Oregon Investment Council on Wednesday renewed the contracts of its four consultants — general investment consultants Meketa Investment Group and Aon, real assets consultant Aksia and diversifying strategies portfolio consultant Albourne — for two more years ending Dec. 31, 2026.
The council, which oversees the Tigard, Ore-based $93 billion Oregon Public Employees Retirement System, rebids consultant contracts every seven years. Aksia's contract will reach the seven-year point at the end of the new two-year extension, requiring council officials to launch an RFP before the end of the final contract extension, Ben Mahon, senior investment officer, alternatives told the council.
The pension fund had $8.9 billion in real assets and $5 billion in diversifying strategies as of June 30.
Separately, OPERF earned a net 3.2% return for the fiscal year ended June 30, dipping below its 3.7% benchmark.
The pension fund outperformed its benchmark for the three and five-year periods, but underperformed for the 10-years ended June 30. OPERF returned a net annualized 11.2% compared with its 9.3% benchmark for the three years, a net annualized 8.1% vs 7.5% for the five years and a net annualized 8.3% vs 8.4% for the 10 years.
In the one-year period, the pension fund's U.S. Equity portfolio earned 16.2%, underperforming its Russell 3000 index of 19.0%. Private equity's return for the 12-months ended June 30 was -1.8%, outperforming its -5.8% benchmark.
Oregon's pension fund earned a net 6.3% return for the fiscal year ended June 30, 2022.
The pension fund's actual allocation on June 30 was 27.8% private equity, 20.5% public equity, 18.3% fixed income, 14.6% real estate, 9.5% real assets, 5.3% diversifying strategies, 2.7% opportunity and 1.1% cash. It's target allocation is 27.5% public equity, 25% fixed income, 20% private equity, 12.5% real estate,7.5% real assets and 7.5% diversifying strategies.