OP&F Investment notes, August 2025

Portfolio value: The OP&F portfolio was valued at $20.16 billion* as of Aug. 26.

*An all-time high.

OP&F posts one-year return of 14.46%

OP&F’s general investment consultant, Wilshire, presented a performance review as of June 30, 2025, at the Aug. 27, 2025, meeting. The review shows a gross return of 14.46% for the one-year period ending June 30, 2025, which places OP&F in the top one percent of peer plan sponsors in the U.S. Strong absolute returns in gold, midstream energy infrastructure, U.S. equity and non-U.S. equity contributed along with the strong relative performance of OP&F’s U.S. equity and non-U.S. equity managers vs. their respective asset class benchmarks.

OP&F adds to real assets portfolio with infrastructure fund

The OP&F Board approved a commitment of up to $80 million to Meridiam Infrastructure North America Fund IV at its Aug. 27 meeting. The Meridiam fund will pursue a greenfield-focused build-to-core strategy to construct a diversified portfolio of long-term contracted infrastructure projects in North America.

The OP&F real assets portfolio includes infrastructure, agriculture and timber investments. The current value of the portfolio is $1.3 billion, or 6.4 percent of the total OP&F portfolio. The long-term target allocation for real assets is 8.0 percent.

OP&F commits to private credit fund

Also at its Aug. 27 meeting, the Board approved a commitment of up to $50 million to Crescent Direct Lending Levered Fund IV. Crescent Direct Lending Levered Fund IV will focus on first-lien senior secured loans to U.S private equity-owned companies in the lower-middle market. OP&F has previously invested in Crescent European Specialty Lending Fund III.

The private credit portfolio at OP&F is valued at $666.6 million, or 3.3 percent of the total portfolio. The long-term target allocation for private credit is 5.0 percent.

Re-structuring of high yield portfolio approved

Trustees approved a re-structuring of the high yield portfolio that is expected to improve the return-to-risk profile over the long term. Currently, the high yield portfolio includes three managers, MacKay Shields, Loomis Sayles and Neuberger Berman. When the restructuring is completed, MacKay Shields and Loomis Sayles will each be targeted to manage 50 percent. Neuberger Berman will not be included going forward purely for structural efficiency reasons, not due to performance.

The high yield portfolio is currently valued at $1.6 billion, or 8.0 percent of the total portfolio. The long-term target allocation for high yield is 7.0 percent.

Posted 8/27/2025