Phase 4 (2014–Present)
The fund’s management felt that the significant decline in oil prices since mid-2014 and lowered production levels were likely to persist through several business cycles, requiring a change in strategy to maintain the long-term objectives of the funds. They sought government approval for lower withdrawals from the fund, higher equity exposure, and the flexibility to vary asset class policy weights by as much ±5% for each asset class from the static weights that had previously existed. The government reaffirmed its commitment to the fund given in Phase 3, and legislative approval was received for these changes, including the ability to increase public equity exposure to 65% and reduce investment-grade bond exposure to as little as 7.5%. Of the remaining authorized assets, no one asset class could have a weight in excess of 10%.
The changes that were allowed in OHF’s strategic asset allocation in Phase 4 are best classified as relating to changes in:
- constraints.
- beliefs.
goals.
