OP&F Investment notes, September 2024

Portfolio value:The OP&F portfolio was valued at $18.88 billion as of Sept. 25.

OP&F terminates international small-cap manager; approves new search

The OP&F Board of Trustees terminated Barings from its International Small-Cap Equity mandate at its Sept. 25 meeting.  As of Aug. 31, Barings managed $163 million for OP&F.

Primary reasons for the termination were performance, decline of assets in the strategy, and declining conviction in the team and investment process. Barings was downgraded by the Board of Trustees/Investment Committee in March 2024, meaning they would be reviewed quarterly going forward. Since inception, the firm’s performance has been well below their benchmark. Barings was selected as an international equity manager for OP&F in July 2021.

The Board also approved a new search for a manager to replace Barings. Wilshire and Staff will conduct a targeted RFP process, consistent with OP&F’s Search Policy, that will utilize Wilshire’s highest scored managers supplemented by staff’s research.

Posted 9/26/2024