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State will rely less on stocks and bonds for PERS funding

The state of Oregon will put less of its investment funds into stocks and bonds, and more into leveraged buyouts and other opportunities.

The Oregon Investment Council on Wednesday agreed to new investing targets for the $63.2 billion it oversees for the Public Employees Retirement System.

The target for public stock holdings will fall from the current 43 percent of retirement fund assets to 37.5 percent, and the target for fixed income (bonds) will drop from the current 25 percent of assets to 20 percent.

The Oregon Investment Council, a five-person panel that oversees Wall Street and Oregon Treasury investment professionals, will seek to boost investments in “private equity,” which includes corporate buyout funds raised by the likes of KKR, from the current 16 percent target to 20 percent. Though the current target is to hold 16 percent of state-invested funds in private equity, those investments now account for 22 percent of current funds, a sign of how well past investments have done for the state.

The state also will boost its investments in real estate, commodities and other programs.