Defined Benefit Fund Risk Mitigation Strategies

OPERS seeks to diversify assets by obtaining broad exposure to Risk Mitigation Strategies. Risk Mitigation Strategies are designed to provide diversifying properties that are often challenging to attain through traditional asset classes. Ideally, Risk Mitigation Strategies will provide liquidity in distressed market environments and allow for asset class rebalancing. Long Duration U.S. Treasury strategies may be implemented through index-based strategies with low expected tracking error relative to the strategy or manager benchmarks. Other strategies, including Trend Following and Alternative Risk, typically utilize active strategies and are expected to have a higher tracking error relative to their strategy or manager benchmarks. Long Duration Treasuries, Trend Following and Alternative Risk Premia are implemented as sub-asset classes in approximately equal proportions.