OP&F News

OP&F investment notes, March 2021

Notes from the Investment Committee meeting on March 31, 2021

Portfolio value:

The OP&F portfolio was valued at $17.20 billion as of March 30.

OP&F hires new non-US small cap equity manager

Following a search by staff and investment consultant Wilshire, OP&F has selected Barings International Small Cap to manage approximately $180 million.

In April 2020, OP&F terminated Franklin Templeton, which managed an international small cap mandate. In September 2020, OP&F adjusted its asset allocation policy that included changing the balance between U.S. and non-U.S. equities. The long term target for U.S. equities is now 21 percent of the total portfolio, while non-U.S. equities is 14 percent. OP&F’s prior long term equity targets were 16 percent each to both U.S. and non-U.S. equities.

Commitment to infrastructure manager approved

The OP&F Board approved a commitment of up to $125 million to KKR Diversified Core Infrastructure Fund at its March 31 meeting. KKR is an open-end core fund focusing on opportunities in North America, Western Europe and developed Asian markets. They will be investing in a diversified type of infrastructure projects.

The commitment will be in addition to the $578 million currently invested in the Real Assets portion of the OP&F portfolio. Real Assets currently is 3.4 percent of the total portfolio and has a target of 8.0 percent.

Bridgewater global macro put on watch

Bridgewater Associates, which manages a global macro account as a part of OP&F’s U.S. equity portable alpha strategy, has been downgraded in a manager review by staff. For this mandate, Bridgewater’s manages $888 million in a combination of its Pure Alpha fund and S&P 500 futures, and has had the account since 2007.

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. Bridgewater has been rated as a “2” since September 2016 and reviewed semi-annually since that time. With the downgrade to a “3,” Bridgewater will be reviewed quarterly until issues are resolved.

The reasons for the downgrade include performance, specifically in 2020, along with the size of the firm and capacity concerns in relation to assets under management.

Posted 4/01/2021

Other News

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
Health care webinars Sept. 15-24
- Posted September 04, 2020
OP&F Investment Notes, August 2020
- Posted August 28, 2020
Rescheduled trustee election schedule approved
- Posted August 27, 2020
OP&F retirees taking advantage of extended reimbursement deadlines
- Posted August 03, 2020
Pre-Retirement meetings to be webinars this year
- Posted August 03, 2020
Member’s Report Summer Newsletter now available
- Posted July 29, 2020
2019 financial reports now available
- Posted July 14, 2020
OP&F Investment Notes, June 2020
- Posted June 18, 2020
Deadline to submit 2019 health care claims now Sept. 30
- Posted June 16, 2020