Oregon Investment Council, Tigard, which runs the $69 billion Oregon Public Employees Retirement Fund, Salem, tabled a decision on whether to adopt a new target asset allocation that would reduce private equity by 2.5 percentage points to 17.5% and increase liquid alternatives by 2.5 percentage points to 5%, said Michael Cox, council spokesman, in an e-mail.
The rest of the pension fund's target allocations would remain the same. They are 37.5% to global equities and 20% each to fixed income and real assets. The council wanted more information and time to decide. It has not yet been determined when the council will reconsider the issue.
Separately, the council changed the asset allocation of its $44.9 million Higher Education Endowment Fund to 70% global equities and 30% fixed income in light of the upcoming June 30 dissolution of the Oregon University System and the liquidation of the endowment assets, which will be distributed to most of the state's seven public universities, which will adopt independent boards on July 1.
The endowment's target asset allocation was 25% each domestic equities, international equities and fixed income; 10% private equity; and 7.5% each real estate and Treasury inflation-protected securities.
Staff is working with the managers to liquidate assets as necessary, or to transfer ownership interests in the case of private market assets, a report to the council states.
The council also changed its standard and procedures document for its $1.1 billion opportunity fund to allow the chief investment officer — upon favorable recommendation from both the director of alternative investments and the consultant — to, in part, approve the sale or purchase of a fund interest, and to commit up to an additional $25 million to an existing investment fund to either recapitalize the fund with additional equity, acquire all or part of another limited partner's interests in the fund or co-invest with the fund. The additional commitments will have to be on equal or better terms than the existing investment fund terms.
