November 2016 Monthly Board Report

OHIO SENATE, HOUSE REAPPOINT HELLER FOR THIRD TERM AS OP&F TRUSTEE

J. David Heller begins his third term with the OP&F Board of Trustees after being re-appointed by the Ohio Senate and Ohio House of Representatives on Nov. 5. Heller will serve as one of three investment expert member’s on the Board. He will serve a four-year term that expires on Nov. 4, 2020. He was originally appointed to the Board in December 2008.

Heller is a founder and principal of The NRP Group, a full-service developer, general contractor, and property manager specializing in providing affordable single-family, multi-family and senior housing. Heller’s professional experience also includes serving as a real estate consultant with the Townsend Group and with Arthur Andersen & Co. in Chicago as a manager in the real estate consulting division.

PORTFOLIO UPDATE
OP&F's investment portfolio value:

Board of Trustees Committee Notes
(Motions approved by the Board are listed separately)

• DISABILITY: In addition to the regularly scheduled hearings, the Committee discussed the Board’s authority to modify disability benefits on appeal and reconsideration.
• HEALTH CARE: The Committee discussed the status of the Health Care Stabilization Fund and net cost reports with staff. A representative from UnitedHealthcare presented updates to the prescription drug list, effective January 2017 and also reported preliminary numbers from the Annual Change Period. Additional discussion took place on the status of health care funding.
• INVESTMENT: In addition to the monthly portfolio update, the Board received an overview of the real estate market and an update on OP&F’s investment in the JP Morgan Strategic Property Fund from representatives of JP Morgan Asset Management. OP&F’s general investment consultant, Wilshire Associates, presented the Investment Performance Report for periods ending Sept. 30.
  
  Motions:
  At its November 2016 meeting, the OP&F Board of Trustees voted on the following motions:
• Approved staff’s, Wilshire’s and Townsend’s recommendations to convert the strategic asset allocation to Timber of 5.0 percent to a Real Assets allocation consisting of timber, infrastructure and agriculture. Motion passed by unanimous vote (Investment Committee).
• Approved Townsend’s recommendation to commit up to $50 million to Exeter Industrial Fund IV. Motion passed by unanimous vote (Investment Committee).
• Approved the Real Estate Strategic Plan as recommended by the Townsend Group. Motion passed by unanimous vote (Investment Committee).
• Approved staff’s recommended manager ratings for State Street Global Advisors, Western Asset and Pacific Investment Management Company. Motion passed by unanimous vote (Investment Committee).
• Approved the Committee recommendations for the initial determination of disability for the members as identified in the initial determination hearings list presented to the Board on Nov. 16, 2016. Motion passed by unanimous vote. (Disability Committee).
• Approved the Committee recommendation for reconsideration for the members identified in the reconsideration hearings list presented to the Board on Nov. 16, 2016. Motion passed by unanimous vote (Disability Committee).
• Approved the Committee recommendations for appeal hearings for the members identified in the appeals list presented to the Board on Nov. 16, 2016. Motion passed by unanimous vote (Disability Committee).
• Approved the Committee recommendation 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 Nov. 16, 2016. Motion passed by unanimous vote (Disability Committee).
• Approved the 2017 Annual Budget in the form submitted to the Board of Trustees on Nov. 15, 2016. Motion passed by unanimous vote (Finance Committee).
  

NEXT BOARD OF TRUSTEES MEETINGS: Dec. 13-14, 2016