Oregon Investment Council Reports Strong Fund Performances in 2025 and Climate Positive Investments

The Oregon Investment Council (OIC) held its regular meeting on April 15, where it reviewed 2025 year-end investment reports for the Oregon Public Employees Retirement Fund's (OPERF) Opportunity Portfolio, which earned 11.2% returns for the one-year period, and multiple state-managed funds that delivered strong performances. The Council also received an update on OPERF's climate report, noting continued investments in climate-positive strategies.

"These performance updates show that Treasury's investment team continues to steward a wide range of portfolios through uncertain economic times, producing solid returns for Oregonians" said Oregon State Treasurer Elizabeth Steiner, MD.

The annual Opportunity Portfolio review highlighted its $2.85 billion in managed assets and its role as a flexible investment program designed to enhance returns, diversify OPERF, and incubate potential new strategic asset classes. The portfolio delivered an 11.2% return for the one-year period ending, December 31, 2025, reinforcing its role in pursuing niche and opportunistic investments.

The Council also reviewed 2025 performance for the Individual Account Program (IAP), a defined contribution retirement program serving members of the Oregon Public Employees Retirement System. The program delivered strong returns across its target-date funds, ranging from 12.8% to 8.1%, reflecting favorable market conditions and a diversified approach that balances long-term growth and risk.

Additionally, the Council reviewed 2025 performance for the Oregon Savings Growth Plan (OSGP), the state's 457(b) deferred compensation program. The plan serves more than 42,000 participants across state and local governments and totaled $4.53 billion in assets under management at year-end. Equity and target-date investment options were among the strongest contributors to performance, with the Passive International Stock option generating a 33% return for the period ending December 31, 2025.

The Council also received an update on OPERF's climate-positive investments. Staff detailed the transition to a new data provider in the prior reporting period as well as provided an overview of how emissions tracking is calculated. Key accomplishments include:

• OPERF's emissions intensity - measured as Carbon to Revenue (C/R) - declined by more than 50% between January 1, 2022, and December 31, 2023.

• Climate-positive holdings in the Real Assets portfolio doubled from $1.2 billion in on January 1, 2022, to $2.4 billion as of June 30, 2025.

• After increasing from 2022 to 2023, private market fossil fuel holdings have declined each year through June 30, 2025.

Lastly, the Council reviewed the results of an independent internal audit of Treasury's private equity program conducted by Macias Gini & O'Connell LLP, which received the highest possible rating of "satisfactory." The audit assessed governance, investment manager due diligence, risk management, fiduciary oversight, and investment operations. The rating received reflects the audit finding that internal controls are operating effectively to safeguard assets and minimize exposure to financial losses.