In a recent government meeting, officials discussed significant adjustments to investment strategies, particularly focusing on the rebalancing of portfolios between U.S. and non-U.S. equities. The target allocation for international developed equity has increased from 10% to 15% this year, reflecting a strategic shift in response to the U.S. market's strong performance compared to its international counterparts.

The meeting highlighted the current state of the investment portfolio, which has shown robust performance, with a net increase of over 12% for the year ending August. Private equity remains a strong performer, yielding a 6.8% return, although it has faced challenges against the S&P 500 in the short term. The discussion also touched on the underperformance of certain sectors, particularly in healthcare, where the portfolio has been impacted by a lack of exposure to GLP drugs.

Fixed income investments are slightly underweight, but the portfolio is maintaining a healthy cash reserve to cover operational expenses. The fixed income segment has performed well, with returns nearly 8% ahead of the index. However, concerns were raised regarding Western Asset Management Company (WAMCO), which is experiencing significant turnover among senior staff amid an SEC investigation into trade allocations. Although the investigation has not implicated the firm directly, the potential for future issues has prompted a review of investment managers.

Real assets were noted as the worst-performing asset class on an absolute basis but have performed relatively well within the portfolio. The Morgan Stanley Prime Property Fund, which has a focus on multifamily and industrial properties, is stabilizing after previous declines.

The meeting concluded with a motion to receive the monthly investment report, which was approved unanimously. Board members expressed anticipation for an upcoming trustee education conference in Tulsa, emphasizing ongoing engagement and education in investment strategies.