Notes from the Investment Committee meeting on Feb. 26
The OP&F portfolio was valued at $15.97 billion as of 2/25.
4th quarter review shows impressive returns for 2019
Wilshire Associates, OP&F’s general investment consultant, presented the Investment Performance Report to the Board for periods ended Dec. 31, 2019. The report showed that the portfolio had a 17.23 percent net return for the year, well above the 8.0 percent actuarial assumed return and the 16.32 percent policy return. The gross returns for the one-year (17.89 percent), three-year (9.80 percent), five-year (8.16 percent) and 10-year periods (9.75 percent) were all well above their corresponding periods’ policy returns according to the report.
OP&F approves infrastructure investment to iCON
The OP&F Board approved a recommendation to commit up to $75 million to iCON Infrastructure Fund V. iCON’s focus is on acquiring a diversified portfolio of middle market core, core-plus and value-add infrastructure assets and asset backed companies located predominantly in North America and Europe. The commitment is the first in the real assets portfolio for 2020. OP&F has four other infrastructure managers, all added since 2017. The Real Assets portfolio is currently 3.0 percent of the total OP&F portfolio, with a target of 8.0 percent.
Board approves two private markets commitments
The Board approved two private markets recommendations of up to $20 million each during the February meeting, to Altaris Health Partners V, L.P. and Francisco Partners VI. OP&F has existing investments with each (Altaris HP IV, and Francisco III and IV). Altaris will focus on middle market private equity investments in healthcare and healthcare-related businesses primarily in North America. Francisco will focus on technology and technology-enabled solutions businesses primarily in North America and Europe.
The commitments are the second and third private markets commitments for the 2020 plan year for OP&F. The plan calls for five commitments to private markets of up to $20 million each. The OP&F Private Markets portfolio is valued at $1.35 billion, or 8.33 percent of the total portfolio. OP&F’s target for the asset class is 8.0 percent.