(updated with correction)
Oregon Investment Council, Tigard, which manages the $57 billion Oregon Public Employees Retirement Fund, Salem, expects to commit $2 billion each year to private equity through 2012 under the council's new private equity investment plan, said spokesman James Sinks.
According to the plan, prepared by private equity consultant PCG Asset Management, the council would invest $2.3 billion annually in 2013 and 2014 and $2.5 billion annually in 2015 and 2016.
The council's private equity portfolio reached its 20% allocation target in 2008, and the portfolio is expected to exceed the target for the next three to four years, the plan states. As of June 30, more than half of the portfolio, 57.3%, is invested in leveraged buyouts — above the 51.4% average allocation of other large public pension funds, according to the plan.
Separately, the council hired Charles Schwab to manage a new self-directed brokerage option and added both a Callan active smidcap equity fund and the Dimensional Fund Advisors Emerging Markets Equity Fund to the list of options for the state's $1.14 billion 457 plan.
The plan now has nine investment options plus the new brokerage option, which was created following a survey of participants, Mr. Sinks said. The Callan and DFA funds were added because the council decided the plan was underweight in those sectors.