San Diego County Employees Retirement Association's investment board is scheduled to select a new asset mix, according to the agenda for the $9.5 billion pension fund's Thursday board meeting.
One mix under consideration would dramatically reduce SDCERA's fixed-income allocation to 15% from 60% in part by eliminating a 40% allocation to U.S. Treasuries. That asset allocation, which is favored by the pension fund's general investment consultant, Wurts & Associates, would also add allocations of 20% to risk parity and 5% to private credit, and reduce emerging markets equities to 3% from 5% and international developed markets equities to 7% from 10%.
Separately, the board is expected to commit $100 million to Apollo Global Management's latest opportunistic credit fund, Apollo Credit Opportunity Fund III; $800 million to SSG Capital Management's third Asia special situations and distressed investment fund, SSG Capital Partners III; and $75 million to Energy & Minerals Group Fund III.
