Oregon Treasurer Pushes New Pension Strategy Toward Clean Energy, Away From Private Equity

Oregon Treasurer Mulls 2026 Pension Fund Strategy

As the Oregon Investment Council (OIC) gears up to revise its 2026 asset allocation goals for the Oregon Public Employee Retirement Fund (OPERF), Treasurer Warren offered her thoughts on the state’s investment strategy. She outlined four guiding principles:

Principle 1: A diversified portfolio is a good strategy that balances returns and risks over the long term.
Principle 2: The OPERF portfolio must be structured to find opportunities in the market conditions of today and the future, not yesterday.
Principle 3: A clean energy future is coming, and Treasury can adapt its investment strategies to take advantage of the profitable opportunities in this growing sector.
Principle 4: Engagement with beneficiaries is a necessary and critical part of the work to support OPERF over time and in perpetuity.

In her letter, which reflects her own views and not those of other OIC members. Treasurer Steiner called for Oregon to take a fresh look at the way PERS funds are invested, given rapid changes in the national and global economies.

Reasurer Warren said, “As a physician, I believe strongly in making evidence-based decisions. The diversified strategies and asset allocations OIC and Treasury have pursued in the past must continue to meet OPERF’s need to generate the necessary growth, liquidity, and security today and tomorrow, at a time of profound change.”

Treasury staff have already reduced the share of the PERS portfolio investments in private equity from 28% to 26%, bringing the state’s private equity holdings within the range the OIC has approved of 20%-26% of the fund’s assets under management.

Treasurer Warren supports the efforts of Treasury’s investment staff to continue reducing that amount towards OIC’s target of 20%.