The Oregon Investment Council (OIC) held its regular meeting this morning at the Oregon State Treasury’s office in Tigard. At the meeting, the Council received a second-quarter performance update for the Oregon Public Employees Retirement Fund (OPERF), reviewed investment risks as part of its routine asset liability study, and conducted its annual review of OPERF’s fixed income portfolio, among other business.
During the quarterly review, staff and consultants reported that OPERF earned a 3.2% return in the second quarter of 2025, outperforming its benchmark return of 3.0%, noting the performance came amid a period of strong US stock gains and continued market uncertainty around global trade policies and tariff uncertainties.
Staff also reported as of June 30 that OPERF’s year-to-date earnings outpaced the portfolio benchmark by nearly 1%, supported by solid performance in both public and private market holdings. Notably, the private equity portfolio returned 6.3%, compared with its reference benchmark (Russell 3000 Index + 3%) return of -0.8% for the same period.
“At a time of market volatility, it is encouraging to see OPERF outperform its benchmark, given the importance of the fund’s returns to the stability of public employee retirements and the ability of public employers to deliver programs the public depends on,” said Oregon State Treasurer Elizabeth Steiner, MD. “However, we always want to measure results based on long-term performance. As we work with OIC to develop our asset allocation strategy, we want to develop a game plan that will provide the returns we need for the future.”
As part of the quarterly update, it was reported OPERF’s 5-year performance for the period ending June 30, 2025, had delivered earnings of 9.4%, outperforming the state retirement system’s 6.9% assumed rate of return. Council consultant, Meketa, noted the fund’s performance during this 5-year period ranked near the top third of pension fund peers.
During the meeting, the Council also received a risk survey overview from its consultants that will be completed by the OIC and senior investment staff members at Treasury as part of the ongoing asset liability study.
A representative from Oaktree Capital presented insights they’re taking away from current market trends and the implications for investment managers.
The annual fixed income review highlighted the role of more than $40 billion in internally managed assets that provide stability and liquidity for funds under Treasury management. Staff noted the asset class continued to meet or exceed benchmarks over the long term, providing OPERF and other state funds, such as the Oregon Short Term Fund and the Oregon Local Government Intermediate Fund, the ability to preserve capital and generate steady returns for short-term operational needs.
Other agenda items included receiving updates regarding new investment commitments from Chief Investment Officer Rex Kim and providing time for public comment.
This new release is issued under the auspices of the Oregon State Treasury. 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, October 22.
