San Francisco City & County Employees' Retirement System increased its targets to public equities, private equity and public fixed income, and decreased its targets to absolute return and real assets, following an asset-liability study.
The $28.1 billion pension fund's board approved the changes at its Nov. 10 meeting, said Stephen Worsfold, pension fund spokesman.
The pension fund's targets to public equity, private equity and public fixed income increase to 37%, 23% and 13%, respectively, from previous respective targets of 31%, 18% and 9%, while the targets to real assets and absolute return drop to 10% each from 17% and 15%, respectively.
The target to private credit remains unchanged at 10%.
According to a presentation included with Nov. 10 board meeting materials, the new mix will improve liquidity, meet the board's willingness to accept more volatility for higher returns and meet its maximum loss tolerance of about 18% in a fiscal year.
As of Oct. 31, the actual allocation was 36.1% public equities; 22.3% private equity; 12.9% real assets; 12.1% public fixed income; 11.9% absolute return; and 4.7% private credit.
Investment consultant NEPC assisted.