OP&F Investment notes, May 2023

Notes from the Investment Committee meetings on May 24

Portfolio value: The OP&F portfolio was valued at $17.1 billion as of May 23

OP&F commits $40 million to Resolute VI private markets fund

The OP&F Board approved a commitment of up to $40 million to The Resolute Fund VI, a private markets fund focusing on the middle and upper middle market opportunities. OP&F also has an investment in Resolute Funds III and IV.

OP&F’s private markets portfolio is valued at $1.44 billion, or 8.3 percent of the total portfolio. The current interim target for the asset class is 8.5 percent, while the long term target is 10 percent. The commitment to Resolute VI moves the total 2023 commitments to private markets to $155 million. The target for the year is between $220-250 million.

Private Credit portfolio adds new commitment

The OP&F Board approved a commitment of up to $50 million to HIG WhiteHorse IV, which concentrates on a variety of middle market loans.

OP&F’s private credit portfolio is valued at $512 million, or 2.9 percent of the total portfolio. The current interim target for the asset class is 3.5 percent. The commitment to HIG WhiteHorse IV moves the total commitments to private credit in the 7/1/2022 - 6/30/2023 plan year to $100 million.

Performance reports presented to Board

Consultants for OP&F presented investment performance reports to the Board at its May meeting. Wilshire presented the performance report for the entire portfolio through the 1st quarter of 2023, showing a net 3.5% return for the quarter.

Townsend presented performance reports through the 4th quarter of 2022 for both the real estate and real assets portfolios. The real estate portfolio showed a negative 3.7 percent net return for the 4th quarter of 2022 but a 6.6 net percent return for calendar year 2022. The real assets portfolio had a 3.3 percent net return for the 4th quarter and a 7.1 percent net return for the calendar year.