Current Portfolio

As of  September 30, 2021

Asset Class Market Value Actual Target
Global Public Equity $10,170,095,754 47.2% 47.0%
Private Equity $2,983,764,212 13.8% 13.0%
Fixed Income $2,402,703,827 11.1% 11.0%
Credit $1,609,928,268 7.5% 7.0%
Real Assets $1,984,111,113 9.2% 12.0%
Risk Mitigation $1,952,447,556 9.1% 10.0%
Unique Strategy $60,791,163 0.3% 0.0%
Cash & Cash Overlay $405,267,574 1.9% 0.0%
Total Assets* $21,569,130,559 100.0% 100.0%

*Total Assets include $21,093 of strategies that are winding down.


Investment Performance
Market Commentary – Quarter ended September 30, 2021

The third quarter of 2021 delivered mixed returns for global equity investors due a September correction that offset prior gains. The late quarter sell-off was caused by a sharp rise in oil prices, exacerbated by constrained supply-chains, which increased fears about slowing global growth and higher inflation. The S&P 500 generated a modest return of 0.6% while developed markets were flat. Emerging market equities fared worse with a Q3 return of -8.1% due to a sharp sell-off in Chinese equities driven by government intervention in certain sectors. In the US, growth outperformed value stocks and the best performing sectors were financials and utilities.

Government bond yields in the US and Europe were unchanged by the end of the third quarter. The early drop in yields reversed as investors feared the prospect of earlier tightening in monetary policy and continued inflation pressure. US corporate bonds were resilient – high yield generated a positive return and investment grade bonds were flat.  Emerging market debt returns were negative.

Commodities’ strong run this year continued for the third consecutive quarter. Energy was the best performing sub-sector with strong demand and supply bottlenecks pushing oil prices higher. The price of West Texas Intermediate increased 4.5%. The US dollar appreciated 1.9% against a basket of G10 currencies.

 The portfolio’s market value stood at $ 21.6 billion, up from $ 21.5 billion at the end of the second quarter. OCERS’ portfolio generated a quarterly return of 1.4% relative to the policy benchmark return of 1.8%. This placed OCERS in the top 11% best performing pension plans. On a trailing one-year basis, the portfolio generated a net return of 21.9% compared to 22.3% for the policy benchmark. 

OCERS’ Total Fund (net of fees) return data as of September 30, 2021:

  Q3 1 Year 3 Year 5 Year 10 Year
Total Fund (net of fees) 1.4% 21.9% 10.7% 10.1% 8.9%
Policy Benchmark 1.8% 22.3% 10.3% 9.9% 9.1%