The Oklahoma Public Employees Retirement System (OPERS) is the defined benefit pension plan serving state, county, and local government employees in Oklahoma. Managing approximately $12 billion in total assets, OPERS provides retirement security for tens of thousands of public workers across the state.
Investment Strategy
OPERS follows a long-term, diversified investment strategy designed to meet its actuarial assumed rate of return while managing risk. The portfolio is allocated across public equity, fixed income, real estate, and alternative investments. The Board of Trustees establishes the strategic asset allocation, which is informed by periodic asset-liability studies and capital market assumptions.
Public equity represents the largest component of the portfolio and includes both domestic and international holdings. Fixed income provides stability and income generation, with allocations to investment-grade bonds and other credit instruments. The system maintains a moderate risk profile consistent with its long-term liability obligations.
OPERS has developed its alternatives allocation over time, recognizing the diversification benefits and potential return enhancement that private markets can provide to a long-horizon institutional portfolio.
Private Markets Approach
OPERS invests in private equity through limited partnership fund commitments. The private equity program includes exposure to buyout, growth equity, and other private capital strategies. The system targets relationships with established general partners who demonstrate strong track records and alignment of interest.
Real estate investments form part of the alternatives allocation, with exposure through commingled funds across core and value-add strategies. The system evaluates real estate opportunities for income generation, inflation protection, and diversification from public markets.
The system’s approach to private markets emphasizes careful manager selection and prudent commitment pacing. Fund managers seeking allocations from OPERS should be prepared to demonstrate consistent performance, transparent reporting, and a well-defined investment process. The due diligence process involves review by internal staff, external consultants, and ultimately the Board of Trustees for approval of new commitments.
Frequently Asked Questions
What types of alternative investments does Oklahoma PERS hold?
Oklahoma PERS allocates to alternative investments including private equity, real estate, and other diversifying strategies. The system's alternatives program is designed to enhance returns and reduce overall portfolio volatility relative to public markets.
How large is the Oklahoma PERS fund?
Oklahoma PERS manages approximately $12 billion in total assets for the state's public employee retirement system. The fund serves state, county, and municipal employees across Oklahoma.
What is the governance structure for Oklahoma PERS investment decisions?
The OPERS Board of Trustees oversees investment policy and asset allocation decisions. The board works with internal investment staff and external investment consultants to manage the portfolio and evaluate new investment opportunities.
