Our Ohio-Qualified, Minority-Owned Manager Policy adds value to the system
By Michael Pramik, Ohio Public Employees Retirement System
Nov. 10, 2022 – Through our Ohio-Qualified, Minority-Owned Manager Policy, OPERS supports economic growth in Ohio and recognizes the diversity of our stakeholders while maintaining a focus of hiring the best-performing investment firms to fulfill the system’s fiduciary duty.
The OPERS Board of Trustees has a goal to increase the use of Ohio-qualified and minority-owned managers. OPERS staff uses several criteria to advance the program when we issue a request for external managers, including advancing one Ohio-qualified or minority-owned manager to the semifinal stage of a search if possible.
To fit the description of Ohio-qualified an institution must be based in Ohio or with its principal place of business in Ohio, or employ at least 500 individuals in Ohio, or have a principal place of business in Ohio and employ at least 20 Ohio residents. The minority-owned definition includes U.S.-domiciled companies with at least 51 percent ownership based on one or a combination of the following groups: African American, Native American, Hispanic American, Asian American, women-owned or disabled veteran-owned.
As of the end of 2021, OPERS employed eight Ohio-qualified managers overseeing a market value of $3.1 billion, and three minority-owned managers overseeing $1.6 billion. During 2021 OPERS paid $1.1 million in equity commissions to and recorded $9.5 billion in fixed-income trading with Ohio-qualified brokers.
Over the years, OPERS has had several Ohio-focused private equity investments and maintains various Ohio-focused real estate investments. In addition, our 55-person staff oversees $53.3 billion of assets in-house, saving millions a year in management fees.