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:

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.

• 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