Merced County (Calif.) Employees' Retirement Association is conducting an asset-liability study, said Angelo Lamas, interim plan administrator of the $628 million pension fund, in an e-mail.
The pension fund is conducting the study because “the board feels that having an asset allocation strategy will help protect from market ups and downs,” Mr. Lamas said.
Investment consultant Verus Advisory is conducting the study, which is scheduled to be completed in July; no specific changes in asset classes have yet to be considered.
The current target allocations are 28.4% domestic equities, 17.5% international equities, 14.5% domestic fixed income, 8% real estate, 7% private equity, 6.1% emerging markets equities, 5% high-yield fixed income, 4.5% hedge funds, and 3% each bank loans, infrastructure and natural resources.
As of Feb. 29 the actual allocation was 31.7% domestic equities, 26.6% fixed income, 20.7% international equities, 8.9% real estate, 6% private equity, 4.5% hedge funds, 0.9% cash, 0.5% infrastructure, and 0.2% natural resources.