San Francisco City & County Employees’ Retirement System is considering a new asset mix, part of a review that the $16.4 billion system conducts every three years. System officials are evaluating four different allocation targets, with expected returns between 7.34% and 7.82%; the current policy targets a return of 7.46%.
The mix with the lowest expected return of 7.34% allots 35% to fixed income, 21% to domestic equity, 19% to international equity and 13% to private equity. The asset allocation with the highest return allocates 29% to domestic equity, 25% to international equity, 20% to fixed income and 14% to private equity. The current targets are 30% fixed income, 28% domestic equity, 20% international equity and 12% private equity. All four proposals increase the real estate target to 12% from 10%.
The system’s board will voted on a new allocation at its June 10 meeting.
