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Description
The regular quarterly meeting, via video conference, of the Oklahoma City Oklahoma City Post Employees Benefit Trust for May 11, 2020.
C
A
C
F
B
C
F
Yeah
I'm
more
than
happy
to
so.
What
we
have
sent
out
already
is
the
331
report,
which
is
sort
of
the
not
quite
at
the
bottom
of
the
market,
but
it
was
fairly
close
to
it
if
we
look
back
over
the
year
so
far,
February
19th
or
so
there
abouts
market
hit
an
all-time
high
equity
market,
and
then
we
entered
the
sharpest
bear
market
of
recorded
history.
Market
appears
to
have
bottomed
so
far
as
of
March.
23Rd
and
equities
have
improved
significantly
since
that
again
we're
looking
at
the
major
issues
facing
the
economy
right
now.
F
Our
recession
government's
government
enforced
recession
actually
at
first
one
in
history
again
because
the
coronavirus
be,
what's
hopefully
how
that's
going
to
happen
and
then
I
think
one
area,
that's
especially
pertinent
to
us
and
Oklahoma,
is
the
joint
supply
and
demand
shock
to
the
oil
markets,
which
are
affecting
oil
prices,
because
Russia
and
Saudi
Arabia
decided
to
increase
production
at
a
time
when
oil
demand
or
oil
usage
has
gone
down
precipitously.
So
as
I
go
through
the
report,
I
think
the
important
things
to
remember
are
is
excited
by
long
term
investment
policy.
F
F
We
have
parts
of
the
portfolio
that
are
meant
to
help
us
when
equities
are
down
and
all
of
those
did
perform,
as
we
had
expected,
not
necessarily
as
we
of
Lights
so
looking
at
the
cash
flow
and
the
contributions
when
we're
investing
contributions
going
forward.
If
nothing
changes
we'll
be
investing
those
in
equities,
if
we
are
going
to
be
rebalancing,
will
be
rebalancing
away
from
fixed
income.
F
Remember
that
we
are
long-term
oriented
here
and
long-term
orientation
as
investors
saves
us
a
lot
of
issues
as
long
as
we
have
adequate
liquidity,
which
I
believe
that
we
always
do
the
things
that
I
am
seeing
in
the
marketplace
right
now
or
if
we
would
have
gone
back
to
the
the
heart
of
the
panic.
I
guess
you
could
say:
bond
markets
have
recovered
bond
markets
financed
the
goings
of
the
US
economy,
and
there
were
some
periods
of
time
were
even
Treasury.
F
Bonds
were
trading
with
limited
liquidity,
but
as
of
that
March
23rd
date,
when
the
Federal
Reserve
came
out
with
a
secondary
set
of
market
supports,
things
have
traded
much
better.
Since
then,
you
may
have
heard
about
the
oil
market
trading
briefly
negative
last
month
around
April
20th,
and
that
was
more
of
a
technical
factor,
but
it
does
show
you
that
some
things
in
the
marketplace
are
not
really
it
functioning
normally
right
now.
As
far
as
our
investment
managers
go
remember,
our
large
part
of
our
equity
exposure
is
passive.
Performed
has,
as
it
should.
F
I
will
say
that
the
the
parts
of
the
portfolio
that
were
hurt,
the
worst
going
towards
the
end
of
March,
have
been
the
parts
that
have
recovered
the
fastest.
In
fact,
I'm
looking
at
two
portfolios
that
we
have
that
off
of
the
bottom.
So
this
is
perfect
market
timing
from
March
23rd
to
last
week,
they're
up
in
excess
of
40%.
F
Today
we
started
the
year
with
68
million
dollars,
that's
total
market
value
and
then,
during
the
first
quarter
like
most
folks
out
there,
we
saw
significant
declines
in
that
market
value,
so
we
ended
the
first
quarter
with
50,
just
under
58
million
dollars.
I
look
at
the
market
value
as
of
last
Friday
and
again
this
is
not
returns
based.
This
is
the
market
value.
As
of
last
Friday,
we
were
up
to
almost
64
million
dollars,
so
the
recovery.
F
But
again,
this
is
a
in
the
medium
term.
Markets
will
stay
volatile.
The
volatility
has
come
off
significantly.
I
think
the
prudent
thing
to
do
is
to
maintain
our
allocation
by
investment
policy.
If
we
do
need
to
take
cash
out
of
the
portfolio
for
any
reason
that
we're
in
a
negative
cashflow,
environment,
I
would
recommend
taking
those
funds
from
our
active
duration
bond
portfolio
which
did
exactly
what
it
should
it
stabilized
the
total
market
value,
but
again,
no
other
major
moves
from
that
at
this
time.
F
As
a
matter
of
fact,
at
noon
today,
I'm
having
a
conference
call
with
oz
Way,
our
international
equity
manager,
I've
spoken
with
limb,
with
loomis-sayles,
already
spoken
with
Lord
Abbott
already
and
again,
just
making
sure
that
we
are
understanding
what's
driving
markets
over
the
short
term
and
there's
really
I
think
that
even
folks,
like
Warren
Buffett,
if
you
paid
attention
to
his
call
or
his
meeting
that
they
last
weekend
market
moves
so
quickly
off
of
the
bottom,
not
even
warmed.
Bethel
had
a
chance
to
take
advantage
of
that
volatility.
So.
F
I,
the
word
is
so
overused
right
now,
but
unprecedented
efforts
to
stabilize
the
economy,
so
we
can
get
things
reopened
and
I.
Think
the
unprecedented
part
is
a
direct
reaction
to
we've
got
30
million
people
have
been
put
out
of
work
over
the
last
seven
weeks,
which
again
not
even
the
Great
Depression.
Do
we
see
this
many
folks
put.
F
F
At
this
point
now
again,
we've
got
you
know,
roughly
a
third
of
the
assets
in
bonds
and
roughly
two-thirds
and
equities,
including
international
equities,
given
that
we're
long-term
investors
I
think
this
is
where
we
need
to
be
so
I'm
having
to
take
any
questions.
I
hope,
I'm,
not
cutting
it
too
sure,
but
in
the
interest
of
time
and
our
new
format
here,
I
want
to
leave
more
time
for
questions
unless
I'm
me
I'm
talking
about
about
rewards.
B
E
F
F
B
A
A
Thank
you,
sir
Matt,
and
it
passes
or
does
the
bar
zero
zero
next
item
is
five
discussion,
consider
approve
additional
asset
allocations
or
changes
to
portfolio
fund
managers,
as
recommended
by
the
board
or
the
investment
consultants.
My
understanding
that
we
do
not
have
anything
that
we
wish
to
consider
today
is
that
correct.
Mr.
Boggs.
H
And
this
is
this
is
just
the
next
year
in
our
Bank
of
Oklahoma
contract,
who
serves
as
our
custody
bank
for
the
for
the
investments
that
we
have
in
the
in
the
trust,
and
so
what
what
this
is
just
renewing
the
exact
same
terms
that
we
had
that
we
agreed
upon.
We
went
for
a
RFP
a
few
years
ago.
It's
just
the
next
one-year
extension
of
that
with.
H
A
H
A
I
A
G
Alright,
so
yes,
I'm
Rhonda,
Shelton
I'm
from
accounting
services
in
August,
we
presented
the
preliminary
June
2019
an
audited
financial
statement.
The
financials
were
finalized
in
late
November,
but
did
not
make
it
on
the
June
I
was
to
meet
a
February
agenda.
So
we
are
here
too.
We
are
the
acceptance
phase
of
the
June
2019
audited
financial
statements.
Now
look
at
page
seven
in
your
agenda
packet,
the
financial
statement
that
was
included
in
your
packet.
G
If
you
turn
the
page
to
page
eight,
you
will
notice
that
contribution
and
benefits
paid
for
the
year
ended
in
2019.
They
remain
stable,
while
investment
income
decreased
1.6
million
the
year
ending
net
position
for
June
2019
was
sixty
four
point:
nine
million
compared
to
fifty
eight
point:
1
million
for
fiscal
year
2018.
This
is
an
overall
increase
of
six
point,
eight
million
and
then
lastly,
if
you
will
look
at
page
22
in
the
financial
statement.
G
A
B
B
A
J
Hi
Brent:
this
is
Lindsey
McNabb
from
the
budget
office
and
I'll
present.
The
annual
budget,
hopefully
y'all,
have
it
in
front
of
you,
but
this
year's
for
FY
21,
the
total
budgets
28
million
two
hundred
and
seventy
eight
thousand
two
hundred
nine
dollars,
which
is
a
decline
of
about
a
million
dollars
from
last
year.
J
Second,
we're
increasing
our
estimates
for
the
interest
and
dividend
income
by
1.2
million,
and
then,
lastly,
we
had
a
decrease
in
the
general
fund
contribution
of
1.8
million,
and
this
is
to
match
the
required
employer
contribution
so
for
FY
21
we're
reducing
it
to
match
what
the
required
amount
is.
In
years
past
we've
had
a
little
bit
of
extra,
but
with
the
current
conditions
of
the
economy,
we
were
trying
to
reduce
general
fund
expenditures.
B
A
B
A
I
Just
want
to
mention
and
follow
up
a
little
bit
on
something
that
Doug
Anderson
said
about
the
importance
of
staying
the
course,
even
when
things
look
really
really
scary
and
that
I
think
that
we'll
be
able
to
demonstrate
a
much
better
result
by
not
trying
to
to
actively
manage
our
way
out
of
the
economic
situation.
That
happened
and
let
the
financial
markets
do
their
their
work.
I
A
We
talked
to
Doug
last
week
and
he
talked
about
the
the
timing
of
when
it
really
goes
when
things
go
bad
too,
when
they
start
to
recover,
and
it's
I
like
their
approach,
we're
in
this
for
the
long
term,
and
we
just
need
to
continue
down
that
path,
so
all
right
anything
anything
from
staff
all
right.
Having
anything.