
on
to
two
of
the
other
Equity
portfolios
and
again
the
Stevens
small
cap
portfolio.
It
was
slightly
worse
than
their
Benchmark
over
the
last
three
years,
five
years
and
seven
years,
they're
above
median
and
their
Universe.
A
This
is
not
a
hyper
aggressive,
small
cap
growth
portfolio
and
we
like
it
that
way.
But
then
look
at
our
Causeway
International
value
fund,
remember
I,
said:
equities.
International
equities
came
back,
they
stormed
back
during
the
fourth
quarter,
and
you
can
see
that
this
one
was
even
a
little
bit
more
than
that.
So
11
of
the
portfolio
is
up
22
percent
during
the
quarter.
A
That's
a
remarkable,
remarkable
Snapback,
but
also
remember
that
when
markets
recover,
when
they
turn
the
corner
from
bear
Market
to
bull
market,
it's
the
early
stages,
where
you
see
the
most
dynamic
returns
so
their
last
year,
they're
down
6.76
percent,
which
is
20th
percentile.
That's
a
lot
of
of
time
spent
on
returns.
Do
you
have
any
more
questions
before
I
move
on?
A
Thank
you,
I'm,
going
to
jump
ahead
a
few
slides
here.
So
this
is
our
one
of
our
bond
portfolios.
A
little
bit
of
volatile
return.
You
can
see
that
the
returns
are
higher
on
the
scatter
plot,
but
they
are
a
bit
more
volatile
and
that
was
good
for
them.
Last
quarter
next
slide
shows
one
more
double
line,
which
is
a
little
bit
different.
A
Lord
Abbott!
This
is
our
High
Yield
Fund
again
it
was
one
of
our
better
performers
for
the
year
keeping
a
little
watch
on
them.
They
haven't
had
any
major
Personnel
changes,
but
I
don't
like
the
deterioration
when
the
blue
line
goes
down.
That's
that's
not
good,
so
keep
any
extra
eye
on
them
right
now
and
then
one
more
one
more
please.
A
A
A
So
we
have
one
year
history
there
going
on
to
the
Hotchkiss
and
Wiley
portfolio
on
the
lower
left
hand
side
you
can
see
when
the
blue
line
was
at
the
bottom.
That
was
when
we
were
when
I
was
pulling
my
hair
out.
We
were
very
impatient
with
them,
but
knew
they
had
a
good
process.
They
had
a
good
process,
they
had
good
patience,
they
had
good
personnel,
and
so
now
what
we
see
is
they
have
gone
from
the
poorest
to
the
best.
B
A
Again,
it's
important
to
pair
portfolios
like
this
back
when
they
do
well
and
add
to
them
when
they're
not
doing
well
sort
of
those.
The
same
I'd
say
the
same
thing
about
Hoisington
and
then
next
here
next
manager,
Index
Fund
doing
exactly
what
it
should
on
the
mid
cap
side
and
then
the
one
more
you
can
see
our
Russell
2
or
this
is
our
small
cap
growth
portfolio.
A
You
can
get
pretty
aggressive
in
small
cap
growth
I
tend
to
be
want
to
be
less
aggressive
in
the
really
volatile
asset
categories
and
that's
the
portfolio
that
we
have
here
and
and
I
like
it,
I
like
to
be
less
aggressive
with
higher
Returns
on
the
risk
return
plots
there,
the
the
the
scatter
plot,
with
the
two
dots
on
it,
there's
no
better
place
to
be
than
where
they
are
on
the
left
hand
side.
So
that
means
higher
return
and
lower
volatility.
That's
exactly
where
you
want
to
be
so.
A
I
think
we're
getting
really
close
to
the
end
here,
but
I
need
to
highlight
a
couple
more
things:
one
more
actually
Causeway
great
recovery
during
the
fourth
quarter.
Another
one
please!
So,
let's
go
some
more
here,
another
one,
so
this
is
our
table
of
correlations
over
the
last
five
years.
This
means
how
do
our
assets
perform
versus
one
another
when
one's
up
are
they
all
up
or
is
there
one
or
two
that
are
down
in
the
last
year?
We
saw
really
high
correlations,
because
both
stocks
and
bonds
are
down.
That's
unusual.
A
If
you
look
at
the
column,
the
fourth
one
over
called
Hoisington.
If
you
take
a
look
at
that,
you
actually
have
negative
correlations,
albeit
small.
Let
me
explain
the
scale
the
scale
is.
1.00
means
perfect,
positive
correlation
right
if
one
asset
goes
up,
ten
percent,
the
other
one's
up,
ten
percent,
if
it's
negative
1.0,
that's
perfect,
negative
correlation,
meaning
if
one's
up
10
the
other
one
will
be
down
10.
we
like
to
have
negative
correlations
on
assets,
because
that's
diversification.
A
So
next
slide
again
update
this
one
to
on
notice
or
on
watch
sorry
for
Hoisington
I
guess
they
would
be
surprised
if
we
weren't
taking
some
notice
on
the
portfolio
and
then
fees
fees
are
very,
very
important
here.
The
expense
ratio
on
a
weighted
average
basis
is
44
basis
points.
The
average
of
those
categories
when
we
total
it
up
at
our
asset
allocation
would
be
90
basis
points
which
means
that
we
are
46
basis
points
less
expensive
than
average,
so
we're
paying
half
of
average
in
the
mutual
fund
world.
A
Right
now
we
are
below
in
every
category
except
for
Hoisington,
which
is
slightly
above
and
makes
me
watch
them
even
closer.
So
at
the
total
market
value
at
the
end
of
the
quarter,
which
was
85
86
million
dollars,
the
annual
savings
through
selection
of
low-cost
funds
is
352
thousand
dollars.
So
that's
good
and
then
I
think
that
is
it
for
the
quarterly
report.
Can
we
go
another?
This
is
the
dashboard
where
essentially
nice,
surprise
is
here.
A
Can
we
do
the
131
first,
please
Perfect.
So
this
is
the
January
31
update
and
we
close
the
year.
You
can
see
positive.
We
had
a
positive
start
to
the
year.
Russell
1000,
Russell,
2000.
A
in
non-us
equities
and
even
and
even
fixed
income
was
at
a
nice
return
during
the
month
of
January.
Next
slide
shows
this
sort
of
spoiling
the
punch
here:
91.8
million
dollars
that's
one
month,
that's
a
good
month,
I'm
going
to
spoil
it
even
worse
and
say
that,
as
of
last
night,
we
were
still
at
91
million
dollars,
so
we've
maintained
that
that's
good
at
a
volatile
month
and
then
the
next
slide
shows
the
return.
So
the
month
7.18,
which
is
good
for
the
quarter,
we're
up
8.82
through
the
trail
in
one
year.
A
Can
you
believe
that
one
month
you
drop
one
month
off
and
we
go
from
a
loss
of
16.9
percent
to
a
loss
of
6.9
percent?
This
is
how
returns
work.
Remember
we're
looking
to
The
Far
Side,
the
three
years,
the
five
years,
the
since
Inception,
which
doesn't
change
much
at
all
over
time,
but
the
quarter
was
strong.
You
look
at
our
bond
portfolios
for
the
month.
You
can
see
we're
up
anywhere
from
3.09
to
6.47.
A
You
can
see
that
when
we
look
at
with
all
those
our
bond
portfolio
for
the
for
the
year
to
date,
up
4.57,
which
is
the
month
but
for
the
quarter,
the
bond
portfolio
is
having
eight
point,
one
two
percent
and
who,
of
course,
is
the
leading
performer
there,
the
most
volatile
manager,
it's
Hoisington
up,
12.76
percent,
again
slowing,
uncertain
economy,
they're
going
to
do
better
when
we
look
at
our
the
rest
of
our
portfolio
on
the
equity
side,
up
6.41
for
the
quarter
and
again
Usual
Suspects
lead,
Hotchkiss
and
Wiley
again
energy-based
portfolio.
A
A
You
know
we're
hearing
a
lot
of
scrutiny
on
the
big
energy
companies
right
now
you
know
you're,
making
all
this
money
and
you're
not
going
to
you
know
drill
any
new
wells
or
or
anything
back
you're.
Just
going
to
reward
shareholders,
and
that's
probably
going
to
continue
to
happen,
the
one
thing
that
I
did
ask
Stan
about
is
share
BuyBacks,
which
is
a
popular
way
to
reward
shareholders.
When
things
are
good,
there's
a
one
percent
tax
on
share
BuyBacks
right
now
for
domestic
companies.
A
He
said
that
could
go
up,
but
if
that
were
to
happen,
they
would
probably
shift
the
balance
between
share
BuyBacks
and
dividends.
So
there
are
multiple
level
levers
there
and
I
did
remind
Stan.
Also
that
don't
fall
in
love
with
energy.
There
are
other
cheap
parts
of
the
marketplace
out
there
and
he's
absolutely
value.
Managers
can
be
that
way
once
they
find
once
they
hold
a
trade
for
a
while
think
about
it.
He's
held
these
for
five
years.
They've
only
performed
great
in
the
last
two.
He
sees
a
lot
of
Runway
ahead
of
them.
A
It's
very
tempting
for
the
investors
mindset
to
say
this
is
just
going
to
go
on
forever
and
then
you
can
see
Causeway
had
another
great
month
and
that
led
to
26
return
for
the
quarter
and
very
interestingly
enough.
We
have
two
portfolios
with
positive
returns
for
the
12
months
ended
131,
which
is
a
remarkable
turn.
Those
are
both
value,
they're,
both
Equity
managers,
and
that
is
kind
of
what
you
do
see
when
markets
turn
from
dramatic
downturns
to
Rises.
A
Just
a
minute
on
the
market
slides
here,
I'll
take
just
a
couple
of
minutes
here,
put
some
things
in
perspective:
this
is
long-term
Market,
history,
I
think
we've
been
through
this.
We
are
still
you
know.
We
have
drawdowns,
we
have
increases
and
over
time
the
market
does
go
higher
because
of
what
it
represents
next
slide.
This
is
the
bond
market
right.
It's
going
to
take
a
while
longer
for
the
bond
market
to
recover,
but
it
has
recovered
quickly
in
the
past.
A
The
bottom
of
the
bond
market
to
climb
10
and
a
half
34
and
a
half
and
12.55
percent,
so
the
returns
can
be
strong
going
forward
and
we've
kind
of
seen
some
of
that
next
slide,
I
think
I'm
going
to
end
with
this
one.
This
is
a
scatter
plot,
so
this
shows
you
in
return.
Space
What
returns
generally
look
like
for
the
U.S
Equity
investor
and
that's
assuming
that
you're
too
big
enough
two
biggest
asset
classes
or
S
P
500
and
the
aggregate
Bond
Index
right.
A
So
the
vertical
shows
you
the
return
of
the
S
P
500
for
each
of
these
years,
so
1985
or
1982.
That
return
was
about
21
right
the
where
and
then,
if
you
look
at
the
horizontal
axis
from
left
to
right,
that
shows
you
the
return
of
the
bond
market.
So
when
I'm
looking
at
these
years,
1982
the
equity
Market
was
up
20,
the
bond
market
was
up
32
percent
right.
That's
what
that
shows
you
in
this
case.
The
best
place
to
be
is
the
North
East
quadrant,
as
you
look
at
it.
So
that's
phenomenal.
A
Where
are
we
we're
22
2022
I
argued
that
that
dot
shouldn't
be
green,
but
that's
because
our
corporate
color
is
that
color
should
be
red.
No,
it
all
feels
that
way.
But
on
that
column
you
can
see
that
the
bond
market
was
down
18
and
the
stock
market
was
down
13.
again,
nothing
anywhere
near
that
even
in
2008,
which
was
the
financial
system
and
the
world
economy.
A
A
That's
a
good
question:
I
will
have
to
get
back
to
you.
I
can
get
back
to
you
before
I
leave
today,
but
it
is
if
we.
A
I
want
to
I
want
to
answer
that.
Give
you
a
good
question.
It
is
not
our
International
Equity
exposure
to
total
is
about
10
percent
I'm
going
to
ask
you
to
go
to
one
slide
for
me
really
quickly
and
it's
in
the
it's
in
the
1231
report.
It's
near
the
beginning.
A
Think
it's
a
wonderful
question
there,
so
this
is
The
Benchmark
index
that
Causeway
uses.
If
you
look
on
the
right
hand
side,
this
is
international
Equity,
so
we
use
what
is
called
the
acwi
index.
That
is
the
all
country
world
x-us.
So
it's
all
countries
in
the
world,
except
for
the
United
States,
and
it's
weighted
on
a
GDP
basis,
so
that
gray
column
tells
you
the
waiting.
A
That
is
my
approximation.
I
will
get
a
better
figure
for
the
for
you
before
I
leave
interesting.
When
we
look
at
that.
The
one
thing
that
comes
to
my
mind
is
when
you
have
China
at
9.2
percent
and
you
have
Taiwan
at
3.9
percent.
A
Those
two
might
go
negative
at
the
same
time
that
is
12
or
13
percent
of
the
28
percent.
That's
Emerging
Markets,
so
they're,
almost
40
percent
of
the
entire
Emerging
Markets
complex,
is
in
those
two
countries
which
I'm
cautious
on
them.
Right
now,
for
a
lot
of
reasons,
one
thing
also
to
notice:
there's
no
Russia
in
that
index
anymore.
If
you
remember
last
February
yeah
now
they
were
completely,
they
were
part
of
the
index.
A
It
was
relatively
small
last
year,
but
the
Morgan
Stanley
Capital
International,
that's
the
index
provider
said
you're
out
of
the
index,
which
means
that
you're
virtually
uninvestable
and
if
you
had
any
Holdings,
which
we
did
tiny
bit
in
Russia,
it's
still
been.
It's
been
marked
down
to
zero
and
you
still
cannot
trade
it.
A
F
Thank
you.
Okay.
If
there
are
no
other
questions
for
Doug
I
assume,
we
do
not
need
any
action
on
a
so.
Our
action
would
be
to
receive
the
monthly
investment
reports
for
November,
December
and
January.
I
will
entertain
emotion.
F
F
E
E
The
cafe
anymore,
no
I,
just
have
a
few
points
to
make
about
the
June
30
financial
report.
The
first
point
is:
if
you
look
on
page
one,
the
financial
report
was
giving
given
an
unmodified
opinion
from
the
Independent
Auditors,
which
is
what
we
want,
and
the
full
report
can
be
found
on
page
one
and
then
from
there.
If
you
can
turn
to
page
nine
and
the
statement
of
plan
net
position,
what
I
wanted
to
point
out
there
is
that
at
June,
30th
2022,
the
trust
reported
a
net
position
of
85.86
million.
E
This
is
a
decrease
of
11.6
million
over
the
same
period
when
the
net
position
was
97.47
million,
and
this
is
primarily
primarily
attributed
to
the
decrease
in
the
fair
value
of
Investments
of
11.57
million
that
at
that
point
in
time.
E
The
next
thing
I
would
like
to
talk
about
or
point
out,
is
the
funded
ratio,
and
if
you
can
turn
to
page
35,
they're
going
to
be
several
pages,
but
the
the
trust
funded
ratio
looks
at
how
much
Actuarial
liability
the
trust
has
versus
how
much
the
net
position
or
money
it
has
to
pay
that
liability
at
June.
30Th
katpa
could
pay
52
percent
of
the
liability
with
the
funds
that
it
has
and
that's
an
increase
of
3.9
percent
over
the
prior
year
ratio
of
48.1.
E
F
Or
do
you
want
to
let's,
let's
go
ahead
and
vote
on
our
acceptance
of
the
act
for
first.
F
Hey
we
have
a
motioned
and
a
second.
If
everyone
would
vote
the
actor
is
accepted.
Thank
you.
You
can
go
ahead
and
move
on
to
the
next
item,
which
is
the
acceptance
of
the
interim
financial
report
for
the
period
ended.
December,
31st,
2022.
I
hope
that
just
like
Doug
lifted
our
Spirits
with
the
monthly
report.
E
I
know
this
one
here:
I
only
have
one
point:
I
want
to
talk
about
and
it's
on
Page
Six
and
I'm,
just
turning
it
and
that's
the
statement
of
changes
in
plan
net
position
at
December,
31st
2022
the
report
that
the
report,
the
trust,
reported
a
net
position
of
86.75
million.
This
is
an
increase,
so
that's
great,
but
it's
only
an
increase
of
885
thousand
dollars
over
June
30th,
so
we
are
starting
to
see
an
increase
in
it.
E
This
is
attributed
to
1.61
million
in
net
investment
income
contributions,
13.03
million
offset
by
benefits,
paid
and
administrative
expenses
of
13.76
million,
and
that's
that's
all
I
have
for
December,
it's
very
short
and
sweet.
Okay.
Thank.
F
F
So
our
next
item
is
to
ratify
and
approve
the
issuance
of
a
request
for
proposals
advertised
by
the
City
of
Oklahoma
City
and
the
Oklahoma
City
Municipal
facilities
Authority
for
a
self-funded
and
fully
insured
medical
prescription
plan
for
the
City
of
Oklahoma
City
and
participating
public
trust,
employees,
retirees
and
eligible
dependents.
Effective,
January,
1,
2024.
I'd,
like
to
welcome
Jason
long
to
the
podium
Jason
has
appeared
before
us,
as
the
interim
Total
Rewards
manager
and
today
I'm
happy
to
present
him
to
the
trust
as
the
permanent,
inter
or
permanent
total
rewards
program
manager.
C
This
item
originally
appeared
on
the
January
17th
city
council
agenda.
It
was
a
joint
resolution
between
city,
council
and
ocmfa,
and
basically
this
item
is
just
to
ratify
and
approve
through
opeb,
the
issuance
of
the
medical
RFP.
C
C
F
But
I
do
want
to
say
that
in
the
event
that
you
were
to
find
something
in
the
RFP
that
was
of
concern
to
you,
I'm
sure
that
we
could
bring
that
forward
to
our
trustee
Amy
Madera,
and
she
would
make
sure
that
that
comment
was
incorporated
into
whatever
pre-proposal
conferences
or
negotiation
strategies
that
the
city
might
undertake
in
the
actual
final
product
of
that
benefit
package.
So,
while
it
is
necessary
for
us
to
keep
the
business
moving,
we
wouldn't
want
to
have
even
our
retirees
affected
by
the
elapse
in
those
services
and
benefits.
D
C
And
also
just
for
full
disclosure,
probably
for
the
I
guess
our
next
meeting
will
be
in
May.
There
will
be
an
items
out
there
for
not
only
the
mapd
to
ratify
that
RFP
proposal,
but
we
will
also
be
looking
at
a
proposal
to
ratify
our
group
Live
products
since
retiree
life
is
a
component
of
that
as
well,
so
that
should
be
on
the
next
agenda.
Thank.
F
Okay,
if
there
are
no
other
questions
or
comments
regarding
this
item,
I'll
entertain
a
motion
to
approve
and
sorry
ratify,
the
issuance
of
the
RFP.
It's
been
moved
and
voted.