Real Estate, Real Assets & PE Help Oregon Public Employees’ Have Strong 2021-22

By David G. Barry

The Oregon
Public Employees’ Retirement Fund (OPERF) enjoyed a strong 2021-22 fiscal
year – boosted by significant gains from its real estate, real assets and
private equity portfolios.

According to data presented to the OPERF board, the system at the end of June
had a gain of 6.32%, well above its negative 0.66% benchmark. In 2021, OPERF reported
a gain of 25.54%, which fell below its 26.89% benchmark.

OPERF had assets under management of $93.3 billion, up from $90 billion a year
prior.

For the fiscal 2021-22 year, OPERF saw declines in stocks (13.36%), fixed
income (9%) and risk parity (12.5%). However, it saw gains of 29.6% in real
estate, 23.1% in real assets, 24.2% in private equity and 17% in diversifying
strategies.

OPERF was certainly helped by the fact that it is overallocated to private
equity and real estate, but under allocated to stocks. According to the data, OPERF
at the end of June had 28% of its assets in private equity against a 20%
target. Likewise, it had 13.6% of its assets in real estate versus a 12%
target. On the other hand, it had only 21.1% of its assets in stocks – a sector
that has a 30% target.

For the year-to-date, OPERF is showing a loss of
1.36% – which is above its negative 5.68% benchmark. Stocks and risk parity are
each down 17% during the period.