Fundraising - MAY 27, 2014

Ohio Police & Fire increases target allocation to MLPs

by Reg Clodfelter

The $14.2 billion Ohio Police & Fire Pension Fund has increased its target allocation to master limited partnerships from 5 percent to 8 percent of the total portfolio.

According to OP&F, Wilshire Associates, the pension fund’s general investment consultant, presented modeling showing that this change in allocation offers improved risk-adjusted returns and improved total portfolio risk balance versus the current policy target.

The pension fund, which currently has 5.9 percent of its portfolio invested in MLPs, began investing in MLPs in 2012 when it hired three different managers. OP&F’s current MLP managers are Harvest Fund Advisors (managing $327 million), Salient Capital Advisors ($173 million) and Tortoise Capital Advisors ($341 million).

No timetable has been set to meet the target MLP allocation, though it should require approximately $298 million of further investment. The capital is expected to be divided among the existing managers and will be funded from other overweight asset classes. OP&F says that no terminations are expected.

Forgot your username or password?