Investment activity by the Ohio Public Employees Retirement System touches businesses here in the Buckeye State in many ways.
For instance, since 2010 OPERS has committed more than $2.4 billion to Ohio investments or Ohio-based money managers. Meanwhile, Ohio-qualified managers not headquartered here oversee more than $6.4 billion in OPERS assets. In addition, $35 billion in OPERS funds are managed by our in-house staff, here in Columbus.
Here is an updated look at our varied relationships with Ohio-related companies:
Among our local initiatives are the Ohio-Midwest Funds, $200 million worth of financial commitments by OPERS that help companies grow and prosper.
This investment is private equity, or equity investments in companies that are not traded on public exchanges. We initiated the first of three Ohio Midwest Funds in 2005 as a way to invest in the region. To date, we have contributed $108.9 million of a total commitment of $200 million to these funds.
The funds are managed by Permal Capital Management of Boston, which is a “fund of funds.” When we make contributions to Permal, the firm finds other funds in which to invest, and it’s those entities that supply capital to individual companies.
The latest fund, Permal Ohio Midwest Partners, was established in 2011. The three funds, which include co-investments, have pumped more than $1 billion in Ohio-based companies, which today employ 5,391 people.
Public markets account for a large percentage of the OPERS investment portfolio. Much of those investments are managed by outside firms, some of which are located in Ohio.
As of May 31, Ohio-headquartered companies manage $883.9 million in OPERS equities. Portfolio amounts range from $577 million managed by Fort Washington Investment Advisors of Cincinnati, to $20.7 million overseen by Elessar Capital of Cleveland, a small firm that’s in our Emerging Manager Program.
Further, OPERS works with several Ohio-qualified managers, which maintain a significant presence in Ohio. These entities manage more than $6.3 billion in OPERS assets, led by BlackRock Financial, which oversees more than $3.1 billion in defined benefit and defined contribution assets.
Finally, our holdings include about $538 million in Ohio-based company stock. As of Dec. 31, 2012, these investments were topped by more than $209 million we owned in Procter & Gamble Co. shares. You can see the top 10 list of Ohio holdings on page 108 of our 2012 Comprehensive Annual Financial Report.
OPERS works with several Ohio-involved real estate managers, and we have made many direct investments in real estate projects across the state.
As of June 30, we’ve committed $889.1 million to eight Ohio-related real estate investment firms. They include $475 million to Chicago-based manager Heitman to fund development projects in Ohio, and $175 million to Fillmore Capital Partners, which invests in Ohio-related projects.
Also, OPERS has committed $542 million in direct funding toward Ohio-focused projects, including apartments in New Albany, a built-to-suit warehouse in Marion for Whirlpool and hotel acquisition through Rockbridge Hospitality of Columbus.
- In the year ended June 30, 2012, OPERS paid $4.6 million in commissions to Ohio-qualified brokers.
- OPERS paid $19.6 million in fees to Ohio-qualified managers in the year ended June 30, 2012.