Oregon’s investment chief would not recommend adding any more investment risk to the state’s $100bn portfolio, saying in a recent meeting that investment income alone will have a tough time bridging the state pension’s $22bn unfunded liability.

The Oregon Investment Council, whose pool of assets includes the $76bn Oregon Public Employees’ Retirement Fund, had a special meeting in late April to discuss board governance, policy, and its appetite for investment risk. CIO John Skjervem said at the meeting that he appreciated the desire to maximize risk-adjusted investment returns, but said that investment staff couldn’t simply kick their strategies into higher
gear.

“We don’t have another gear to go to,” Skjervem said. “This is as aggressive a portfolio as I feel comfortable managing, and I believe to a person my staff feels the same way.”

Read the full story: Oregon CIO uncomfortable with adding more investment risk

Published by Money Management Report/Pageant Media.