Stanislaus County Employees' Retirement Association, Modesto, Calif., hired Verus Advisory as private markets consultant, said Chris Wisdom, retirement investment officer.
The $2.2 billion pension fund issued an RFI in April for a consultant that could design and implement a private markets program; it adopted new, long-term targets of 5% and 6% to private equity and private credit, respectively, in April 2017. Verus, also the pension fund's general investment consultant, will recommend fund commitments in the future. No RFPs will be issued.
Also, at its July 24 board meeting, the pension fund changed some target allocations based on an annual asset allocation review. The target to private equity was increased to 6%. Also, the target to emerging markets equities was increased to 6% from 5%; international developed markets equities, to 21% from 19%; and short-term government/credit fixed income, to 20% from 18%. The pension fund also created a 1% long-term target to infrastructure. As of March 31, the pension fund already had 1.1% allocated to infrastructure.
Targets decreased were: domestic large-cap equities to 10% from 16%, and risk parity to 13% from 14%.
Targets that remain unchanged are: 6% private credit; 5% each, core real estate and value-added real estate; 3% each, domestic small-cap equities and U.S. Treasuries; and 1% cash.
No terminations will result from the target changes, Mr. Wisdom said.
The actual allocation as of March 31 was: 23.6% domestic large-cap equities, 17.4% international developed markets equities, 17.1% short-term government/credit fixed income; 13.4% risk parity, 7.3% core real estate, 5.4% domestic small-cap equities, 4.5% emerging markets equities, 4.4% private credit, 2.8% U.S. Treasuries, 1.9% value-added real estate and 1.1% each, cash and infrastructure.