OP&F outlines 2023 real estate pacing plan

Name: Ohio Police & Fire Pension Fund
Headquarters: Columbus, United States
AUM: $17.4 billion
Allocation to real estate: 11.09%

Ohio Police & Fire Pension Fund has outlined its real estate pacing plan for 2023, according to materials from the US pension fund Board and Investment Committee Meeting.

Highlights from the Ohio Police & Fire Pension Fund January 2023 board and investment committee meeting:

• A real estate plan for 2023 that aims for between $140 million and $215 million in new investments was approved by the OP&F Board. Also, the board confirmed the commitments will be made depending on how good the opportunity set is.
• OP&F currently allocates 11.09% of its total investment portfolio to real estate, totalling $2.02 billion in capital. It currently has a target allocation of 12%.

The target year for Real Assets Portfolio in 2023:

The OP&F Real Assets portfolio, which includes infrastructure, agriculture and timber investments, will aim for fresh commitments between $250 million and $350 million in 2023. In particular, the new commitments will be split between closed-ended funds ($100 million to $200 million) and open-ended funds ($150 million). The infrastructure sector of the portfolio will receive the majority of the new investments.

The real estate portfolio of OP&F had a total net return of 0.0% for the quarter, but a net 20.9% for the full year that concluded on September 30, 2022.

The portfolio of real assets held by OP&F had a total net return of 1.2% for the third quarter and a net return of 9.1% for the year that ended on September 30, 2022.

Ohio Police & Fire Pension Fund has committed $50 million to real estate funds in 2022. As illustrated below, the public pension’s recent private real estate commitments have tended to target vehicles across all strategies that invest in North America.

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