OP&F News

OP&F investment notes, February 2021

Notes from the Investment Committee meeting on Feb. 24, 2021

Portfolio value:

The OP&F portfolio was valued at $17.17 billion as of Feb. 23.

OP&F sees 9.2% return for 2020

OP&F’s general investment consultant Wilshire presented the 4th Quarter Performance Review for periods that ended on Dec. 31, 2020, that showed that the portfolio saw a 9.21% return for the year. The return was above the actuarial assumed rate of return, which is set at 8.0%, but lagged the total portfolio policy benchmark return of 9.84%. OP&F’s allocation to Midstream Energy Infrastructure (MLPs), which turned in a dismal -23.4% for 2020, put downward pressure on the total portfolio’s return. In addition, Wilshire pointed out OP&F’s target allocation to the strong performing U.S. equity asset class fell within the lowest quartile weighting among its peer public plans. Wilshire’s report also showed that OP&F outpaced its policy benchmark for the three (8.23% vs. 7.58%), five (9.95% vs. 9.18%) and 10-year periods (9.10% vs. 8.11%).

Board approves changes to non-U.S. equity portfolio

OP&F’s non-US equity portfolio will continue to change following the asset allocation study approved in late 2020. That study lowered the target allocation for non-U.S. equity to 14% of the total portfolio. The mix of managers within the asset class will move to 85% large cap managers and 15% small cap managers. Currently the mix is 75/25 in favor of large cap. The existing managers will remain in place with some allocation adjustments. A search for an additional international small cap manager is well underway with a hiring recommendation expected in March.

The non-U.S. equity portfolio for OP&F was valued at $3.0 billion, or 17.8% of the total portfolio at Jan. 31, 2021.

Up to $60 million approved to new Cortland real estate fund

Following a recommendation from The Townsend Group, the OP&F Board approved a real estate commitment of up to $60 million to Cortland Enhanced Value Fund V. This is a closed-end, value-add apartment fund that will focus on growth markets in the U.S. southeast and southwest regions. This marks OP&F’s first real estate commitment of 2021 and is within the tactical portion of the real estate portfolio. OP&F is also an investor in the Cortland Partners Growth and Income Fund. The OP&F real estate portfolio was valued at $1.6 billion, or 9.6% of the total portfolio at Jan. 31, 2021. OP&F’s target for real estate is 12% of the total portfolio.

Posted 2/25/2021

Other News

Health care webinars Sept. 15-24
- Posted September 13, 2021
OP&F hosts flag raising ceremony on 9/11 anniversary
- Posted September 07, 2021
OP&F investment notes, August 2021
- Posted August 26, 2021
Danish named General Counsel for OP&F
- Posted August 18, 2021
Member’s Report Summer Newsletter now available
- Posted July 29, 2021
2020 financial reports now available
- Posted July 01, 2021
OP&F investment notes, June 2021
- Posted July 01, 2021
OP&F Names Foley Executive Director
- Posted June 30, 2021
Public can attend June OP&F Board meetings
- Posted June 18, 2021
No changes in health care process after sale of Aon Retiree Health Solutions
- Posted June 04, 2021
New videos help members connect to virtual appointments
- Posted June 03, 2021
OP&F Investment notes, May 2021
- Posted May 27, 2021
Public can attend May 26 OP&F Board meeting
- Posted May 20, 2021
Member’s Report Spring Newsletter now available
- Posted April 29, 2021
OP&F investment notes, April 2021
- Posted April 29, 2021
OP&F investment notes, March 2021
- Posted April 01, 2021
OP&F investment notes, February 2021
- Posted February 25, 2021
Beware of scam phone calls
- Posted February 15, 2021
OP&F investment notes, January 2021
- Posted January 28, 2021
Member’s Report Winter Newsletter now available
- Posted January 14, 2021
OP&F Trustee Moore recognized
- Posted January 06, 2021
2021 Direct deposit dates for benefit payments
- Posted December 23, 2020
Czack, Drum and Deal win terms on OP&F Board
- Posted December 21, 2020
Trustee election results announced by Dec. 21
- Posted December 04, 2020
Aon presenting special HRA webinars
- Posted December 04, 2020
OP&F investment notes, December 2020
- Posted December 03, 2020
Thank you, first responders
- Posted November 25, 2020
Trustee election ballots due back by Dec. 1
- Posted November 13, 2020
Proof of health care insurance letter
- Posted November 09, 2020
Be careful with your personal information
- Posted November 05, 2020
Pension funding status improves
- Posted October 28, 2020
Trustee election ballots go out Oct. 26
- Posted October 26, 2020
OP&F investment notes, October 2020
- Posted October 22, 2020
A reminder about DROP distribution deadlines for 2020
- Posted October 13, 2020
Pre-Retirement Webinar recording now available online
- Posted October 12, 2020
Study of health care fund shows improvement
- Posted October 08, 2020
Pre-Retirement webinars scheduled this week
- Posted October 05, 2020
OP&F Investment Notes, September 2020
- Posted October 02, 2020
OP&F again offering stipend increase for low-income households
- Posted October 01, 2020
Member's Report Fall Newsletter now available
- Posted September 30, 2020