Investments
Statement of Investment Policy
How big is the OPERS investment portfolio?
As of December 31, 2022, OPERS had $10.2 billion in total assets and URSJJ had $353 million in total assets.
How big is the OPERS investment portfolio?
As of June 30, 2021, OPERS had $12.5 billion in total assets and URSJJ had $433 million in total assets.
What is the portfolio invested in?
Broadly speaking the OPERS portfolio is invested in three major asset classes which are U.S. stocks, international stocks and domestic bonds. Each asset class is very broadly diversified. For example, OPERS’ stock portfolio alone has a stake in over 2,800 companies. The current strategic target allocation calls for 40% U.S. stocks, 28% international stocks, and 32% domestic bonds.
How do you determine the amount to invest in each asset class and who makes that decision?
The portion of the portfolio allocated to each asset class is the most important decision an investor can make and it has the greatest impact on long-term investment results. The System’s portfolio asset allocation is decided after intensive analysis and study. The goal is to produce the highest level of investment return at a given level of expected risk. This decision can only be made by the OPERS Board of Trustees. The investment consultant and the OPERS staff prepare the analysis to assist the Board in this decision. The asset allocation is reviewed periodically – about once every three years.
Who decides which securities to buy and sell?
How are Investment Management firms selected?
When an investment management firm is selected, can the firm buy any type of investment with the System’s money?
How is the investment consultant hired and what is the consultant’s role?
How is my retirement benefit affected if the investment portfolio declines in value?
Is the investment structure and process used by OPERS unusual or is it fairly typical?
Below is a list of OPERS’ and URSJJ investment managers.
OPERS Balance & Asset Allocation
as of December 31, 2022
Manager | $ Mkt Value (MM) | |
Northern Trust Company | Cash Account | 39 |
Grand Centre | Commercial Real Estate | 9 |
BlackRock Financial Management | Enhanced Fixed Income | 1,583 |
Hoisington Investment Management | Interest Rate Anticipation | 273 |
BlackRock Institutional Trust TIPS Index | Interest Rate Anticipation | 391 |
Metropolitan West Asset Mgmt | Active Fixed Income | 960 |
Domestic Fixed Income | 3,207 | |
Mondrian Investment Partners | International Equity-Value | 624 |
Baillie Gifford | International Equity- Growth | 276 |
BlackRock Institutional Trust | ACWI xUS Growth Index | 316 |
BlackRock Institutional Trust | ACWI xUS Index | 1,671 |
International | 2,887 | |
BlackRock Institutional Trust | Russell 1000 Index | 1,730 |
BlackRock Institutional Trust | Russell 1000 Value Index | 308 |
Mellon Cap Mgmt | Enhanced US Equity | 591 |
State Street Global Advisors | Enhanced US Equity | 602 |
Westfield Capital | Large Cap Growth | 304 |
UBS Global Asset Mgmt | Small Cap Growth | 181 |
Barrow Hanley Mewhinney | Small Cap Value | 210 |
DePrince, Race & Zollo | Small Cap Value | 223 |
US Equity | 4,149 | |
Total Fund | 10,291.55 |
URSJJ Balance & Asset Allocation
as of December 31, 2022
Manager | $ Mkt Value (MM) | |
Northern Trust Company | Cash Account | 1 |
BlackRock Financial Management | Enhanced Fixed Income | 55 |
Hoisington Investment Management | Interest Rate Anticipation | 10 |
BlackRock Institutional Trust | TIPS Index | 13 |
Metropolitan West Asset Mgmt | Active Fixed Income | 33 |
Domestic Fixed Income | 111 | |
BlackRock Institutional Trust | ACWI x-US Index | 101 |
BlackRock Institutional Trust | Russell 1000 Index | 119 |
BlackRock Institutional Trust | Russell 2000 Index | 21 |
US Equity | 140 | |
Total Fund | 353 |