It’s time to revisit Oregon’s investment strategy. Here’s how.

Every Oregonian has a stake in the state’s investment returns, as recent reporting from the Oregon Journalism Project and Lookout Eugene-Springfield shows. The world is changing, and Oregon’s investment strategy must keep pace. It is time for us to look at the way we invest all our assets, including our holdings in private equity.

Many people have questioned Oregon’s private equity investment strategy, raising concerns about transparency and short-term performance. As Oregon’s newly elected treasurer, I fully support downshifting the private equity exposure of the Public Employee Retirement System, commonly known as PERS — as Oregon State Treasury is already doing.

However, Oregon’s investment strategy cannot be limited to a fixation on one type of investment. The state needs a comprehensive strategy that is focused on long-term growth at a time of mounting change and uncertainty. We cannot let the shine of one- or two-year returns blind us from making hard choices that must pay off over decades.

In coming months, Oregon faces some major decisions about how we invest approximately $100 billion in PERS funds. Every Oregonian has a lot riding on the success of the state’s investments, including teachers, firefighters and other public workers. 

Here’s why: Investment returns are one factor that affects the rates that public agencies must pay toward PERS benefits — along with a variety of actuarial, economic and other factors. Strong returns buffer schools, public safety and other services we all depend on from the pressure of pension obligations on their budgets.

Who will make these decisions about Oregon’s investment strategy? The Oregon Investment Council is a board of five voting members, including myself and four investment professionals appointed by the governor. Over the coming months, we will decide how Oregon should invest its assets for the next four years.

As a physician, I believe in making evidence-based decisions. Over the past decade, the PERS fund grew by nearly 8 percent, exceeding the growth target PERS had built into its public agency rates. This healthy growth was partly driven by investments in private assets, which will always have a place in Oregon’s investment portfolio. 

However, artificial intelligence, tariffs, inflation, a weak job market and the disruptions of climate change are all creating economic uncertainties for investors. We need to be clear-eyed about how our investment decisions can take advantage of the opportunities and avoid the risks they create.

Here’s how I will approach the decisions that the Oregon Investment Council must finalize in 2026:

First, the PERS portfolio must be invested in a diversified portfolio that balances returns and risks over the long term. 

Second, Oregon’s investments must be structured to find opportunities in market conditions of today and the future, not yesterday. In an environment of high interest rates and stubborn inflation, it is important to balance risk and growth. Our portfolio structure may need to adapt.

Third, a clean energy future is coming, no matter how much the federal administration tries to strangle wind and solar energy. Treasury should adapt its investments to take advantage of profitable, climate-positive opportunities as clean energy plays a larger role in meeting the energy needs of Oregon and the rest of the world.

This year, Oregon adopted the Climate Resilience Investment Act, a landmark climate-positive investment law I championed. This law gives the state Treasury the tools to take advantage of clean energy’s growth around the world and reduce our exposure to dirty, outdated fossil fuel investments. We must follow through.

Fourth, I am committed to hearing from PERS members about how we invest their retirement dollars. At Treasury, we meet regularly with labor leaders to discuss how we best honor our trusted role as investors for PERS members. I am committed to giving PERS members more opportunities to talk with me and ask questions.

As a fiduciary, I work for hardworking public employees — and all Oregonians. These principles will guide my input into Oregon’s investment strategy as a member of the investment council. I am committed to listening to the best advice we can get to set PERS’ investment strategy, and being transparent about the returns Oregon’s strategy generates over the long term.