The Oregon Investment Council adopted new long-term asset allocation targets for the Oregon Public Employees Retirement Fund at its September 2 meeting, concluding a multi-year study of the pension fund's investment strategy and obligations.
The newly adopted allocations are projected to generate returns of 7.3 percent, exceeding the Oregon Public Employees Retirement System's assumed rate of 6.9 percent. The allocation targets include Public Equity at 26 percent, Fixed Income at 20 percent, Private Equity at 19 percent, Real Estate at 10 percent, Real Assets at 10 percent, and Diversifying Strategies at 7.5 percent. The allocations formally establish Credit as a standalone asset class, shifting investments from existing Fixed Income and Opportunity portfolios.
The study examined the relationship between OPERF's investments, expected market conditions, and forecasted pension obligations across the fund's approximately $104 billion in assets. The changes include reducing the Private Equity allocation target from its previous level and allocating the largest percentages to Public Equity and Fixed Income. Real Assets, which returned 12.23 percent over the previous five-year period ending July 31, 2026, received increased allocation.
Oregon State Treasurer Elizabeth Steiner said the decision positions the fund "for the future growth, stability, and liquidity we need to stay true to our obligations to hard-working educators, first responders, and other public employees."
Updates to investment policies reflecting the newly adopted targets will be completed by early 2027, with the portfolio transition occurring over several years.