Investments

Post

Current Portfolio

As of  March 31, 2023

Asset Class Market Value Actual Target
Global Public Equity $9,512,039,030  45.2% 47.0%
Private Equity $3,350,564,252 15.9% 13.0%
Fixed Income $1,621,730,698 7.7% 11.0%
Credit $1,682,635,103 8.0% 7.0%
Real Assets $2,976,597,442 14.2% 12.0%
Risk Mitigation $1,706,907,837 8.1% 10.0%
Unique Strategy $75,161,165 0.4% 0.0%
Cash & Cash Overlay $104,061,102 0.5% 0.0%
Total Assets $21,029,696,629 100.0% 100.0%
Post

Investment Performance
Q1 2023 - Performance Review

Global equities generated strong positive returns in the first quarter, showcasing resilience despite increased volatility caused by turmoil in the banking sector in the month of March. Policy makers in the US and Europe responded quickly to support the banking system and investor sentiment recovered. Developed markets equities led in terms of performance and registered a solid return of 8.5%. US stocks were not far behind as the S&P 500 experienced a gain of 7.5%. Emerging markets lagged the rest of the world as they returned 4%.

In the first quarter, the Federal Reserve hiked rates by 50 bps, representing a slower pace relative to last year’s aggressive rate increases. The yield curve inversion persisted, and yields were generally lower by the end of the first quarter. Bond returns were positive, with risker segments of fixed income outperforming other categories. US treasuries were up 3.0%, while investment grade and high yield corporate bonds posted returns of 3.5% and 3.6%, respectively. Emerging markets debt outperformed other fixed income sectors as it generated 5.2%.

The Bloomberg Commodity Index was down -5.4% during the first quarter. Energy was the worst performing sector of the index driven by lower prices in natural gas and heating oil. Additionally, prices of industrial metals declined during the period due to weaker global demand. Precious metals performed strongly led by gold, which advanced 8%.

As of March 31, 2023, OCERS’ portfolio had a market value of $21.0 billion, up from $ 20.5 billion at the end of the fourth quarter. OCERS’ portfolio generated a quarterly return of 3.3% relative to the policy benchmark return of 3.9%. For the trailing one-year period, OCERS’ portfolio generated -3.0% relative to the Policy Index return of -4.0%. This placed OCERS in the top 18% best performing pension plans in its peer group.

  3 Month 1 Year 3 Year 5 Year 10 Year
Total Fund (net of fees) 3.3% -3.0% 10.7% 6.8% 6.9%
Policy Benchmark 3.9% -4.0% 10.4% 6.6% 7.1%