March 2015 Monthly Board Report

STIFLER APPOINTED TO OP&F BOARD BY TREASURER OF STATE

Karin Maloney Stifler was appointed as a member of the Ohio Police & Fire (OP&F) Board of Trustees on March 4, 2015, and will serve as the appointed investment expert member representing Ohio Treasurer of State Josh Mandel. Maloney Stifler will serve a four-year term that will expire in 2019.
A Certified Financial Planner and Accredited Investment Fiduciary, Maloney Stifler has a breadth of strategic financial experience developed during more than 20 years working with nationally prominent firms prior to founding her own firm, True Wealth Advisors, in 2004. A nationally recognized financial planning expert, Maloney Stifler is frequently invited to present and comment on personal finance issues.
Additionally, she works with Bluecoats, Inc., a foundation dedicated to supporting families of police officers and firefighters in Northeast Ohio who have lost their lives in the line of duty. Maloney Stifler has a BA in international studies and economics from Miami University in Oxford, Ohio, and an MBA in finance from Northeastern University in Boston.

MONTGOMERY ELECTED CHAIR OF OP&F BOARD

After a vote of trustees on March 25, Edward L. Montgomery (Columbus Police) will serve as the Chair of the OP&F Board of Trustees through the May 2015 meeting. Montgomery, who has served on the Board since 2003, has twice before served as the Chair of the Board of Trustees. Daniel Desmond (Toledo Fire) was elected as Chair Elect, also on March 25, and is scheduled to assume the Chair position at the group’s June meeting.

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 and death benefit fund cases. The Committee/Board also discussed the 2014 HOST (Helping Our Survivors in Transition) Experience Report with staff. Staff also reported that one disability retiree who had an outstanding Annual Earnings Statement and had been suspended, returned the required form.
• HEALTH CARE: The Committee/Board had follow-up discussions on several topics from the Board Retreat earlier in the month. The Committee/Board requested a more detailed analysis from OP&F actuaries at the April meeting. The UnitedHealthcare contract period, the RFI and RFP process, health care exchanges and cost containment were also discussed.
• INVESTMENT: In addition to the monthly portfolio update, the Committee/Board received the Semi-Annual Proxy Voting Report for the second half of 2014. Several other reports were provided to the Committee/Board for reference, including the 4th Quarter Compliance Review, the 4th Quarter Timberland Report, the 4th Quarter Private Markets Report and the annual Manager Meetings Report.
• FINANCE: The Committee was presented with the 4th Quarter 2014 Budget-to-Actual Report and received an update on the status of past due employers. The Committee noted its concern with the cities of East Cleveland and Norwood.

• At its March 2015 meeting, the OP&F Board of Trustees voted on the following motions:
• Approved staff and Torrey Cove’s recommendation to invest up to $50 million in Blackstone Capital Partners VII. Motion passed by unanimous vote (Investment Committee).
• Approved several revisions to the Investment Policy and Guidelines as recommended by staff. Motion passed by unanimous vote (Investment Committee).
• Approved investment guidelines for two PIMCO fixed income mandates and revised guidelines for Russell Implementation Services. Motion passed by unanimous vote (Investment Committee).
• Approved several revisions to the Proxy Voting Policy to incorporate recommendations by ISS, OP&F’s proxy voting advisor. Motion passed by unanimous vote (Investment Committee).
• Approved the manager rating for AQR, Grosvenor, Russell Implementation Services, and Neuberger Berman as recommended by staff. Motions for Grosvenor, Russell and Neuberger Berman passed by unanimous vote. Motion for AQR passed by a vote of 5-2 (Investment Committee).
• Board approved Townsend’s recommendation to invest up to $50 million in Gerrity Retail Fund II. Motion passed by a 6-0 vote with one abstention (Investment Committee).
• Approved the Committee recommendations for the initial determination of disability for the eight members as identified in the initial determination hearings list presented to the Board on March 25, 2015. Motion passed by unanimous vote (Disability Committee).
• Approved the recommendation for the appeal hearing for the six members identified in the appeals list presented to the Board on March 25, 2015. Motion passed by unanimous vote (Disability Committee).
• Approved the recommendations for Death Fund benefits for the members identified. Motion passed by unanimous vote (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 March 25, 2015. Motion passed by unanimous vote (Disability Committee).
• Approved enhancements to the existing dental and vision coverage levels for 2016. Motion passed by unanimous vote (Health Care Committee).
• Elected Mr. Montgomery to the position of Board Chair, and Mr. Desmond to Chair-Elect. Motion passed by unanimous vote (Full Board).
  
  

Next Board of Trustees Meetings: April 28-29, 2015