Stanislaus County Employees' Retirement Association, Modesto, Calif., increased its targets to domestic equities, private infrastructure, private debt and real estate following an asset-liability study.
The $2.3 billion pension fund's board approved the new asset mix at its Nov. 24 meeting, confirmed Stan Conwell, retirement investment officer..
StanCERA approved increases in the targets to domestic equities to 20% from 17%, private debt to 8% from 6%, private infrastructure to 7.5% from 2%, core real estate to 6.5% from 5%, value-added real estate to 6% from 5% and U.S. Treasuries to 6% from 3%.
The pension fund also approved the creation of a new 3% target to liquid absolute return strategies.
Also, StanCERA approved decreases in targets to international equities to 20% from 23%, risk parity to 10% from 13%, cashflow-matched bonds to 7% from 11%, private equity to 5% from 6%.
The pension fund also eliminated the 8% target to short-term government/credit fixed income.
Only the target to cash remains unchanged at 1%.
New investment consultant NEPC conducted the asset-liability study. StanCERA hired the firm earlier this year to replace Verus Advisory following an RFP process. Mr. Conwell said NEPC will conduct manager searches and does not know whether there will be open RFPs issued.
As of Sept. 30, the actual allocation was 22.1% international equities, 19.5% domestic equities, 14.4% risk parity, 9.1% cashflow-matched bonds, 8.3% short-term fixed income, 6.8% private equity, 6% core real estate, 4.5% value-added real estate, 3.8% private credit, 3.1% U.S. Treasuries, 1.7% infrastructure and 0.7% cash.
