ORSC: OP&F outperformed own benchmarks and peers in 2021

A study by independent investment consulting firm RVK commissioned by the Ohio Retirement Study Council (ORSC) found that the Ohio Police and Fire Pension Fund (OP&F) outperformed its own benchmarks, and its Ohio and national peers for the one year period.

In calendar year 2021, OP&F outperformed its total fund benchmark by over four percent. OP&F performed better than 98% of all of all public plans with greater than $1 billion in holdings for the sixth month period 12/31/21. This is a testament to the work of the OP&F Board and staff.

“We are extremely proud of our investment team and partners providing sector-leading results,” OP&F Executive Director Mary Beth Foley said. “With harder times on the horizon for U.S. capital markets, we will need to continue to seek ways to ensure the retirements of our first responders are secure.”

The report also showed that OP&F has less exposure to volatility in the stock market than other funds because of its well-balanced portfolio.

OP&F has legislation pending before the Ohio General Assembly to increase employers’ contributions for the first time in almost forty years. It’s doing so because its investment results are already on the leading edge, but cannot make up for continually lagging employer contributions. Warning indicators about the future of the capital markets indicate the American economy will not continue to produce these results.

“Our goal has been to maximize investment success in the short term while keeping a close eye on the longer term,” Foley said. “We’re proud when independent researchers find that we have served our members well and we’re looking forward to working with the legislature to make sure that commitment is seen through with the next generation of Ohio’s first responders.”

RVK noted OPF managed an investment portfolio of over $19.6 billion effective 12/31/21. The fund serves over 27,000 active members and 30,000 retirees and their beneficiaries.

Posted 5/13/2022