The Investments Division of the Ohio Public Employees Retirement System is a team of professionals who manage a broadly diversified portfolio. Our main goal is sustained performance, which will help to provide secure retirement benefits and health care coverage to our members.
OPERS is the 11th-largest public pension system in the United States, with assets of $88.6 billion as of Dec. 31, 2013. Our investment philosophy is governed by state statue and requires that a “prudent person” standard be applied to all investment decisions.
Under this standard, pension system fiduciaries are required to “discharge their duties solely in the interest of the fund participants and beneficiaries and with the degree of diligence, care and skill which prudent persons would ordinarily exercise under similar circumstances in a like position.”
As the responsible fiduciaries of the system, the OPERS Board of Trustees guides and determines the policies and strategies for our investments. The Board directs our investment professionals to secure the best possible returns while managing within an acceptable level of risk.
We do that primarily by asset allocation, diversifying investments within a portfolio to help reduce overall risk. Asset allocation determines which class of assets (stocks or bonds, for example) is emphasized in order to achieve our financial goals. Studies show that 90 percent of a fund's performance is determined by its asset allocation, so this set of decisions is crucial.
The Investment Division’s goals are: