Oregon Public Employee Retirement System designed to weather market turmoil

As the stock market drops, so have Oregon's investment funds for the Public Employees Retirement System and other programs.

Even before the events of the past two weeks, Oregon's total portfolio dipped about 2 percent between the end of June through the end of August. Its total available for investment dropped from $75 billion to $73.3 billion.

"However, it remains a broadly diversified investment fund and is designed to weather troughs like the one we are currently experiencing — and indeed, have weathered in the past," said Ley Garnett, a spokesman for state Treasurer Randall Edwards.

"While we prefer not to experience declines of this nature, investment return volatility is the cost of investing in financial markets for long-term gain."

Oregon started investing in stocks in the 1970s. Investments are done by managers and overseen by the Oregon Investment Council, which consists of the state treasurer and four members appointed by the governor and confirmed by the Senate.