The $20.16B Ohio Police and Fire Pension Plan has approved the restructure of its high-yield portfolio in efforts to improve its long-term return-risk profile.
Currently, the high-yield portfolio includes three managers, MacKay Shields, Loomis Sayles, and Neuberger Berman. When the restructuring is completed, MacKay Shields and Loomis Sayles will each be targeted to manage 50%. Neuberger Berman will not be included going forward “due to structural efficiency reasons and not owing to performance issues,” noted recent investment meeting materials.
Currently, the high-yield portfolio is valued at $1.6B or 8% of the total portfolio, against a long-term target allocation of 7%.
Additionally, consultant Wilshire also presented a performance review as of June 30, 2025, at the investment meeting. The review reported a gross return of 14.46% for the one-year period ending June 30, 2025, which places OP&F in the top 1% of peer plan sponsors in the U.S.
Strong absolute returns in gold, midstream energy infrastructure, U.S. equity, and non-U.S. equity contributed along with the strong relative performance of OP&F’s U.S. equity and non-U.S. equity managers vs. their respective asset class benchmarks, said the meeting notes.
