Sacramento County (Calif.) Employees’ Retirement System may add private equity and commodities or other real return strategies to its asset allocation, with targets of up to 5% each, said Jeffery States, CIO. The new mandates could be funded from domestic equity or fixed income.
The board of the $6 billion fund considered the changes at its Thursday meeting as part of an asset allocation switch recommended by Mercer Investment Consulting. The board will vote on the allocation at its June 21 meeting; no decision has been made yet on how to fund the changes. The fund’s current asset allocation is 35% domestic equity, 25% fixed income, 20% international equity, 15% real estate and 5% hedge funds of funds.
Separately, the fund’s investments returned 2.4% for the quarter and 12.1% for the year ended March 31, short of its 12.7% yearly target, said Mr. States. The fund is slightly underinvested in real estate, and the domestic equity portfolio did not post strong returns, dragging down performance, he said.
