The fund was ranked among the top 50 pension fund performers whose portfolios are larger than $10 billion
Salem, OR—The Oregon Public Employees Retirement Fund (OPERF) was recognized today as one of the top performing funds in 2022 among pension plan peers whose portfolios are larger than $10 billion.
Ranked 2nd out of 50 qualifying plans for returns generated in calendar year 2022, Treasury managed to navigate volatile markets and minimize risks to end the year with a small loss of -1.1%. Over that same period, the average portfolio in the peer group lost nearly 10%. OPERF is managed by the Oregon State Treasury in accordance with policies and allocation targets set by the Oregon Investment Council. The fund closed 2022 with a value of $91.9 billion.
OPERF’s strong performance amongst peers extends beyond 2022. Over the last 20 years, the fund’s performance ranked first out of 42 peers, with an annualized return of 9.4%.
Treasury’s Investment Division manages OPERF to meet long-term obligations for more than 200,000 beneficiaries and short-term operational needs, such as over $425 million in monthly retirement payments to Oregonians.
“Our fiduciary responsibility to manage the state’s pension fund in a responsible manner that delivers results for Oregon’s public employees — our teachers, firefighters, and public health nurses — is one that Treasury, the Oregon Investment Council, and our partners take very seriously,” said State Treasurer Tobias Read, who sits on the Oregon Investment Council. “We’re committed to managing a portfolio that meets our beneficiaries’ needs today and in 30 years.”
Despite a tumultuous 2022, which saw record-high inflation and global economic uncertainty wipe out much of the returns pension funds across the country generated in 2021, OPERF’s performance was the byproduct of Treasury’s long-term strategic focus and oversight of Oregon’s public employee pension fund.
Treasury’s Investment Division manages OPERF to generate sustainable returns and perform in various market conditions, evident by the fund generating 20% returns in a strong market year like 2021 and proving resilient in down market years like 2022. The latter results in billions of dollars remaining available for key services like education, housing, and addiction treatment instead of higher pension fund contribution rates for employers.
“I’m proud of our team’s performance in a year like 2022 just as much as 2021. Our investment decisions are designed to help us benefit when the market is booming and to also be capable of weathering downturns and market volatility, to limit losses,” said Treasury’s Chief Investment Officer, Rex Kim.
The peer ranking report released by Wilshire Trust Universe Comparison Service factors in performance data for tax-exempt pension plans across the country. OPERF has consistently landed near the top of the peer rankings, most recently achieving the top ranking for fiscal year ending June 30, 2022.
About Oregon State Treasury
The Oregon State Treasury improves the financial well-being of all Oregonians. We provide low-cost banking, debt management, and investment programs for governments and empower Oregonians to invest in themselves and their loved ones through the Oregon College Savings Plan, Oregon ABLE Savings Plan, and OregonSaves. Treasury also facilitates the state’s Unclaimed Property Program.