April 2013 Monthly Board Report
OP&F INVESTMENTS SHINE IN RECENT INDEPENDENT REPORT TO LAWMAKERS
An investment report presented to the Ohio Retirement Study Council (ORSC) shows
that the Ohio Police & Fire Pension Fund�s (OP&F) investment portfolio continues
its exceptional performance.
In a comparison with a group of peer
institutional investors, OP&F�s portfolio returns ranked in the top one percent
in both the three-year and 10-year periods that ended Dec. 31, 2012. In the
three-year period, OP&F realized a 10.9 percent return on investments while the
10-year period was 8.9 percent. OP&F ranked in the top two percent for
performance in 2012, with a 14.9 percent return. Each of these investment
periods outpaced OP&F�s assumed rate of return of 8.25 percent.
An
independent actuarial firm contracted to provide the ORSC with investment
reports, presented its most recent findings at the ORSC�s April 9 meeting. The
comparative universe of investors used in the study includes more than 3,000
plans and $4 trillion in assets..
DATES CHANGED FOR OCTOBER 2013 BOARD MEETINGS
October's Board of Trustee meetings have been changed to Oct. 22 and 23, 2013.
The meetings were previously scheduled for Oct. 29 and 30.
PORTFOLIO UPDATE
OP&F's investment portfolio value:
|
Current value (4/23): |
$13.1 billion |
|
End of March value: |
$13.1 billion |
|
End of February value: |
$12.9 billion |
Board of Trustees Committee Notes
(Motions approved by the Board are listed separately)
- DISABILITY: The Committee/Board reviewed disability cases
in addition to the regularly scheduled hearings and appeals. The
Committee/Board also discussed Post Traumatic Stress Disorder and reviewed the
1st Quarter 2013 Disability Experience Report.
- BENEFITS: The Committee reviewed Deferred Retirement
Option Plan statistics, both monthly and quarterly and discussed trends in the
plan.
- HEALTH CARE: The Committee/Board reviewed and discussed
the most recent Health Care Stabilization Fund report, then received an update
from UnitedHealthcare. The UnitedHealthcare update included information on
upcoming changes to the Prescription Drug List, potential health care savings
programs and also an examination of the Employer Group Waiver Plan option. The
Committee/Board asked questions and discussed each of the items in the update.
- INVESTMENT: In addition to the monthly portfolio update,
the Committee/Board viewed and then discussed a presentation on a potential
real estate investment opportunity.
Motions:
At its April 2013 meeting, the OP&F Board of Trustees voted on the following motions:
- Approved Real Estate Strategic Fund Rebalancing, which includes full
redemption from the INVESCO Core Fund and the ability to use dividend
reinvestment programs to help gradually increase OP&F�s real estate
exposure. Motion passed by unanimous vote (Investment Committee).
- Approved the manager ratings for EARNEST Partners, Bridgewater GIPS, JP
Morgan, Western Asset, Loomis Sayles, Prima, FX Concepts and Mellon as
presented by staff. Motion passed by unanimous vote, except for the JP
Morgan rating review, where one tress abstained (Investment Committee).
- Approved a recommendation from Townsend to commit up to $50 million to
USAA Eagle Real Estate Fund following a presentation from USAA
representatives Motion passed by unanimous vote with the exception of two
trustees who abstained. (Investment Committee).
- Approved a recommendation from staff, Wilshire and Townsend to commit up
to $100 million to Global Timber Investors 10, was approved following a
presentation from Global Forest Partners on their current fund offering.
Motion passed by unanimous vote (Investment Committee).
- Approved staff�s recommendation to commit $60 million to Landmark Equity
Partners XV following a presentation from Landmark Equity. Motion passed by
unanimous vote (Investment Committee).
- Approved the manager ratings for Forest Investment Associates, Hancock
Natural Resource Group and Brookfield Timberlands Management as recommended
by staff. Motion passed by unanimous vote (Investment Committee).
- Approved the Committee recommendations for the initial determination of
disability for the 12 members as identified in the initial determination
hearings list presented to the Board on April 24, 2013. Motion passed by
unanimous vote (Disability Committee).
- Approved the recommendations for the appeal hearings for six of the
seven members identified in the appeals list presented to the Board on April
24, 2013. Motion passed by unanimous vote (Disability Committee).
- Approved the recommendations for Death Fund benefits for the members
identified. Motion passed unanimously (Disability Committee).
- Waived the mandatory medical evaluation and filing of annual earnings
statements for future years for the members identified in the disability
reporting waivers list presented to the Board on April 24, 2013. Motion
passed by unanimous vote (Disability Committee).
- Approved the Administration/Audit Committee�s travel recommendation as
presented and discussed in the Administration/Audit Committee on April 23,
2013. Motion passed by unanimous vote (Administration/Audit Committee).
- Approved the Administrative Rules outlined in staff�s memorandum dated
April 23, 2013, with no changes being made for the reason outlined in such
memorandum, and authorizes the required filing of the Rules with the proper
agencies. Motion passed by unanimous vote (Benefits Committee).
Next Board of Trustees Meetings: May 28-29, 2013