Notes from the Investment Committee meeting on April 28, 2021
The OP&F portfolio was valued at $17.74 billion as of April 27.
OP&F commits to new Veritas fund
OP&F’s Board approved a commitment of up to $20 million to Veritas Capital Vantage Fund at its April meeting. The fund will focus on buyouts in North America.
OP&F’s 2021 Private Markets Investment Plan called for between $80 million and $120 million in new commitments for the year. Following this commitment and another made during the meeting (see below), $60 million has been committed so far.
OP&F also has invested in Veritas VI and Veritas VII. OP&F’s private markets portfolio is valued at $1.74 billion, or 10 percent of the total portfolio. The target for private markets at OP&F is 8.0 percent.
Board approves commitment to TA XIV
A second commitment to a private markets fund was approved in April, to TA XIV, a North American growth fund. A commitment of up to $25 million was approved. OP&F also is invested in three previous TA funds: XI, XII and XIII.
Bridgewater TIPS account put on watch
Bridgewater Associates was downgraded, primarily for performance issues, in relation to their management of a levered TIPS account for OP&F. For this mandate, Bridgewater’s manages $1.48 billion and has had the account since 2004.
OP&F’s rating system assigns a number, 1-4, to managers when they are reviewed, with “1” being retain with no material issues, and “4” being termination. The Bridgewater TIPS account has been rated as a “2” since October 2016 and reviewed semi-annually since that time. With the downgrade to a “3,” this account will be reviewed quarterly until issues are resolved.