San Mateo County Employees’ Retirement Association, Redwood City, Calif., approved changes to its target asset allocation with slight increases to alternative asset classes and decreases in domestic and international equity, recently released draft meeting minutes show.
The targets for opportunistic credit, real estate and absolute return were raised one percentage point each to 6%, 7% and 5%, respectively. Domestic equity was reduced two percentage points to 28% and international equity was reduced one percentage point to 19%.
The rest of the target allocations will remain the same — 8% risk parity, 7% private equity, 6% core fixed income, 4% core unconstrained fixed income, 3% each global fixed income and commodities, and 2% each inflation-protection bonds and real assets.
Michael Coultrip, chief investment officer of the $3.3 billion pension fund, told the board the changes “may further diversify the plan by decreasing equity risk, while keeping similar return expectations, and may decrease the volatility of returns,” according to the minutes.
Mr. Coultrip could not be reached for additional information by press time.
