Oregon Public Employees Pension Fund Performance and Diversifying Strategies Portfolio Growth Highlighted At Oregon Investment Council Meeting

The Oregon Investment Council (OIC) held its regular meeting on December 3. At the meeting, the Council received a third-quarter performance update for the Oregon Public Employees Retirement Fund (OPERF) and conducted its annual review of OPERF’s Diversifying Strategies portfolio, among other business.

During the quarterly review, staff and consultants reported that OPERF earned a 2.1% return in the third quarter of 2025, underperforming its benchmark return of 5.4%, noting the performance came amid a period influenced by Federal rate cuts, robust AI-driven investments, and healthy corporate earnings.

Staff also reported for the period ending September 30, OPERF’s 5-year annualized earnings outpaced the State of Oregon retirement system’s 6.9% assumed rate of return by nearly 2%, finishing the period with 8.8% portfolio-wide earnings.

“Today’s reviews show that Oregon’s pension fund investment portfolio remains on strong footing, with strategic diversification continuing to deliver real value for beneficiaries,” said Oregon State Treasurer Elizabeth Steiner, MD. “The Council’s and Treasury staff’s work helps ensure we’re building long-term stability and keeping the pension fund well-positioned for the future.”

As part of the quarterly update, Council members continued discussions on OPERF’s asset allocation and rebalancing efforts.

The annual diversifying strategies review highlighted the role of the portfolio’s $5.4 billion in managed assets that provide diversification and opportunities for enhanced long-term returns for the state pension fund. Staff noted the asset class continued to deliver strong returns, as of September 30, 2025, the portfolio’s year-to-date return stood at 7.1%, with a five-year annualized return of 9.4%. These results outpaced the portfolio’s benchmarks for the respective time periods, underscoring the Diversifying Strategies portfolio’s value as a complement to OPERF’s traditional equities and fixed income holdings.

Other agenda items included receiving updates regarding new investment commitments for Chief Investment Officer, Rex Kim, and providing time for public comment.

The OIC is a six-member board responsible for setting investment policy for OPERF and other state investment funds. Four members are appointed by the governor. The state treasurer and the director of the Public Employees Retirement System serve by position.

The next OIC meeting is scheduled for Wednesday, January 21, 2026.