Oregon Investment Council Reviews Fund Benchmarks and Reports Strong Performance of State Accident Insurance Fund

The Oregon Investment Council (OIC) held its regular meeting on October 21, where it received an analysis of the Oregon Public Employees Retirement Fund's (OPERF) investment benchmarks. The OIC also conducted annual reviews of OPERF's Diversifying Strategies portfolio and the State Accident Insurance Fund, which both met or outperformed their respective benchmarks in the most recent 1-year reporting period.

"Our commitment to portfolio diversification within OPERF continues to pay dividends throughout different market cycles and support the fund's long-term objectives," said Oregon State Treasurer Elizabeth Steiner, MD. "These reviews allow the Oregon Investment Council, Treasury staff, and consultants the opportunity to evaluate investment strategies, examine performance over short- and long-term frames and in response to evolving market environments."

The Council conducted the annual performance and strategy of OPERF's Diversifying Strategies portfolio, which provides enhanced diversification of the fund's broader investment portfolio. For the 1-year period ending Aug. 31, 2026, the portfolio met its benchmark by earning an 8.3% return. Staff noted over the trailing three- and five-year periods, the Diversifying Strategies portfolio generated annualized returns of 7.5% and 8.8%, respectively, outperforming its benchmark by 0.3 and 3.6 percentage points.

Following the adoption of new asset allocations for OPERF at its previous meeting, the Council received an analysis of OPERF's investment benchmarking framework from external investment consultant Aon Investments. The benchmarks help OIC evaluate performance across asset classes and assess whether investment strategies are meeting their objectives. The consultants reviewed the current OPERF benchmarks for appropriateness, transparency, and short- and long-term accuracy. They highlighted significant limitations in the current Russell 3000+3% benchmark used for private equity. Due to the long-term horizon of private market investments and the challenges that horizon presents regarding short-term performance measurement, consultants emphasize that it is not appropriate to track this portfolio's performance on a short term basis such as monthly or even one-year time periods since doing so may not provide an accurate assessment of portfolio performance.

The Council also received the annual investment performance report for the State Accident Insurance Fund's (SAIF), Oregon's not-for-profit workers' compensation insurer. Valued at $4.6 billion as of June 30, 2026, the fund's primary objectives are preserving capital and generating stable, predictable investment returns to meet liquidity needs. Staff reported for the period ending June 30, 2026, SAIF's investment portfolio outperformed its benchmark across one-, three-, five- and 10-year periods.

Other agenda items included receiving updates regarding new investment commitments for Chief Investment Officer, Rex Kim, and providing time for public comment.

The OIC is a six-member board responsible for setting investment policy for OPERF and other state investment funds. Four members are appointed by the governor. The state treasurer and the director of the Public Employees Retirement System serve by position.

The next OIC meeting is scheduled for Wednesday, December 2, 2026.