Investments

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Current Portfolio

As of  March 31, 2022

Asset Class Market Value Actual Target
Global Public Equity $10,111,407,255 45.0% 47.0%
Private Equity $3,422,672,738 15.2% 13.0%
Fixed Income $2,300,028,976 10.2% 11.0%
Credit $1,647,602,786 7.3% 7.0%
Real Assets $2,428,218,919 10.8% 12.0%
Risk Mitigation $2,096,018,976 9.3% 10.0%
Unique Strategy $71,568,416 0.3% 0.0%
Cash & Cash Overlay $403,293,466 1.8% 0.0%
Total Assets $22,480,811,532 100.0% 100.0%

 

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Investment Performance
Market Commentary – Quarter ended March 31, 2022

Global equities sold-off during the first quarter of 2022 as supply chain constraints and inflationary pressures were worsened by Russia’s invasion of Ukraine. The S&P 500 generated -4.9% during the first quarter with value and large-cap stocks outperforming their growth and small-cap counterparts, respectively. Global equities were more challenged and developed markets lost 5.9% while emerging markets were down 7%.

The Federal Reserve turned hawkish to combat inflation, raised rates by 25 bps and indicated further hikes later in the year. Bond yields rose sharply and the yield curve flattened, which saw the spread between the 2 and 10-year yields drop to only 2 bps. US treasuries declined 5.2% while investment grade and high yield corporate bonds lost 5.9% and 4.8%, respectively. Emerging markets debt’s poor performance continued in the first quarter as the asset class generated -6.5%.   

Commodity prices soared as the Russian invasion of Ukraine restricted the global supply of energy and wheat. The Bloomberg Commodity Index generated 25.55% during the first quarter and energy was the best performing sub-component of the index. WTI crude oil returned 38.23% and the price of a barrel ended the period at roughly $100.

As of March 31, 2022, OCERS’ portfolio had a market value of $ 22.5 billion, up from $ 22.4 billion at the end of the fourth quarter. OCERS’ portfolio generated a quarterly return of -1.8% relative to the policy benchmark return of -1.6%. For the trailing one-year period, OCERS’ portfolio generated 11.4% relative to the Policy Index return of 11.1%. This placed OCERS in the top 8% of best performing pension plans in its peer group.

  Q1 1 Year 3 Year 5 Year 10 Year
Total Fund (net of fees) -1.8% 11.4% 11.4% 9.5% 8.0%
Policy Benchmark -1.6% 11.1% 11.1% 9.4% 8.4%