OP&F Investment notes, January  2023

Notes from the Investment Committee meetings on Jan. 24-25

Portfolio value: The OP&F portfolio was valued at $17.4 billion as of Jan. 24

Real estate plan for 2023 sets commitment target

The OP&F Board approved a real estate investment plan for 2023 that calls for between $140 million and $215 million in new commitments. The target range will be used as a guideline. Actual commitments amounts will vary depending on the quality of the opportunity set.

OP&F’s real estate portfolio is valued at $2.02 billion, or 11.9 percent of the total portfolio. The target for the asset class is 12.0 percent.

Real assets portfolio sets target for 2023

The OP&F Real Assets portfolio, consisting of infrastructure, agriculture and timber investments, will aim for between $250 million and $350 million in new commitments in 2023. Specifically, $100 million to $200 million of new commitments will be in closed end funds while the remaining $150 million will be open end funds. The new commitments will primarily be in the infrastructure portion of the portfolio.

OP&F’s real assets portfolio is valued at $915 million, or 5.4 percent of the total portfolio. The target for the asset class is 8.0 percent.

3rd quarter performance reviewed for real estate, real assets

Townsend, an OP&F investment consultant, presented performance reviews for the real estate and real assets asset classes through the third quarter 2022 at the January Board of Trustees meeting.

OP&F’s real estate portfolio had a total net return of 0.0 percent for the quarter, however the net return for the 12-month period that ended on Sept. 30, 2022 was a net 20.9 percent. The OP&F real assets portfolio had a total net return for the third quarter of 1.2 percent, and net 9.1 percent for the 12-month period ended Sept. 30, 2022.