Kern County Employees' Retirement Association, Bakersfield, Calif., approved some modest changes in its strategic asset allocations at a board meeting on April 9.
Reflecting “broadly lower” capital market assumptions for 2025, the $6.2 billion pension fund, with assistance from its consultant Verus Investment, approved a reduction in the allocation for alpha pool strategies to 2.5% from 4%; and a corresponding increase in cash to -2.5% from -4%.
In an investment policy statement, KCERA said the “primary goal of the alpha pool is to generate a cash-plus return through strategies that have low beta exposure, medium to high alpha, and expectations of downside protection.”
Target allocations for global equity (33%); foxed income (25%); real assets (19%) remained unchanged. However, due to the reduction in the alpha pool figure, the overall allocation for the non-public investments slipped to 25.5% from 27%.
