Asset Allocation

Asset allocation is the starting point and an essential component of the investment process that is designed to create a well-diversified portfolio.  SCERS, through its investment consultant, conducts an asset allocation study at least every five years.  The result of this study is an asset class mix that seeks to achieve the long-term return objective while minimizing the risk of large losses.

Asset ClassTarget AllocationCurrent 9/30/17
Public Equity 48% 55.6%
Private Equity 9% 5.0%
Core Fixed Income 16% 19.5%
Credit Fixed Income 7% 6.9%
Real Estate 12% 10.7%
Infrastructure 3% 0.3%
Diversifying Strategies 5% 1.9%
Cash/Other - -0.2%

Note: Cash/Other may be negative due to trade versus settlement date accounting